Contract Manufacturing :
Businesses today thrive by focusing on what they do best and leaving the rest to others. Contract manufacturing seems to fit neatly into this practice. In addition to allowing companies to focus on core competencies, contract manufacturers offer numerous other advantages over in-house manufacturing, including lower costs, flexibility, access to external expertise and reduced capital.
Even with solid assumptions, it may be a struggle to achieve the hoped-for benefits. That's largely because it's difficult to manage complex relationships. Ideally, the parties would create perfect plans that would make it possible to manage the relationship Instead; organizations need to take a strategic approach to contract-manufacturing relationships.
In today's competitive environment, the contract manufacturing business is quite challenging. The development of new components and technologies demands high capital investment and specialized resources. The increasing complexity of pharmaceutical products has phased out manual operating methods and forced manufacturers to utilize hi-tech automatic manufacturing techniques. This works out to be more cost-effective for them since their internal resources can be focused on more important aspects of business such as product development and marketing.
This trend has led to a boom in a phenomenon called contract manufacturing (CM). The CM business in the field of pharmaceutical is growing rapidly worldwide, and is expected to further accelerate at a very robust rate over the next five years. Globally. It has been observed that production equipment being used by different manufacturers is quite similar.
Winning factors in Contract manufacturing:
1. Product Quality.
2. Cost Competitiveness.
3. Delivery Schedule.
4. Managing the Manufacturing Shop Floor
