Reasons for Considering a Contract Manufacturer
While there is greater control in having all the manufacturing in house, more and more companies in the vet/pharma, biotechnology and complementary feed industries are turning to specialized contract manufacturing companies to outsource their manufacturing such as Nutribio. As it is a long-term alliance, there should exist a strategic alignment with the company and the contract-manufacturing partner sharing trust, long-term vision and partnership. The reasons and benefits for divesting from manufacturing are numerous:
- Increased capacity. Relying on a contract manufacturer to increase production capacity. This can either be externalizing manufacturing in peak demand periods, outsourcing the production of a specific product to dedicate a line to the production of another product or product type or the ability of a contract manufacturer to scale up production faster to meet market demand.
- Improve quality and make operations more efficient. Contract manufacturing companies have a dedicated and specialized team to ensure raw material quality, the manufacturing process is done efficiently and accurately and quality standards meet the requirements of its customers.
- Lack of facilities or space. Investing in a new line or expanding a manufacturing plant requires significant investment capital, space, planning and human resources. Externalizing the contract manufacturing can avoid this work with a company that has already the facilities and expertise in place.
- Help reduce labour and overhead costs. The use of a contract manufacturer allows to invest money and resources in other departments such as R&D, innovation and sales and marketing.
- Offer increased flexibility. A contract manufacturer can offer geographical flexibility to be closer to your target markets, the ability to better adapt to scheduling and starting projects and the capability to focus on developing products simultaneously and scale production when needed.
Choosing a contract manufacturer is a strategic partnership, which needs to develop into a long-term relationship based on trust. The relationship should be a win-win with clearly defined guidelines and expectations from the beginning from both parties. Nutribio has been in the contract manufacturing space for more than ten years and has experience handling the manufacturing of different companies within the animal nutrition and health industries. Based on the growth of our business we have recently invested in a new GMP+ manufacturing plant focused on contract manufacturing complementary feeds for the livestock and companion animal industries.
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