Industry Experts Address Contract Manufacturing IssuesIndustry Experts Address Contract Manufacturing Issues

Industry Experts Address Contract Manufacturing Issues

To retain a competitive edge, many businesses are choosing to focus on core competencies and contract external operations for projects requiring supplemental production capacity and/or expertise. For many marketing and manufacturing companies in the dietary supplement industry, contract manufacturers offer advantages over in-house manufacturing including lower costs, flexibility, access to outside proficiencies and reduced capital.

However, for expectations to be fully realized, companies must understand what key factors make a contract manufacturing relationship work, as well as what pitfalls to avoid to ensure the intended value is gained from the relationship.

INSIDER: What are some recent changes or trends in private label manufacturing?

John Blanco, president at Bridgeport, Conn.-based AnMar International:

What we have seen is a greater move to outsource production. When a brand company is full in its production line and, thus, needs someone else fill the bill, or when a company wants to concentrate on what it does best (e.g., make tablets and capsules), they leave the granulation, blending and coating work to companies that specialize in those functions.