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Industry Experts Address Contract Manufacturing IssuesIndustry Experts Address Contract Manufacturing Issues

January 9, 2006

13 Min Read
Industry 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.

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