OEM and Plastics Contract Manufacturing

The relationship between an OEM and contract plastics manufacturing organization can be very productive and beneficial to both parties. With sound communication and understanding, a contract plastics manufacturing company can be a tremendous asset to the original equipment manufacturer, especially during labor shortages and/or spikes in business production. However, to maintain a healthy partnership there are certain things an OEM typically confirms when in the process of outsourcing to a contract manufacturer.

Choose the Right Contract Manufacturing Organization (CMO)

This is the most straightforward and apparent; make sure you have the right contract manufacturing organization or CMO. It's important that the OEM and contract plastics manufacturing organization shares the same vision and understand how to execute it.

Develop a clear, concise process and set of standards for choosing your ultimate CMO. Make sure you've evaluated the company and their quality of their work. Make sure they can handle the size and scope of your project.

When communicating with your chosen CMO, make sure that you develop a clear set of criteria based on your long term and short-term requirements, and make sure there is a system in place to evaluate those criteria every step of the way.

Manufacturing Contract

It’s more critical than ever to draft a manufacturing contract. A contract makes sure "what if" scenarios are covered before a situation happens, and not after. Defining these areas ahead of time can save a lot of money, aggravation and time in the long run. And having these stipulations in place will help to maintain a positive relationship with your CMO.

Pay Attention to Environmental Compliances

Confirm that your CMO is in sync with environmental compliances. Make sure you assess, manage and document your product's compliances. This is another reason why vetting and choosing a well-respected, quality CMO is so important. Your CMO needs to understand, not only Canada's compliances, but also the compliances of the destination country, if any.

Strategic Reasons to Outsource to a Plastics Contract Manufacturer

Quality:

ISO registered quality and NSF approved facilities serve as standard for quality management. Additionally, sound CMO owned internal audits of systems and processes specific to OEM standards required are incorporated into the plant processes.

Cost:

Manufacturing expertise and favorable buying power lower operational and material costs.

Supply Chain Logistics:

Experienced contract manufacturers can handle all logistical needs on the OEM’s behalf, such as transportation, customs documentation, package tracking, sea and air freight from anywhere globally.

Safe Deployment:

Mock recalls of product for traceability, mistake proofing, and various other systems will be in place.

Time-to-Market:

A plastics contract manufacturer allows and OEM to launch products with speed, adapt to demand and can scale quickly when the market demands.

Capacity:

Not only will an OEM have increased capacity at its fingertips using a contract manufacturer, but also increases in responsiveness, production technology and efficiencies. 

Expertise:

With the in-house capabilities ranging from engineering and custom injection mold manufacturing including design, to include finishing, assembly, and packaging an OEM can rely on full service solutions covering every facet of the process until the final products arrive at the final destination.

Do You Have More Questions About OEM And Contract Plastics Manufacturing Organizations?

Baytech Plastics has answers. Contact our team of specialists for more information on how an OEM and contract plastics manufacturing organizations can be mutually productive and beneficial.

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