How to Choose the Right Contractor
Qualities to Look for in a Third-Party Contractor
Here is a list of important considerations to check off as you review your shortlist of candidates.
Integrity
Integrity is the cornerstone of trust. A partnership that is built on trust ensures that your interests will be protected even without your direct involvement.
Financial Stability
The answers to these questions, and a risk assessment analysis, can shed light on the company’s financial stability. It is also advantageous to choose a contract manufacturer that can be easily positioned to fit your products or components into their existing product lines.
Quality Standards
One way to find out is to check the woodworking certifications the company possesses. If it is certified under the Architectural Woodwork Institute (AWI)’s Quality Certifications Program (QCP), you know that you can expect a certain standard of quality.
If your product is part of a lab furniture setup, a manufacturer that is SEFA (Scientific Equipment and Furniture Association) certified shows that it is committed to quality and safety in its choice of materials and processes. It will likely meet your needs for high-quality lab products.
Capabilities
Does it have the experience, machinery, equipment, technology, and skilled manufacturing staff to meet your need for aesthetics and functionality in your products? Can it handle large volumes efficiently at reduced cost and flexible lead time?
It would also be relevant to know if the company implements any processes to encourage innovation and continuous improvement. This kind of culture ensures that they always strive for the best craftsmanship and efficiency in whatever they do. It will benefit you — as your products will become part of their operations.
Capacity
This includes the space, equipment, trained labor, and work processes in place to handle the additional workload.
Since you don’t know how your contracted part of the business will evolve, it is also important to know how experienced your potential partner is in optimizing operations while managing fluctuating demands.
Communication
Communication is key to a smooth-running contract manufacturing partnership.
Learn how your third-party contractor manages projects with their current partners. This will give you insight as to whether they would be a good fit. There may be some expectations that need to be addressed upfront. All these discussions should be documented in writing so that each party is clear about their respective responsibilities from the very beginning.
Here are the main items to clarify:
- Who will be the main contact person or project manager for the partnership
- Who are the other members of the project team and their respective expertise
- What are the communication channels to be used to stay informed (emails, phone calls, regular update meetings, etc.)
- How frequent communication should be
- What is the process to resolve an issue
- How should events and actions be documented
Location
After a partnership has been established, occasional site visits are a necessary complement to virtual interactions in order to build a strong relationship.
More challenging still is an international contract manufacturing partnership. This sort of arrangement can be more complex and harder to manage. Be prepared for additional regulatory requirements, as well as possible communication barriers due to language and cultural differences.