Maneuvering through the manufacturing industry could be challenging and confusing, especially for startups. As field newbies that lack ample time and resources, these companies tend to outsource to third-party organizations to manage and complete some of their business operations, like producing and packaging goods.
What Is Contract Manufacturing?Contract manufacturing is the process of entering a mutual agreement with a service provider to produce specific components of a product or fill operational gaps. This practice helps businesses achieve their goals by having a third-party to supply parts, components, or exclusive products and services designed to meet their specifications. As a result, they can cut expenses and production time, allowing them to prioritize other aspects of their business. Tropical Labs is a private label and contract manufacturing company dedicated to meeting clients’ product specifications and exceeding their expectations. We are committed to our craft’s purpose of creating customer relationships that empower and set them up for long-term growth.
Benefits of Contract ManufacturingConsidered a form of outsourcing, contract manufacturing delivers several benefits to companies that hire contract manufacturers exclusively in subcontracting or selling their products. Listed below are the advantages of retaining a contract manufacturer:
Cost ReductionCompanies can save operational expenditures when they hire contract manufacturers as they no longer have to shoulder equipment and raw materials expenses. They also save on overhead costs by eliminating the need for extensive square footage to run their operations and house resources and machines.
Prioritization of ResourcesContract manufacturing enables business organizations to allot their time and resources toward other operations. Hence, they can focus on different facets of the business — such as brand marketing and partnerships — as their contract manufacturers shoulder the manufacturing responsibilities.
Manufacturing Time OptimizationContract manufacturers have the resources and technology to mass-produce products while maintaining high-quality standards. Thus, they can help companies reduce their manufacturing time, allowing them to bring products to market faster and earn profits sooner.
Personal Care Contract Manufacturing ProcessTropical Labs manufactures various products catering to several industries. One of these is our personal care products with made-in-the-USA formulations that meet and surpass your target market’s expectations. This section will guide you through the process of contract manufacturing with Tropical Labs for your personal care products.
Settling All ConsiderationsThe first step in the process is finalizing the scope of work and other considerations before reaching out to contract manufacturers. In this phase, we advise clients to prepare a concrete plan about the product they want to outsource. They should also consider polishing the designs for packaging, product components and features, allotted budget, and target schedule for preproduction and production stages. Clarifying cosmetic claims on raw materials and over-the-counter (OTC) drugs is also a vital step in this process to broaden the client’s understanding of the product. Cosmetic claims pertain to any text, image, or symbols used by brands in presenting their product’s characteristics in the market. These product descriptions and classifications also help in advertising and marketing the product. False cosmetic claims could harm the company’s brand. Therefore, clients should ensure their claims are substantial and proven to prevent issues from arising when the product is introduced to the market.
Selecting a ContractorTo ensure that products are of high quality and would undergo standard protocols, it is essential to find and assess contract manufacturers by following these criteria:
- Quality Facilities: When choosing contractors, companies should ensure the manufacturer’s location is well-managed and orderly. Machinery and equipment should be fine-tuned as this ensures the quality of products to be released.
- Streamlined Communication: Contractors should have excellent communication skills to foster and ensure a healthy collaboration between the two parties. They should be honest about their offers and capabilities and can quickly respond to production demands.
- In-Depth Market Awareness: Contract manufacturers must have the right skills and knowledge to follow the industry’s changing trends, allowing them to tailor their products and formulations to the latest best practices.
Finalizing the Contractor-Client AgreementAfter securing the manufacturer that best fits your company’s requirements, the succeeding processes involve the agreement of both parties. Hiring companies and contractors should come to terms regarding the considerations prepared during the first step of this process. Several documents should be prepared, such as the Mutual Non-Disclosure Agreement (MNDA), the Research and Development (R&D) Tax Credit Documentation, and the Master Service Agreement (MSA).
Plotting Time Frames and ScheduleClients and their contractors should plan the activities to be implemented during the preproduction and production stages of the outsourced products. They should carefully plot schedules to ensure that the production will not experience setbacks because of delays in the delivery of raw materials. Both parties must also agree on planning communication strategies to ensure the project’s success. These include meetings, site visits, quality control, and product testing. At Tropical Labs, we meet our clients at least once weekly during the benching process to discuss product formulations. This is done to guarantee the project’s consistent progress and ensure that production follows the designated schedule.
Planning the SpecificsThis stage entails the preproduction stage of manufacturing. Here, plans regarding packaging details, quality control protocols, and approvals are prepared before moving on to the production stage. Companies and manufacturers should have the artwork and labels approved and undergo quality checks to ensure that their design agrees with the concept of the product and brand. In addition, companies should ensure that their packaging design is compatible with the products being manufactured. For instance, hand lotions should use smaller, squeezable tubes for easier use and access. Once all prerequisites have been developed and approved, the next step involves the approval of preproduction samples and a bill of materials. This includes the formula for the products. Tropical Labs does in-house pre-packaging compatibility for our clients. When designs are approved, we usually pack them out and ship them overnight to our customers for counterchecking.
Producing the SamplesDuring this step, the hiring company evaluates the samples to see if they would pass the company specifications and standards. If the sample products gained approval, the manufacturer would create the pilot batch of the products.
Releasing the Pilot BuildsPilot builds are products in final form that would undergo compliance process approval. Ideally, these products should be flawless and contain the highest quality among all released samples. This pilot batch is used for the stability chamber and tested for its shelf life duration.
Finalizing the Compliance ApprovalThe products will go through final quality control and compliance approval to check if they are qualified to be released and introduced in the market. Shipment of final products often follows this phase, and the process moves forward until the products reach their target market.
Partner With Tropical Labs for Your Personal Care Contract ManufacturingTropical Labs has worked with many brands over the years and has helped them move up the ladder in their respective industries. We can do the same for you! Tropical Labs also deliver contract manufacturing with the following products:
- Face care
- Hair care
- Body care
- Ethic care
- Organic oils
- Plant-based products
- Men’s care
- Outdoor care
- Pet care
- Home care