Contract Manufacturing
Launching a new company or product line typically requires a large investment, not to mention a significant amount of risk. Between research and development (R&D), manufacturing, testing, packaging, and fulfilment, it can quickly become cost-prohibitive to get a new product off the ground. Contract manufacturing is an excellent choice for companies in this situation. By partnering with an established manufacturer for production and fulfilment, companies are free to launch new products with minimal investment and minimal risk, allowing employees to focus on what’s important to their individual brand.
Urban Food Group is a contract manufacturer based in Auckland. For companies with product ideas but without the means to manufacture, Urban Food Group can help develop and formulate any Dry product based on customer requirements. Once the formulation is approved, we handle the entire process from sourcing and producing all raw materials, to filling, labeling, and packaging. The end result is a finished product ready to sell on the market
What is Contract Manufacturing and Why is It Important?
Contract manufacturing is an increasingly popular arrangement in which a customer presents a product concept or design to an established manufacturer, who then handles the actual production. In contract manufacturing, clients retain complete control over their product’s specifications, but they benefit from the experience and high-end equipment of a dedicated manufacturing facility. As a result, companies have a fast, affordable, and reliable method of launching products that exceed their current manufacturing capabilities.
Without contract manufacturing, small, new, or expanding businesses often find themselves stymied by the massive start-up costs of launching a new product. With contract manufacturing, they can keep their existing workflow exactly intact, outsourcing production without sacrificing creative control over the product design.
Contract Manufacturing Process
The contract manufacturing process is thorough, covering the entire product design timeline from R&D to packaging. At each step, Urban Food Group provides detailed updates to clients, soliciting feedback to ensure that the end result is aligned with our customer’s expectations.
- R&D / Formulation. Once we have a detailed picture of the product’s vision and constraints, we can begin the formulation process, which involves careful research and testing to identify the ideal processes and ingredients for the product.
- After obtaining approval for the formulation, we draw on our extensive industry network to obtain raw materials at the best prices. Sourcing is a key, but often overlooked benefit of contract manufacturing. Established manufacturers draw on their relationships and the economies of scale offered by operating multiple simultaneous projects and customers to purchase premium materials at bulk prices that would not be unavailable to the client on their own.
- The client gives the final sign-off for production, allowing us to fulfil the order.
Urban Food Group guides clients through all of these phases, providing expert advice at every step. We then proceed to packaging, filling, and order fulfilment as dictated by the contract. Our versatile equipment is able to fill and various containers and packages, including but not limited to jars & sachets of multiple shapes and sizes. In the spirit of continuous improvement, we constantly incorporate new capabilities and technologies into our operation to ensure that we can meet the broadest range of client needs possible. We’re also committed to honest and fair pricing, and we disclose any setup or tooling costs up front before production begins.
Benefits of Contract Manufacturing
Contract manufacturing offers a number of key advantages over attempting to produce a new product in-house:
- With contract manufacturing, you can begin manufacturing a new product with minimal investment, since the outsourcing partner already has access to equipment and excellent prices on raw materials.
- Contract manufacturing puts you in personal contact with industry experts, who guide you through the formulation and marketing processes. These relationships promise a superior product with less trial and error, especially for those entering a new product space.
- Low risk. In-house manufacturing requires a significant up-front investment in equipment and training. If the product owner needs to change directions, they would then be out far more than if they had simply outsourced.
- Contract manufacturers offer turnkey solutions, including in some cases direct fulfillment of client orders. For companies with a specific product idea, there is no more convenient way to get started.
Contract Manufacturing vs. Private Label
An important distinction for companies considering contract manufacturing is contract manufacturing vs. private label manufacturing. While both are forms of outsourcing, in contract manufacturing, the client determines the product’s formulation and specifications in consultation with the manufacturer. In private label manufacturing, the client picks a well-tested stock formula, which they market under their own brand. Private label manufacturing is faster and more affordable, but contract manufacturing is a better option for those with very particular requirements or concepts.
Urban Food Group offers premium contract and private label manufacturing services to meet the needs of Seasoning industry clients.
To learn more about how contract manufacturing can help you launch a new product for less, please contact us today.