Third-Party Manufacturer describes any person, firm, or company which carries out the production and/or manufactures the licensed products on behalf of the Licensee.
This business practice implies hiring qualified third parties to perform functions that the manufacturer may not have the space, time, equipment, or expertise to handle in-house.
Why should you consider third-party manufacturing?
- One of its greatest benefits is that it can decrease your operating expenses.
- With third-party manufacturing, you can get your own brand-name products most inexpensively. It reduces the production cost and completes the placed order in the required time with the desired efficiency.
- You can get a wider audience with your own product and sell the product to a wider audience across the country in numerous ways.
- Collaborating with third-party manufacturing is a great way to reduce the stress and burden of the manufacturing process.
- It is a great solution to complete the manufacturing, especially for the small companies in their developmental stage.
The manufacturer makes sure that your products are manufactured in certified facilities providing high-quality products at all times. Third-party manufacturers can take care of designing and production on your behalf so that you can focus on your essential operations like sales.
What are the steps leading to third party manufacturing?
- List the desired products and request for rates
- Finalize your order quantity and product composition
- Place the order
- Finalize artwork
- Submission of required documents
- Products delivery
Contract manufacturing vs. Third-Party Manufacturing
Practically there is no major difference between Third Party and contract manufacturing. You can use one in place of the other. However, there is a theoretical difference linked with the terminology.
The term third-party manufacturing is used when a company gets manufactured product with its own brand name at a particular quantity. On the other hand, the Contract Manufacturing term is used when a company gets a manufactured product at customized terms and conditions., i.e., providing everything related to manufacturing of the product, such as raw material, excipients, packaging material, die, etc.
There is no time compulsion to deliver the goods in third-party manufacturing. On the other hand, contract manufacturing has a delivery time compulsion.
Most small companies work based on third-party manufacturing, whereas medium-sized and big companies work with contract manufacturing.
What you should consider before hiring a Third-Party service?
- Can they accommodate custom orders?
- What are their leads times?
- What are the shipping costs?
- What are their minimum order quantities?
- What is the cost per unit?
- Can they grant you exclusivity?
- Are there setup fees involved?
- What’s their defect policy?
- Is the manufacturer sustainable and ethical?
The most important thing for startups is finding a manufacturer who shares their values. It would be best if you did not adapt your business to the manufacturer but instead spent extra time and effort finding a manufacturer that suits your needs.
We suggest you look for good ethics, reliability and ask for no less but a trustworthy third party.
Microwin is one of the most prominent and reliable companies in the market, as far as third-party manufacturer services are concerned.
We support pharmaceutical companies by offering customized solutions.–We focus more on addressing the key issues for the benefit of our clients.
-We can bridge the demand and supply gap, which will go a long way to empower our clients to meet their business goals.
With us, you can acquire infection prevention products in your brand name, using our expertise, experience, and professionalism.
When you need a successful and convenient manufacturing process in India that adheres to regulation and ensures consistency in each product, Microwin is the way to go!