Using a Contract Manufacturer – is it the right for your product?

  |   Articles

WHAT? a food or beverage factory that offers its production and packaging facilities to other businesses.

 

WHO? often a factory that has invested in up to date equipment and technology and is looking for a return on that investment.

 

WHY? would you consider using a contract manufacturer? If you do not own a food or beverage factory yourself or if your new product needs a particular kind of technical or packaging process that you can’t fit in your budget. For example, High Pressure Processing for beverages or nitrogen flush packaging for snack foods.

 

WHEN? should you start thinking about using a contract manufacturer? As soon as your new product concept takes shape. It is never too early but it is often too late.

 

WHERE? it’s no secret most food and beverage contract manufacturers are in the eastern states of Australia, but that means they are also close to ports and population – hardly a bad thing.

 

HOW? do you find a contract manufacturer that is right for you? Put it on your technical consultant’s list of Things to Do.

 

 

 

Getting your ducks in a row

You have your new food product concept, you have used some of your R and D budget to create the prototype, the feasibility assessment is almost complete – you just need to put in the numbers for manufacturing costs before you get to the commercialisation gating stage aka make sure you don’t blow your life savings on a product that you can’t actually produce.

 

It is time get your ducks in a very neat and very controlled row. You are going to know all those ducks intimately by name, size and star sign and you are going to have them under your supreme control, because if you don’t they will scatter and hold you up.

 

This is the stage in your development process where you need data, lots and lots of it.  So much about your final product depends on your choice of manufacturer, for example, your packaging specialist and graphic designer can’t really get going until they know what substrate the packaging line can handle, your wholesale price can’t be set until you know your production volumes and your ingredient list can’t be finalised until you are sure the contract manufacturer will accept all of them in their facility.

 

Your ducks’ have names including:

  • Packaging capability
  • Throughput rate
  • Inners
  • Cartons
  • Palletisation
  • Quality Assurance
  • Warehousing
  • Accredited ingredient supplier audit
  • Line trial
  • Production schedule
  • Minimum ordering quantity
  • Sales forecasts

 

That is just for starters. You are already herding all the other aspects of your new food business, and keeping them orderly is hard enough.

 

Grow Consultancy knows a lot of ducks. We know how to line them up so you have the best chance of  getting your product over the line and launched. We use our networks and industry knowledge to bring you the best options for success.

 

So, start the journey with technical food consultants who can see the end point and have the skills and knowledge to line those pesky ducks up in a very neat row so you cross the finish line without losing any stragglers.