When we first start working with clients, we often get a lot of questions about how turnkey contract manufacturing differs from other types of business models.
Turnkey contract manufacturing is a full-service option for wholesale and retail products. A turnkey manufacturing vendor assumes the full responsibility of the entire supply chain. They can also offer various advantages of expertise when it comes to formulation and design.
How Does Turnkey Manufacturing Differ from Consignment Manufacturing?
There is often some confusion as to the differences between consignment manufacturing and turnkey contract manufacturing. While the two processes are often discussed as an either/or, the critical difference is really in where the design process starts and ends.
The consignor essentially helps a third party manage the storage, shipment, and logistics of a product. In the consignment scenario, the vendor essentially owns the inventory on behalf of the customer. Consignment can be an effective form of inventory management for a new product where a lot of risk is involved. However, in most scenarios, consignment manufacturing partners do not have a hand in the formulation or design of the product itself.
Turnkey contract manufacturing provides a more full-service approach. Turnkey manufacturing vendors facilitate everything from product design, production and delivery.
A turnkey contract manufacturer provides full, end-to-end design and supply chain services. In our industry, that includes:
- Formulation and blending
- Sourcing ingredients
- Full supply chain management
- Shipping and logistics
Put more simply, the turnkey contract manufacturing service organizes and manages the entire design and implementation of your product.
What Are the Benefits of Turnkey Contract Manufacturing?
In the world of chemical products, the up-front investment costs to manufacture those products are substantial. A turnkey contract manufacturer has already scaled its operations to meet those needs, passing the substantial savings onto the customer.
Beyond the facility itself (and the specialized equipment necessary to run it), the manufacturer has already recruited and hired engineers and specialists with advanced education and experience. That staff also has the institutional knowledge to satisfy the considerable regulatory hurdles for OSHA, EPA, FDA, and so forth.
When you work with a turnkey contract manufacturer like PCI, you can shorten the distance between concept and delivery without making those significant investments in a massive facility. We have the institutional knowledge in-house, as well as the experience you need to get your products into the hands of your customers as quickly as possible.
That expertise will reduce time and money spent on:
- Packaging & design
Those resources cut down on your financial risks and ensure a high-quality product. In turn, you have the confidence you need in the products you’re shipping to your customers.
A Turnkey Contract Manufacturer Has the Right Knowledge Base and Experience
In any industry, guesswork can be costly. In ours, you need assurances you’re working with a contractor that doesn’t just handle and formulate chemical compounds safely, but also has access to the right suppliers for those materials.
An experienced and well-resourced turnkey contract manufacturer:
- Manages end-to-end supply chain issues and vendors
- Already has the appropriate certifications (EPA, Halal, etc.)
- Can advise you on best-practices for your products from ingredients to packaging and labeling
If you need a last-minute change to your product or need assistance quickly, by working with an experienced vendor, you have the agility and security to scale up or down as needed.
Critical Quality Control Processes Are Vital
Before a product is finally shipped, your contract vendor will already have an internal process established to confirm that product’s safety and quality.
Examples of those various processes include:
- A QA process to review and approve new materials and vendors
- An end-to-end specification system for all raw materials for in-process materials (batches) and finished goods
- A documentation process to manage and secure master files, production documents, and lot files on finished goods
- A formalized procedure for receipt, approval, and storage of incoming materials
- Disposal and release procedures for all materials
Product Quality Depends on a High-Quality Contract Manufacturer
There’s a good reason many consumer goods companies outsource the manufacturing of their products. You need the confidence that your products have been designed, formulated, and tested. Those products also need to be bottled, labeled, and stored properly to ensure consistency across your entire shipment, every single time.
At PCI, we can create specialty formulations in any batch size, whether that’s 40 gallons or 4,000. We provide contract manufacturing services to customers both big and small, no matter where you’re located in the U.S. Our staff is as passionate about your product quality as you are, providing you with personalized and committed service, even if you’re not “one of the big guys.”
We work hard to gain and keep your trust. In addition to contract manufacturing, we can facilitate product development and private label options in both the household and industrial industries. Our 42,000-square-foot manufacturing facility is EPA registered, and we take serious steps to stay green by minimizing waste and handling material responsibly. We can even reformulate your products to make them more eco-friendly, a real benefit for your end-users.
Click here to get your bid started, or to talk to one of our experts today.