Why Choose Contract Manufacturing for Your Business?

In the current competitive business environment, organizations are always looking for methods to enhance their production processes and lower expenses. One successful approach that has become increasingly popular is contract manufacturing. So, what is contract manufacturing, and what advantages can it offer your business?

Understanding Contract Manufacturing

Contract manufacturing is where one business hires another to produce some or all parts of their product. Doing business this way allows companies to leverage the resources of manufacturers without needing to invest a lot of money into physical facilities.

Types of Contract Manufacturing

There are a few different ways to approach contract manufacturing:

• Private Label Manufacturing: This is where one business hires another to produce their entire product.
• Individual Component Manufacturing: This is where businesses will hire outside companies to manufacture a portion of their final product but not the whole thing.
• Contract Assembly: Where contract manufacturers assemble provided components into the final finished product.
• Contract Packaging: This is where the contract manufacturers also handle the shipping and distribution of the products.

Advantages

• Cost Efficiency
• Access to Expertise
• Flexibility and Scalability
• Companies can focus on marketing or sales rather than manufacturing

Challenges

• Ensuring quality products
• Product availability and delays
• State or Federal/Government compliance
• Reliance on third-party companies

How Strabo Partners SPL Can Help

Strabo Partners SPL offers a comprehensive solution for businesses engaged in contract manufacturing. By working directly in Microsoft Dynamics 365, SPL provides a familiar and powerful tool for managing manufacturing operations.

Key Features of Strabo Partners SPL:

• Quality Control: Advanced quality module ensures consistent product quality.
• Customization: Flexible solutions tailored to client needs, including multi-owner BOMs and inventory ownership.
• Supply Chain Management: Real-time tracking of inventory ownership and location.
• Regulatory Compliance: Detailed historical tracking and reporting capabilities.
• Sustainability: Integration of advanced supply chain AI for planning.
• Branding and Marketing: Robust tools within Dynamics 365 for strong brand identities.
• Inventory Management: Comprehensive management and loss/damage management features.
• Intellectual Property Protection: Accurate costing and automatic billing features.

About Strabo Partners

Strabo Partners builds industry-leading 3PL software to provide third-party logistics businesses with an end-to-end software solution. Strabo Partnered Logistics is a full-service solution designed to increase output and streamline operations. The cloud-based software is built to be the last warehouse management system needed, offering features such as:

• Ownership Tracking: Track inventory ownership at either a summary level by warehouse or at the smallest detail inventory level.
• Loss and Damage Management: Automatically manage breakage and loss, with multiple settlement options including payments, billing, and inventory replacement.
• 3PL Billing: Automate billing for transactions in shipping, receiving, warehousing, and production, with configurable billing periods and accruals.
• Detailed Historical Tracking: Maintain a comprehensive history of billing and transactions, perfect for business intelligence reporting.
• New Transactions Specific to 3PL: Introduce delivery and receiving transactions designed for products not owned by your company, simplifying data entry and management.

By leveraging these features, Strabo Partners SPL enables businesses to overcome the challenges of contract manufacturing and achieve their growth objectives efficiently and effectively.