Finding a Right Contract Manufacturing Partner

February 02, 2023

It’s the same story with many companies who consider contract manufacturing. They grow, begin exceeding in-house production capacities, decide to find a contract manufacturing partner, and realize outsourcing is just too difficult and confusing.

But it doesn’t have to be that way. As SGRL is offering contract manufacturing services for drug intermediates and fine chemicals for more than 15 years, we have an optimised checklist of areas as mentioned below that are considered while selecting a contract manufacturing partner in the field of Fine Chemicals and Pharmaceuticals.

Confidentiality

It is the very first area to check if you are dealing with a reliable and trustworthy partner who has a significant track record in contract chemistry confidentially. A company must welcome a Confidentiality Agreement (Non-Disclosure Agreement) with business partners/clients to ensure absolute confidentiality as the chemical market is being more and more competitive while the product development phase is as crucial as it was.

Capabilities

Finding a partner with extensive capabilities for pharma intermediates and fine chemicals will allow you to consolidate vendors and minimise the cost through many factors. There are many add-on capability factors you can ask while selecting contract manufacturing such as packaging and packed material handling facilities etc.

Experience and Expertise in Chemistry

Chemical manufacturers who are in the business of contract chemistry for years can help you manage the quality, production time, and dispatch time for complex products and reactions. For complex products and highly regulated industries, manufacturing expertise is more than just a list of capabilities. While offering the contract to the experienced manufacturer you are hiring their research, technology transfer and production expertise also.

Quality Management Systems and Certifications

Contract partner with a well-managed QMS means buying an extra set of eyes on your manufacturing process, doubling the quality levels of your product. In such cases, your products are more efficient and that too with assured quality. Contract partners certified by strict organizations and highly regulated authorities must have policies and QMS which will help you get assured about the quality of products and services.

Longevity and Stability

Evaluate the performance and financial stability of a company before you entrust them with your manufacturing. For example, SGRL is in the business of contract chemistry and is well-positioned for the future. Many of SGRL’s partnerships are running for more than 10 years. SGRL has helped their partners to be the best in business by delivering solutions and support at any stage of the supply chain.

Total Costs and Competitive Offerings

Competitive offerings and cost management depend on many factors and not only on buying cheaper raw materials, equipment, and services. Many experienced partners manage raw material costing by buying in bulk and managing a good reputation with their suppliers. Such good partners also manage the cost by using their experience in synthesis pathways, bulk production, and supply chain management. Understanding the total cost of manufacturing will allow you to compare product to product. For the same evaluation of the total cost of manufacturing, duties, insurance, logistics and supply chain cost etc. must have to be considered. Chemical Reaction Technologies and Production Flexibilities Managing various products and various chemistries from a single vendor or partner will help you to develop extended business relations. It will help you to expand the product offerings and to anticipate a need to be ready for fluctuating product demands. Scaling up and down is also a part of production flexibility. The right partner should be ready and able to grow with you.

Communication and Documentation Support

Non-existent or ineffective internal communication can negatively affect a manufacturing company in a variety of ways. Workplace risks and inefficiency in production and supply chain management can be the outcomes of low levels of engagement and ineffective communication. Documentation support is a prime factor when selecting the contract manufacturing partner. Ineffective documentation support in contract manufacturing may lead you to step out from the highly regulated, regulated and/or key customers.

Customers and Clientele

Cross-checking out or finding out the customers of your manufacturing partner can help you find the actual capabilities of the manufacturer. In finding the right contract manufacturer, you need to know that the selected company has the bandwidth to handle your project. Will you be the largest client for this company? Or will you be the smallest?
Still, there are niche factors to be considered depending on the sector and market you serve. If you have any in your mind, please mention them in the comments section.