There are countless benefits that you can avail from cosmetics contract manufacturing. Cost reduction, efficient allocation of resources, and more agile response to transformation in business strategy are a few ones.
Yet just like the bright side, contract manufacturing also has its dark side that only experienced people know. It also poses risks for quality functions in regulated industries where products come under extra scrutiny. It is a responsibility of the organization to assess the right risks and check with contract manufacturing partners whether they are performing as per their expectations or not.
The level of risk of contract manufacturer should explain the depth of quality’s involvement, so that the function can keep up the quality standards high while saving the finance and strategic advantages of the partnership.
There are some steps that you may consider to enhance the management of your relationships with your contract manufacturer. We will discuss them in this post-
#1. Create a criteria list to assess contract manufacturers
The list includes both your company’s internal standards and external criteria, such as FDA regulations. You need to cinsider certain factors like manufacturing principles, safety and environmental criteria, quality management systems, and standards for testing of products.
#2. Contract manufacturers requirement to secure approval on major changes
You should include a clause in the contracts that needs contract manufacturers to re-apply for approval in case they want to use a new facility or work with new subcontractor.
#3. Make modifications in your assessment of contract manufacturers as per the risks involved
It requires time to assess contract manufacturers completely, so work with Procurement to determine which contract manufacturers pose the major risk to your organization.
#4. Track performance
You must track performance of the team to ensure contract manufacturers are doing their job as per the standards. Companies usually take a combination of four approaches to track performance – assessments, non-comfortable metrics, sampling/testing, and monthly performance reports.
#5. Assist them in improving
Monitoring contract manufacturer’s performance will help you in determining the areas that require certain improvement, for instance- to become more efficient, to create a new product, or to develop new capabilities.
#6. System management for information
It is critical to track relevant information, whether you use a series of spreadsheets or perform data integration into existing systems.
If your cosmetics contract manufacturing requirements meet the standards, you can continue as a partner with your contract manufacturer.