Find out those qualities and capabilities you’ll want your supplier to have before making an outsourcing decision.

To get their products on the shelves quicker, meet their customer needs and spend less capital, more and more chemical companies are choosing to outsource their production to contract manufacturers. For those looking to outsource, finding the right contract manufacturer is a series of careful assessments.

The time it takes for a chemical product to hit the market comes down to how fast the contract manufacturer can produce its compounds. How well it does once it gets there depends on the contract manufacturer’s overall caliber. To get an idea of what that caliber is a company can check with the manufacturer’s other customers. The company should also review available data such as the manufacturer’s size, previous customers and economic background. John Malik, the manager of new business development at Sigma-Aldritch Fine Chemicals, St. Louis, MO, says this data is important to look at since it “tells you whether a company is in the business for the long haul.”

The contract manufacturer’s technical ability is also of vital importance. According to Malik, “Your custom manufacturer should have technical expertise in the more challenging reactions required for a project.” This includes not only the technologies available to handle the job but also the requisite personnel to oversee the process. Scott Martin, vice president and general manager of fine chemistry services at Albemarle Corp., Baton Rouge, LA, suggests that outsourcers hold out for a firm that has “…at least several chemists and engineers on staff who can help bring your process down the cost curve.”

Also important is the equipment the firm has on hand. Companies should investigate whether a prospective custom manufacturer has the technology to handle complicated jobs in-house. If the contract manufacturer needs to put equipment in place to handle the job, the outsourcer should inquire about how much time the move requires. In addition, the ideal contract manufacturer should have equipment that can deal with a wide spectrum of product quantities, ranging from those that weigh in kilograms to those that weigh in tons. In order to cover all bases from quality to regulation compliance, it’s essential for the outsourcer to have a firm grasp of the process the contract manufacturer intends to use to create their product.

A convenient way to gage a contract manufacturer’s expertise and compliance level is to check their contractor’s record. If the company is ISO 9000 or ISO 1400 certified, it’s generally a good sign that their safety and environmental practices pass muster. A membership in either the Synthetic Organic Chemical Manufacturers Association (SOCMA) or the American Chemistry Council (ACC) is an indication that the firm upholds those organizations’ manufacturing guidelines. To truly determine whether or not the manufacturer’s equipment is up to par, it may be necessary to conduct a premises inspection. Pharmaceutical companies, in particular, are advised to audit their contract manufacturers’ facilities. For other firms, this may be less important. Another concern is speed. It should be expected that a contract manufacturer have both the capability and the personnel on hand to complete a project quickly.

Last, but not least, is cost. By the time all of the other criteria have been evaluated, and the list of potential suppliers narrowed down to a handful of firms, the cost of the manufacturer’s services usually becomes the deciding factor.

Source: Fine Chemicals: How to Choose a Contract Manufacturer
Gordon Graff
Purchasing, March 7, 2002
http://www.manufacturing.net/pur/index.asp?layout=articleWebzine&stt=000&articleid=CA197963&pubdate=03/07/02