Contract Food Manufacturing – Is it the Right Move for Your Business?

If you’re reading this, then you probably heard a lot of great things about contract food manufacturing and how it can help you maximise profits while minimising capital risks. That said, it’s not a decision that business owners would want to leap into blindly.

There are a few critical things that you would want to consider before outsourcing anything to a contract food manufacturer. For one thing, you would want to ensure the safety of people who are already patronising your product. Switching out any step (or the entire process) of food production shouldn’t affect the quality of your product.

Not having to spend money on workforce or production facilities is good and all but you shouldn’t have to risk one thing that is ultimately far more important — brand credibility.

Remember that you can’t “unbreak an egg”. That is to say that once you decide to outsource to a contract food manufacturer, you can’t take back anything negative that might happen as a result. Hence, it is always a good idea to exercise due diligence and look for a reputable contract food manufacturer.

So where do you start

While you probably won’t have any trouble finding contract food manufacturers like Omniblend in your area, keep in mind that they’re not all the same. Hence the first thing that you would want to look into is the performance history of any contract manufacturer that you’re looking to work with. Take the time to verify credentials, or better yet — get in touch with one of their past or current clients. If you feel that the contract manufacturer is rushing you, then that’s a red flag you would want to look out for.

Investigating the viability of a contract manufacturer might seem like too much work. Hence you might be tempted to delegate the task to someone else. If you do, make sure that the person in charge of doing so is someone you trust. After all, it’s a critical decision and one that ultimately determines the future of your business.

If possible, it’s also a good idea to book a visit to the manufacturer’s base of operation. That way, you’ll be able to see for yourself, whether or not they’re an excellent company to work with. It’s also an excellent opportunity to see their accreditations and bring up any questions or concerns.

What about your copyright?

In addition to quality and concerns, another factor that business owners would want to consider before working with contract food manufacturers is the issue of copyright. After all, you’re going to have to divulge all or some aspects of production to the manufacturer. For many businesses, these elements are a closely guarded secret.

To be specific, you wouldn’t want your competitors to learn the formula to one of your best-selling products. That’s why many of the most successful brands on the market like Coca-Cola and KFC, use multiple manufacturers to produce the different ingredients for their product. You might want to consider doing the same.

If not, then at the very least, you would want to make sure that the legal safeguards are in place. This includes (among other things) an NDA (Non-Disclosure Agreement) which would help ensure that the manufacturer doesn’t betray your confidence, or face severe consequences.

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