Tips on why it’s important to choose the right contract manufacturer location
Location, location, location. Important for real estate, but does location matter when choosing a contract manufacturing partner?
Absolutely.
Breaking into an international market is challenging. A contract manufacturing organization (CMO) in your target market streamlines your process, including:
- Meeting local regulatory requirements
- Handling procurement direct to the location
- Convenience of local distribution
Working with a manufacturing partner in your desired market saves you both money and time
Contract Manufacturer Location Advantages
Working with a manufacturing partner in your desired market saves you both money and time. Learn how the contract manufacturer location works to your advantage:
1. Regulatory
Regulatory requirements vary across different countries. Local quality experts will have the strongest grasp of regulatory requirements in their country, and the facility should already be up to code. This protects you during audits and offers the fastest path to production.
2. Shipping Logistics
Shipping your product to international customers is slowed by risks of customs delays, or in extreme circumstances, not receiving import permission. Product sitting on the dock may not be temperature controlled, resulting in spoilage and replacement costs. By choosing a local manufacturer that offers pick-pack-ship services and using them as a domestic distribution point, your customers will receive their products faster and with less complications. When selecting a partner, consider geography within the country as well. If your components ship by freight from Asia, a West Coast US manufacturer will cut substantial time off your raw materials supply chain in comparison to an East Coast competitor.
3. Cost Savings
International shipping is expensive. Instead of importing your products to your market, consider having them made locally. Your manufacturing partner can help qualify and procure the necessary materials, shipping directly to their site on your behalf. Look for CMOs that offer turnkey solutions for the most streamlined experience.
4. “Made in the USA”
The local movement is growing. Consumers today value products made nearby and respect the companies that supply them. Labeling your product as originating in your target region lends goodwill.
Cross-border collaboration
Recent improvements in telecommunications and software have significantly improved the ease of cross-border manufacturing. Teleconference software eliminates the expense of international calls, and even the farthest time zones can find convenient times for meetings. Real-time translation software is no longer science fiction, and can unlock partner companies that do not speak your language. Many CMOs also employ bilingual personnel. For added convenience, look for a CMO located near a major airport to facilitate site visits.
Argonaut has extensive experience working with clients from around the globe. Our drug product manufacturing line meets the stringent new EU requirements as well as those in the US. Additionally, we operate under cGMP and are ISO 13485:2016 certified. We offer our service range a la carte or completely turnkey, so your product can be sourced and shipped from the USA, if desired. Argonaut’s Carlsbad, CA location is less than an hour from the San Diego International airport, and under three hours from LAX. Additionally, our field offices on both US coasts enable convenient conference call times regardless of your location. If you are ready to break into the US market, contact Argonaut today to get started!
