Contract manufacturing for food processing businesses
Contract manufacturing may be outward (your business supplies a product or service to another business) or inward (your business contracts another business to produce part of your product or supply a service to you).
You may find that outsourcing products, components or services will help your food processing business to remain competitive during start-up or growth periods. For instance, having a product bottled or packaged by another business under contract may eliminate the need to invest significantly in extensive equipment or additional staff when cash flow is tight.
Some small food manufacturers find that outsourcing work to a well-equipped business is a better strategy than bearing the cost of putting in a bottling or packaging line.
The other side of contract manufacturing is it allows well-resourced businesses to better use their equipment and staff during downtime.
This guide will give you an overview of the contract manufacturing process, and how you could use it in your business.