Contract To Kill - Focus on Core Competencies
Contract manufacturing capabilities could very well include activities that comprise blending, sifting, spraying and turnkey processing. The success of this very vital supply chain link depends not only has the know-how but also the technology to manufacture the best solutions. Wherever contract manufacturing and packaging production lines are modular, the retail players can reap rich dividends by exploring the wealth of contract manufacturing. This helps the manufactures meet virtually any specification for contract manufacturing and contract packaging. Contract manufacturing goes hand in hand with contract packaging capabilities. Contract packaging capabilities could very well include activities that comprise vertical and horizontal form, fill and seal, labeling, multiwall bagging, poly bagging cartoning and labeling.
As we have always stated that IT follows business, therefore the success of any contract manufacturing engagement also depends on the capability of both the primary Retail/CPG player as well as the contract manufacturer. The sophistication of IT landscape at both ends will drive the richness of such engagements and the inculcation of industry best practices. In my upcoming blogs I will deliberate with you, on the different models in contract manufacturing, system capabilities to meet business imperatives and many other aspects of this enticing and intriguing aspect of retail and CPG industry.
If implemented with a lot of thought to align the business needs to system capacities and capabilities, Contract Manufacturing could very well be a Contract to Kill - To kill the competition, as each Retail/CPG player focuses on its core competencies. This a giant leap in their journey to becoming a world class player.
