Types of Contract Manufacturing

• OEM (Original Equipment Manufacturer): In this case, the manufacturer performs one or several operations. If multiple manufacturers are involved, the client is responsible for coordinating their interactions, including raw material supply and logistics.
• ODM (Original Design Manufacturer): This type involves the client entrusting the entire manufacturing process to the contractor, receiving the finished product.

Contract manufacturers can be divided into two categories: those that focus solely on contract manufacturing and those that also produce their own branded products. The former often have established business processes and ready-made solutions, while the latter can provide more personalized communication and flexible collaboration terms.

In the UAE and GCC region, businesses can explore options for outsourcing production functions through platforms that connect them with factories, workshops, and laboratories across various industries.

Benefits for Clients

1. Cost Savings: Outsourcing is typically less expensive than maintaining in-house production, leasing equipment, or managing production facilities.
2. Rapid Market Entry: Companies can respond quickly to changing customer needs, getting products to market faster.
3. Implementation of Ideas: With the contractor’s expertise and equipment, nearly any product idea can be realized.
4. Risk Reduction: If demand decreases, clients can adjust their orders without incurring fixed costs.

Risks for Clients

1. Intellectual Property Theft: Manufacturers may become competitors by using proprietary designs or ideas.
2. Quality Reduction: There is a risk that the contractor may use subpar materials or equipment that do not meet technical specifications.
3. Limited Production Control: Clients may not discover quality issues until they receive defective batches.
4. Breach of Agreement: Contractors may miscalculate their capabilities and miss deadlines.

Working with a Contract Manufacturer

The most critical aspect of industrial outsourcing is selecting the right manufacturing partner. To avoid the need for a replacement after the initial batches, it is essential to consider not only the cost of services and logistics convenience but also:

• Production Capacity: How well does it meet the client’s needs and potential, including minimum and maximum batch sizes?
• Scientific Foundation: Are there qualified personnel and laboratories equipped for innovative, unique, or eco-friendly product manufacturing?
• Quality Control: How does the manufacturer ensure compliance with the technical specifications?
• Communication: Is the manufacturer willing to engage in discussions about collaboration terms and handle complaints effectively?

Discussion of Technical Specifications and Recipe Approval

Before creating a production order, our specialists prepare a budget estimate and a detailed description of the manufacturing process. The contract includes clauses to protect the client’s intellectual property and assists in product certification.

Production and Quality Control

If the client lacks raw material suppliers, Biotechnology experts will source them. Production then commences based on the technical specifications provided.
Our team conducts incoming, in-process, and outgoing quality control. For outgoing quality control, samples are taken from each batch, and packaging integrity is checked.

Biotechnology utilizes high-tech equipment, with partially or fully automated stages of the technological process.