Third Party Manufacturing & OEM Manufacturing
Written by
Partner - HimPharm
Introduction
What is Third Party Manufacturing?
Third-party manufacturing, also known as contract manufacturing, OEM manufacturing or outsourcing manufacturing, refers to a business arrangement in which a company (the client or brand owner) contracts with a third party manufacturer to produce its products.
In this arrangement, the client provides the product specifications, design, and sometimes the raw materials or components, while the third-party manufacturer handles the actual production processes, which in HimPharm’s case are healthcare products.
For businesses looking to outsource their manufacturing and focus on core competencies, partnering with a reliable 3rd party contract manufacturing company can provide numerous advantages.
HimPharm, as an established contract manufacturer of pharmaceuticals and nutraceuticals, offers crucial benefits that enable your company to compete and grow profitably.
The Advantages of Third-party Manufacturing
What are the advantages of third party manufacturing? Outsourcing production to a third party healthcare products manufacturing partner like HimPharm offers several advantages and benefits:
- Access to advanced manufacturing infrastructure: HimPharm has invested in establishing state-of-the-art manufacturing facilities equipped with the latest technology and machinery. This eliminates the need for you to set up your own capital intensive operations.
- Supply chain management: HimPharm handles everything from raw material procurement, production planning, and quality testing to final dispatch and delivery. This frees you from managing complex supply chain logistics.
- Expertise and technical know-how: HimPharm leverages rich industry experience and technical expertise honed over 100+ years. Their qualified team and knowledge capital would be difficult for an individual company to match to undertake complex toll manufacturing.
- Improved time-to-market: By leveraging HimPharm’s ready infrastructure, you can launch products faster without going through the long gestation of setting up your facility.
- Risk minimization: Contract manufacturing reduces demand uncertainty related risks and allows you to easily scale production to align with market needs. The risks are borne by HimPharm instead of your core business.
- Focus on core competence: Outsourcing factory manufacturing allows you to allocate management bandwidth and resources towards sales, marketing and product development which drive growth.
Common Pain Points Associated with Third-Party Manufacturing and How to Address Them
Outsourcing your manufacturing processes to third-party companies can be a strategic move for businesses looking to streamline their operations, reduce costs, and focus on core competencies. However, it’s not without its challenges. Below we’ll dive into the common pain points associated with third-party manufacturing and explore effective ways to address them with pharmaceutical manufacturers.
Common Pain Points
- Quality Control – One of the most significant challenges in third-party manufacturing is Maintaining Consistent Product Quality. To address this, businesses should implement stringent quality control measures, conduct regular audits, and collaborate closely with manufacturing partners.
- Communication Challenges – Ineffective communication can lead to misunderstandings, delays, and errors in the manufacturing process. To mitigate this, businesses should establish clear communication channels, fostering transparency and accountability.
- Cost Overruns – Managing production costs is a concern for many companies. To avoid cost overruns, it’s essential to have transparent pricing agreements and contracts in place, with contingency plans for unexpected expenses.
- Intellectual Property Concerns – Protecting your intellectual property (IP) is crucial when sharing proprietary information with third-party manufacturers. Robust legal agreements, non-disclosure agreements (NDAs), and strict IP protection measures can help safeguard your interests.
- Lead Time Delays- Delays in production can impact your supply chain and customer satisfaction. Effective project management and contingency planning can help minimize lead time delays.
Process Improvement at HimPhatm
How to Address These Pain Points
Third-party manufacturing and private label manufacturing can be a valuable resource for businesses, but it comes with its share of challenges. By understanding and addressing these common pain points, companies and individuals can make the most of this strategic partnership. A collaborative and proactive approach, along with the right choice of partners, can turn these challenges into opportunities for growth and success.
- Choosing the Right Partner – Selecting a toll manufacturing partner with a proven track record and a strong commitment to quality is the first step. Conduct thorough due diligence to ensure they align with your business objectives.
- Clear Communication Channels – Establish open and frequent lines of communication with your manufacturing partner. Regular meetings, project updates, and feedback sessions can improve collaboration.
- Transparent Pricing – Work with your partner to create clear and detailed pricing agreements for managing costs. Anticipate potential cost fluctuations and include them in your contracts.
- Protecting Intellectual Property – Enforce strict intellectual property protection through NDAs, contracts, and secure data sharing protocols. Keep your IP safe while sharing necessary information.
- Effective Project Management – Implement efficient project management practices, monitor progress closely, and have contingency plans in place to mitigate delays.
- Humane approach – You have to understand that people work with people, because of the inter-personal relationships they form over their association. Treat your Third Party Manufacturer as you would want your customers to treat you. Take a more humane approach to your interactions and show empathy to your manufacturing partner to nurture a good relationship, without sacrificing on your product requirements.
Related Terms
Contract Manufacturing vs Private Label vs White Label
Third-party manufacturing includes three related terms: private label, white label, and contract manufacturing.
Contract manufacturing involves producing a finished or semi-finished product exclusively for a client. Like private label, the client can modify the product to meet their branding, selling, and marketing needs. Contract manufacturing agreements are usually long-term, ensuring a steady supply of the product to the buyer.
Private label products are unique items manufactured exclusively by a manufacturer for a specific retailer or client under their brand name. In private label arrangements, the retailer or client can modify the product to meet their branding, selling, and marketing needs. Private label products are typically purchased in larger volumes than white label products and are often sourced in bulk.
White label products are generic items sold by a manufacturer to multiple retailers or clients under their respective brand names. The product remains consistent across all retailers, with only the brand name on the label changing. Retailers cannot modify the product, and white label products can be sold in smaller quantities to match the manufacturer’s batch size.
These distinctions highlight the different levels of customization and exclusivity offered by each manufacturing arrangement. Whether you need private label, white label, or contract manufacturing, HimPharm can deliver high-quality products tailored to your brand and requirements.
Contract Manufacturing
Annual Supply Contracts- Stock or Customized product, label & container
- Annual or monthly contracted minimums
- One Stop Solution
- Just in Time Scheduled Turnaround
- Stock Product & Customized products
- International Shipping to all countries
- Your Retail Price, no restrictions
- Paid Sample available
- Customize Product, Container or Label
- New product(s) developed
- Facility Visits
- Warehousing Available
Private Label
Custom Products in Your Label- Custom product, label & container
- Higher Minimums
- One Stop Solution
- Fast Turnaround
- Stock Product & Customized products
- International Shipping to all countries
- Your Retail Price, no restrictions
- Paid Sample available
- Customize Product, Container or Label
- New product(s) developed for higher minimums
- No Facility Visits
- Warehousing available at costs
White Label
Easy, Fast, Low MOQ, Stock Product- Stock Product, Label & container
- Low Minimums
- Hassle Free & Simple
- Super Fast Turnaround
- Stock, Ready to ship products only
- Shipping to most countries around the world
- Your retail price, no restrictions.
- Paid Sample available
- No Customisation
- No Product Development
- No Facility Visits
- No Warehousing services
Why Choose HimPharm's Turnkey Third Party Manufacturing Services?
What makes HimPharm the preferred manufacturing partner? Below are some benefits of our third-party manufacturing services.
- WHO GMP certified facilities: HimPharm’s world-class facilities comply with WHO Good Manufacturing Practices giving immense credibility.
- Proven track record: Over 100 years of manufacturing excellence across herbs, pharma and nutrition sectors. They’ve worked with companies of all sizes over the years ranging from big pharma to an initial stage startup. They have executed contracts ranging from those spanning multiple years to a single supply contract. HimPharm’s rich & deep experience in food, herbs and dietary supplements has helped it come up with innovative, unique products. This experience has also helped improve quality, lower prices and offer better solutions to clients & buyers.
- Wide product portfolio: HimPharm offers private label and contract manufacturing for a vast range of formulations and dosage forms.
- Customized services: They provide tailored solutions including proprietary formulations, packaging and more aligned to your exact requirements. Through their New Product Development and R&D teams HimPharm develops natural products from scratch. While new product development is undertaken for a Minimum order consideration it is only available under Private Label or Contract Manufacturing services at HimPharm. HimPharm charges a product development & sampling fee before undertaking any new product development.
- Order flexibility: HimPharm easily handles production quantities ranging from small pilot batches to mass production orders. You can conveniently adjust your sourcing quantities based on your market’s demands. HimPharm will adjust production to your needs and you can simply scale your sourcing needs up or down based on your market requirements to ensure optimum utilisation of resources and get your customers the freshest and best quality product just in time.
- Reliability: The company consistently delivers products on time due to stringent quality protocols and supply chain expertise. Regular communications, check-ins with your purchase department and updates on your batches help manage expectations. This keeps you reassured of your product reaching your customers in time, so you can focus on other things and not have to worry about product delays or losing sales to low stocks.
- Value-added services: HimPharm supports you with other services like regulatory compliance, lab testing, logistics, graphics and more for end-to-end solutions. HimPharm offers all health and wellness product-related solutions under one roof – including design, warehousing, logistics, exports, international trade, testing, and so on. Everything is provided so that a buyer can concentrate on selling, and let HimPharm provide everything else.
- Global reach: Products manufactured by HimPharm are exported worldwide to over 60 countries.
- Packing Conceptualization: HimPharm develops design concepts & product designs to meet your market requirements or product aspirations. Their design teams work in collaboration with clients’ teams to develop an innovative packaging concept around your product’s needs & requirements.
- Premium Design Services: HimPharm offers premium design services as an extra addon service. This service provided at an extra cost includes support for label design, logo development, insert & leaflet design, mono-carton box design, catalogue design, promotional material design, product mock-up design, etc.
Their unique strengths make HimPharm the manufacturing partner of choice for businesses seeking world-class production quality without undertaking the headaches of in-house manufacturing.
HimPharm's Manufacturing Expertise
HimPharm provides best-in-class manufacturing infrastructure and capabilities:
- Advanced technology: Their facilities leverage high-tech machinery including automatic packaging machines, automatic processors, hi-tech driers and more for efficient bulk production.
- GMP certified unit: HimPharm’s unit complies with stringent GMP and food safety norms certified through WHO, ISO, FSSAI etc.
- R&D expertise: In-house R&D team develops cutting-edge proprietary formulations backed by science.
- Testing laboratory: The in-house lab performs rigorous testing of raw materials and finished products ensuring quality standards.
- Talent pool: HimPharm employs a large number of technically qualified professionals across manufacturing, quality control, engineering etc.
- Capacity expansion: Ongoing investments are underway to expand production capacity through automated assembly lines.
- Consistent quality: Robust quality protocols and controls ensure manufactured products consistently comply with purity, potency and quality benchmarks.
Their sophisticated manufacturing infrastructure empowers you to offer quality compliant products and become industry leaders.
Quality Control to ensure top quality toll manufacturing services
HimPharm employs rigorous quality control across all aspects of their contract manufacturing services:
- Supplier audits: Raw material suppliers are carefully evaluated and regularly audited for compliance with quality norms.
- Incoming material testing: Each incoming batch of ingredients or packaging undergoes sampling and testing as per established specifications.
- In-process testing: Finished product testing is performed at multiple stages during production to ensure desired parameters are achieved.
- Finished goods testing: As per protocol, each batch goes through extensive testing across physical parameters, microbiological analysis, chemical assays and more post-production.
- Stability testing: Ongoing accelerated and real-time stability testing establishes the product’s shelf life and ensures consistent quality over time.
- Process validation: All critical processes are validated as per approved protocols to demonstrate operational effectiveness and compliance.
- Change control: Any changes in formulation, process, equipment or facility are governed through a robust change management process to minimize risks.
- Audits: Regular self-audits as well as audits by external inspection agencies ensure continuity of quality compliance.
Their unwavering emphasis on quality enables you to stand by your brand promise and gain customer loyalty.
Effective Communication - to build lasting relationships
Flexibility to adjust to an ever-changing environment
HimPharm provides immense flexibility making them the ideal manufacturing ally to your toll manufacturing needs:
- Custom formulations: Their R&D team can develop unique formulations tailored to your specific product design or market positioning.
- Private label manufacturing: HimPharm offers private labeling and branding services letting you launch products under your chosen brand identity.
- Small batches: For market testing, they can produce small batch or pilot batches as low as 1000 units without compromising process or quality.
- Order quantity: HimPharm fulfills order quantities ranging from few thousand units to mass orders of bulk units per month seamlessly.
- Manufacturing solutions: Choose from in-house formulation or toll manufacturing using your ingredients and Intellectual Property.
- Packaging options: Select packaging specifications including bottles, jars, sachets, attractive packs and more in desired colors, shapes and sizes accotrding to your product design.
- Labeling: HimPharm provides label designing and compliant labeling that represents your brand effectively.
- Express delivery: For urgent orders, HimPharm offers express production and delivery services through their logistics partners.
Their versatility and swiftness empowers you to nimbly respond to market needs.
Cost Savings
Partnering with HimPharm generates notable cost optimization:
- No fixed asset investment: You avoid investing and managing CAPEX intensive land, building, machinery and manpower to setup a manufacturing unit for the pharmaceutical industry.
- Economies of scale: By producing for multiple customers, HimPharm achieves much better asset utilization resulting in lower unit costs.
- Cheap labour: Access to abundant skilled workforce in India brings significant labour cost advantages.
- Shared overheads: Numerous overhead expenses are distributed among multiple client orders lowering the burden which leads to managing costs to meet your target product costing.
- Supply chain savings: Their buying clout with raw material vendors and logistics partners enable competitive rates. To know more refer to HimPharm’s Guide to Navigating Global Supply Chains for Private Label Products.
- Focus on core business: Outsourcing manufacturing reduces non-essential costs and allows you to allocate funds towards high-impact activities.
The resultant cost optimization flows down to you in the form of competitive pricing allowing profitable business expansion.
HimPharm, as a leading pharmaceutical company, has recognized the importance of effective communication in third-party manufacturing. They have developed a systematic approach to ensure that their communication with their clients and partners is exemplary.
In a world where effective communication is the linchpin of success, HimPharm stands as a shining example of how pharmaceutical companies can excel in third-party manufacturing relationships. Their commitment to clarity, transparency, and collaboration ensures that they continue to build lasting relationships with their manufacturing partners, ultimately benefiting the third party manufacturing industry as a whole.
- Clear Communication in the Manufacturing Process
One of the fundamental aspects of HimPharm’s communication strategy is the clarity of instructions during the production phase. They provide detailed guidelines and specifications to all involved parties, leaving no room for ambiguity. This not only ensures product quality but also streamlines the manufacturing process, saving time and resources. - Timely Updates and Transparency
HimPharm believes in maintaining an open channel of communication. They provide regular updates to their partner clients, keeping them informed about the progress of the manufacturing process. This transparency helps partners anticipate any potential issues and work proactively to address them. - Collaborative Problem Solving
Rather than treating clients as mere buyers, HimPharm views them as collaborators. They encourage partners to share their insights and suggestions, fostering a culture of joint problem-solving. This approach strengthens the partnership and leads to innovative solutions. - Building Trust Through Communication
Effective communication is the cornerstone of trust. HimPharm’s consistent and reliable communication builds trust with clients. HimPharm values the relationship through trusted timely communication, leading to long-lasting relationships. Trust is essential for the success of any business, and HimPharm recognizes this. - Use of Technology
In today’s digital age, technology plays a significant role in facilitating communication. HimPharm employs cutting-edge communication tools and platforms to ensure that information is exchanged in a timely and efficient manner. - Benefits for Both Parties
Effective communication benefits both HimPharm and its clients. HimPharm delivers high-quality products on time, and their clients benefit from a strong and reliable business relationship, ensuring a steady flow of orders and consistent revenue for them. - Continuous Improvement
HimPharm understands that effective communication is an evolving process. They consistently seek feedback from their partners and work on improving their communication strategies to adapt to changing circumstances. - Expertise in the Field
With years of experience in the pharmaceutical industry, HimPharm possesses in-depth knowledge and expertise in third-party manufacturing. This expertise allows them to provide precise instructions and guidance to all involved partners, vendors and employees, making the communication process efficient and effective.
Conclusion
Third party manufacturing with HimPharm provides the springboard for nimble and cost-efficient foray into the wellness nutrition market without undertaking the pains of establishing your own production.
HimPharm’s expertise honed over 100+ years makes them a manufacturing ally you can bank upon for world-class quality, flexibility, reliability and value. Their end-to-end solutions facilitate easy market access under your desired brand identity.
As demand for health supplements and preventive nutrition grows, partnering with HimPharm provides the ideal launchpad to launch differentiated offerings, build robust supply chain and fuel your product vision. HimPharm helps convert your novel ideas into reality – made in India for the world.
HimPharm manufactures health and wellness products in your brand’s name under its 3rd Party Manufacturing services
Frequently Asked Questions
Most frequent questions and answers about Third Party Manufacturing
I am a startup & want to source small quantity or minimums for a product- what service should I use to get products with my logo & company details?
You should check out HimPharm’s White Label products to source low MOQ (minimum order quantity) products – White Label products are available in smaller lots and Minimum quantities per order.
What is third-party manufacturing, and how does it relate to HimPharm?
Third-party manufacturing refers to a business arrangement in which a individual or company (the client or brand owner) contracts with a manufacturer to manufacture products. In this arrangement, the client provides the product specifications, design, while the manufacturer referred to as third-party manufacturer who handles the actual production processes.
HimPharm is a Third Party Manufacturer of health & wellness products. For businesses looking to outsource their manufacturing and focus on core competencies, partnering with a reliable 3rd party contract manufacturing company can provide numerous advantages.
HimPharm, as an established contract manufacturer of herbs, pharmaceuticals and nutraceuticals, offers crucial benefits that enable your company to compete and grow profitably.
I want to source a product that is a knock off or copy of another product - Can HimPharm provide a similar product?
Provided the product is not protected under Intellectual Property rights, contact HimPharm to start a conversation around a copy product.
Share details of pack size, container, product formulation & label for the product that needs to be copied.
I want a product in HimPharm's Brand label?
No, HimPharm does not provide products in its own brand name. HimPharm is a 100% pure third party manufacturer & will not brand or sell products in their name, as it creates a conflict of interest with clients.
I want a product without having "Manufactured by HimPharm or Healing Herbs on the label". Is this possible at HimPharm?
No, HimPharm will not provide any product without it’s name & address under the manufactured by head on the product label. All final products need to carry the manufacturer’s name, & complete address as per regulations.
I want a product in my label in a foreign country - Can HimPharm export it to my country?
Yes, HimPharm regularly exports to a large number of countries world-wide. Contact HimPharm to know more about International Trade, Export processes, FDA regulations, or timelines.
Can you explain the cost structure and pricing for third-party manufacturing with HimPharm?
Typically, the cost structure and pricing for third-party manufacturing agreements depend on various factors, including the type of products being manufactured, the scale of production, the complexity of the manufacturing process, and the specific terms negotiated between the contracting parties.
The exact cost structure and pricing would depend on various factors such as the type of service chosen, the specific requirements you have, the volume of the order, and so on. For detailed information on pricing, it would be best to contact HimPharm.
How do we initiate the process of requesting a quote or proposal for our manufacturing needs with HimPharm?
Understanding Your Manufacturing Needs
Before diving into the process, it’s essential to have a clear understanding of your manufacturing needs. Ask yourself:
- What are the specifications of your product?
- How many units do you need?
- What are your customization requirements?
The better you can articulate your needs, the smoother the process will be.
Requesting a Quote: Step by Step
- Contact us – Fill out the contact form or write our sales team an email.
- Product Information: Provide detailed information about your product, including its specifications, materials, and any special requirements.
- Quantity: Indicate the number of units you wish to manufacture.
- Customization: Specify any customization needs, such as branding, packaging, or labeling.
- Contact Information: Enter your contact details so that HimPharm can reach out to you with the proposal. There may be requests by the product development team to set up a call, or request clarifications on email.
- Submit: Review your information and hit that send button. It’s as simple as that!
- Additional Customization Options: HimPharm understands that no two products are alike. They offer a wide range of customization options to suit your specific needs. From product design to packaging, you have the flexibility to make your product uniquely yours.
- HimPharm reviews your proposal: Once you’ve submitted your request, HimPharm’s experts will carefully review your requirements and craft a proposal. This proposal will detail the cost, timeline, and any additional information you need to know. Keep an eye on your inbox for this important document.
If I source a white label product from HimPharm, can I source it under private label later when I require higher quantities?
Yes, you can shift from White Label to Private Label or Contract manufacturing at any time.
What is the process of getting started with HimPharm for third-party manufacturing?
HimPharm offers products in the below categories under 3rd party product manufacturing services
- White Label
- Private Label
- Contract Manufacturing
Please refer to the mentioned Third Party Manufacturing Related Terms to see more details on the above, and the comparison table that shows similarities and differences between these third party souring techniques.
Each of these has a different process, but all start with having a conversation with HimPharm to understand your 3rd party sourcing needs, and to answer your questions. So let’s talk to get started on 3rd party health and wellness product sourcing.
I want higher minimums on a product but want you to match my target price on a product, can HimPharm match my target price?
HimPharm loves working with buyers who have a target cost finalized for a product that they want to source. Contact HimPharm with details of product, pack size, order quantity per SKU & your target cost for HimPharm to confirm their best supply price.
I have an idea around a product - will himpharm manufacture it for me? What are the minimums for developing a new product?
HimPharm undertakes new product development for a minimum order quantity ranging between 2000 to 3000 units per SKU, depending on the batch size for the new product. New product development by HimPharm is charged a development & sampling fee – Call HimPharm Sales to know more.
What are the capacity constraints at himpharm ?
HimPharm has very high capacity for manufacturing all its products. They have helped buyers & clients easily and rapidly scale from initial quantities to high volumes of 100x or 500x of their initial order – Call HimPharm Sales to know more timelines on high quantity or high volume orders.
I want to quickly source a product - without any hassle or inputs from me - How can HimPharm help?
Check out HimPharm’s White Label.
What types of products can be manufactured through HimPharm's third-party manufacturing services?
HimPharm manufactures a large variety of products, including vitamins, supplements, dietary supplements, teas, herb blends powders, etc. To see a full list of products manufactured by HimPharm (click the link).
How can HimPharm ensure the confidentiality of our product and formula details?
Ensuring the confidentiality of your product and formula details is a critical aspect of any third-party manufacturing agreement. To help protect your intellectual property and sensitive information when working with us, HimPharm implements the following strategies
Non-Disclosure Agreement (NDA): HimPharm signs a robust non-disclosure agreement (NDA) before sharing or receiving any confidential information. This legal contract outlines the terms and conditions of confidentiality, including penalties for breaches. The NDA is an important part of the third party process at HimPharm, and is co-signed together with the client very early on in the initial conversation stages with most clients.
Limited Access: HimPharm limits access to only those individuals within HimPharm who need the information to perform their specific tasks. Minimize the number of people who have access to your proprietary data helps make it more secure.
Secure Communication: HimPharm use’s secure communication channels when sharing sensitive information. Email encryption, secure file transfer methods, and secure messaging platforms help protect your data during transmission.
Data Encryption: HimPharm ensures that any digital copies of your formula and product details are stored in encrypted form. This adds an additional layer of protection in case of unauthorized access.
Intellectual Property Protection: Ensuring your product and formula details are properly patented or trademarked before sharing them with anyone. This can provide additional legal protection.
What is the average turnaround time for manufacturing and delivering products?
HimPharm is known for its impressive efficiency when it comes to manufacturing and delivering products. They prioritize quality, have streamlined manufacturing processes, and boast robust delivery logistics, all of which contribute to their ability to provide timely service to their customers.
It’s important to note that the specific turnaround time for manufacturing and delivery may fluctuate due to factors like product complexity, order volume, and delivery location. However, HimPharm’s unwavering commitment to minimizing delays ensures that they consistently meet and often surpass customer expectations in terms of product manufacturing and delivery.
These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.
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