Contract Manufacturing

Contract Manufacturing

Save Time and Lower Costs Through the Strategic Sourcing of Contract Manufacturing Services

Contract Manufacturing Strategic Sourcing

Organizations can routinely find cost savings to their bottom lines by outsourcing their product manufacturing to a contracted manufacturing company. These savings in production costs are necessary in today’s demanding and low-margin market. But identifying the ideal contract manufacturer for your organization’s production needs can be difficult given the hundreds of third-party manufacturers in the market, each with unique capabilities and limitations.

Source One’s strategic sourcing consulting services can help.

Our proven combination of deep market intelligence, subject matter expertise, and strategic sourcing best practices has helped us identify the ideal contract manufacturing organization (CMO) for numerous clients. By identifying the proper CMO for our clients, Source One’s strategic sourcing team helps them reduce costs, eliminate risks within their supply chains, and creates competitive advantages.

Let our strategic sourcing experience drive down your contract manufacturing costs and ensure that you engage the right contract manufacturing organization for your needs.

In our more than two decades of service providing strategic sourcing and procurement services, working with hundreds of companies in dozens of industries, Source One has developed a suite of adaptable, customizable strategic sourcing, cost reduction, and spend management solutions that we will tailor to your organization’s specific needs as we identify the most ideal contract manufacturing solution for you. We will:

Develop a holistic view of your company’s operations, and a full and comprehensive understanding of your organization’s needs and requirements for a contract manufacturer

Research the market to determine which contract manufacturing organizations best suit your organization

Identify those third-party manufacturers capable of carrying out all unit operations in-house, where possible, to save you time

Identify those contract manufacturer facilities with the equipment necessary to manufacture your product at the desired volume

Ensure that the identified CMOs have the correct and necessary certifications and well-developed quality systems in place to support global applications

Compare and benchmark each supplier’s pricing for each phase of the technology transfer process

Initiate and develop relationships with the CMOs, and begin and cultivate productive dialog between your organization and theirs

Equip you with strategies to centralize, control, and maintain your bill of material (BOM) data to limit errors, reduce waste, instill higher quality, and ultimately control costs

Source One’s strategic sourcing approach saves you time and provides your decision-makers with a clear picture of the suppliers in the market

As part of our strategic sourcing process, we profile a vast array of contract manufacturing organizations to give you a wide angle view of supplier capabilities with an initial Request for Information (RFI) phase. This RFI allows for the categorization of each contract manufacturer’s capabilities without disclosing your proprietary information, limiting intellectual property risk. Once the initial RFI is complete, Source One will initiate the first round of supplier validation and vetting with your stakeholders. We will then work with you to refine the detailed questions that will be issued to the remaining contract manufacturers as part of a more in-depth Request for Proposal (RFP). The RFP includes a technical brief on your product to ensure the most accurate pricing proposals from the CMOs.

Source One’s RFPs are thorough, and seek information on a variety of the contract manufacturer’s capabilities, including:

Business Considerations

Product and Market Considerations

Quality Components

After the RFP is complete and all potential CMO proposals have been submitted, the next step of the strategic sourcing process involves your decision-makers sitting down with Source One’s sourcing team to identify which of the bidding CMOs will be considered finalists. Source One will offer guidance and make recommendations, but your organization’s decision is final. Once a decision has been made, Source One’s strategic sourcing team will leverage our unparalleled volumes of real-time market intelligence against the potential CMOs proposal to secure additional benefits, including efficiency gains, service level improvements, and secondary and one-time cost savings opportunities.

Choosing the right contract manufacturing organization can create a number of competitive advantages for your company. Gaining exclusive access to manufacturer innovations, using cost-cutting technologies, reducing lead times, and buying out a CMOs capacity are just some of the potential competitive advantages awaiting a company that gains an ideal partner through the CMO relationship. Let Source One help you make as informed a decision as possible, and create a lasting impact in the marketplace, when you select your next contract manufacturer.

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Sourcing Specialized Contract Manufacturers

For the Electronics Industry
Whether your organization needs to cut costs in its PCB fabrication or electronics assembly, Source One’s strategic sourcing team can help you identify the ideal contract manufacturing organization for electrical manufacturing services (EMS).

Our sourcing team has the subject matter expertise to tackle specific challenges like:


When sourcing an EMS CMO, Source One’s strategic sourcing team identifies all potential manufacturers, not just the large market leaders. Our sourcing team can identify the smaller companies that present an ideal blend of High Mix Low Volume (HMLV) and High Volume Low Mix (HVLM) capabilities.

For the Pharmaceutical Industry
While strategically sourcing an ideal contract manufacturing organization for any industry is not something to be taken lightly, sourcing a medical CMO is further complicated by strict governmental regulations over the industry on a global scale.

Source One’s strategic sourcing team meets this challenge by heavily scrutinizing potential medical CMO candidate’s regulatory compliance history and their current registration state to ensure that their work is compliant with FDA, MDD, PMSB, and other specific regulatory agency requirements. We secure quality system audit reports, warning letters, and critical observations are provided up-front by each potential CMO candidate.

Source One’s medical CMO regulatory verifications include:


Strategic Sourcing in the Pharmaceutical Industry

For the Medical Device Industry
Like the pharmaceutical industry, medical device manufacturing is heavily-regulated. As emerging markets make use of lower-cost labor and less stringent regulations, medical device manufacturers must find ways to reduce costs and remain competitive. More compellingly, manufacturers must balance reducing the cost of goods sold (COGS) with upholding the quality standards necessary for this life-saving technology. Following proven end-to-end product lifecycle management (PLM) and total asset management (TAM) techniques, we help you identify, qualify, and partner with CMOs who fit best for your organization.

Let Source One help you manage contract manufacturing for commodity groups including:


Strategic Sourcing for Medical Device Equipment and Medical Supplies Manufacturers







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