A.G. Industries is a cosmetics company engaging in private label and contract manufacturing. With a modernized lab and technologically advanced equipment for all beauty cosmetics, skin care, hair care and more, they conceptualize and manufacture cosmetics for companies who aim to launch new brands or introduce more innovative varieties in their existing ranges.

The company firmly believes that innovation is the key in an ever competitive scenario. Their experts provide end-to-end solutions for the design, formulation, approval and manufacturing of all their requirements. Their quality assurance team ensures that their products are delivered to the client on time. 

From start to finish, from developing advanced skin care formulations to a wide range of packaging & filling, from sourcing finest ingredients to wonderfully finished products, from bulk production requirements to smallest customization’s, A.G. Industries brings the concepts to reality.

Contract manufacturing is a crucial tool for small business and entrepreneurial start-ups looking to make their product the next big emerging technology. Here are a few more advantages CMs provide:

1. Save on Costs & Maximize Profits
2. With a CM, you can save on costs significantly. By outsourcing your product manufacture, you will not have to dedicate valuable in-house resources to manufacturing. Working with a CM eliminates the need to juggle between vendors and helps you avoid running into unexpected costs. You’ll overall reduce labor costs significantly.
3. By knowing exactly what your manufacturing process will cost you ahead of time, you can practice better budget control throughout the entire product life cycle.
4. Increased Technical Insight
5. Contract manufacturers also provide businesses with technical insight found nowhere else. Since CMs build products for a versatile selection of companies, they have valuable in-depth knowledge into product build for various niches.
6. CMs also have the knowledge to spot potential risks and flaws within the design early on. This can prevent fatal mistakes within a product that could cost you significant funds in the long run.
7. More Flexibility Within Your Company
8. Since a contract manufacturer will completely take on your manufacturing process, you’ll create more opportunities within your company.
9. When you choose to outsource the manufacturing process, you’ll free up time for your employees to create more innovative prototypes and design additional groundbreaking products. Your employees will experience flexibility to focus on what’s truly important.
10. Scalability
11. As a small business or start-up, it’s difficult to scale your product with limited resources at hand. Since contract manufacturers have significantly more resources, they’re more than able to scale your product.

If you’re experiencing a peak in demand or seasonal decrease in demand, contract manufacturers can quickly scale production needs to whatever is necessary. With these scalable measures, you’ll be able to take your product to new levels and be in control of demand fluctuation.

As great as contract manufacturing sounds, sometimes it isn’t the best fit for a company. Below are a few cons to contract manufacturing that you should keep in mind when deciding what’s best for your business.

Difficult to Find a High-Quality Provider 
As with any business deal, without proper research, you could end up outsourcing to the wrong company. To find the perfect CM, you’ll need your team to conduct thorough research into a partner that fits your precise needs. A low-quality contract manufacturer can easily disguise themselves as a high-quality, reliable partner so be sure to do comprehensive research. Unreliable providers can delay processes and deliver flawed end products. 

Loss of Control 
With a CM, you will have to give up control of the manufacturing process. When relinquishing this control, you risk losing critical knowledge and skills around production techniques. Without constant supervision, your company won’t be able to pinpoint any problems within production. Make sure to check in at significant points of the project to guarantee there are no overlaying problems within the project. This will ensure the highest quality product at all critical points of production. 

Communication Gap 
When using a contract manufacturing service, your company may run into a communication gap that can cause a variety of problems for the production process such as: 

Unrealistic timelines 
No set transition plan 
Improper internal communication amongst your internal team 
Misunderstandings of capacity qualifications 

Without developing a product in-house, you won’t have direct communication with the people physically developing your product which could lead to the prior mentioned complications and more. 

Intellectual Property Risks 
A significant disadvantage of contract manufacturing is the risk of your intellectual property being stolen. When you outsource your manufacturing, you give dozens of workers access to your intellectual property. 

You risk your intellectual property being leaked. You also risk the possibility of your intellectual property being misused meaning your supplier would use it to their own advantage with them potentially becoming your competitor.