Why and when to contact a contract manufacturer

Contract manufacturers big and small are producing dietary supplements by the hundreds of thousands, at almost any price point and in every form imaginable. If you have the seed of a new product idea, maybe a formulation, and your team's main expertise lies solely in marketing, it may be time to give outsourcing a shot.

"By outsourcing manufacturing to a company that has the knowledge and expertise to produce a quality finished product, a customer can focus on other aspects of business, including branding, marketing and selling their finished goods," said Steve Holtby, president and CEO of Soft Gel Technologies. Founded in 1994, the Los Angeles-based business offers sourcing, formulation and soft gelatin encapsulation services.

Holtby said many customers who want the softgel delivery form are not aware of its formulation challenges, which are different from that of a capsule or tablet. This is one instance where a contract manufacturer's (CM's) expertise can come into play, making CMs a valuable partner for knowing what can – and can't – be done to your new formulation during the manufacturing process.

In other words, if you don't want "the overhead or the headache," to quote Holtby, pitch your formulation or new product idea to a CM.

Is a contract manufacturer right for you?

Consider working with one if you answer yes to any of the following questions:

• You're a small company and can't pump out a million units.
• You have no facility to make the product or don't want to invest capital in the equipment.
• Your company is overwhelmed and needs manufacturing help.
• You aren't equipped to meet the FDA's GMPs (Good Manufacturing Practices).
• You want to launch a private label (like Safeway's O brand or Whole Foods' 365 brand).