Manufacturing, Co-Packing, Supply Chain, and Legal Contracts (MFBS-565)

We use results from a survey of specialty food manufacturers to examine how supplier-manufacturer relationships vary in the specialty food sector. While diverse mechanisms govern relationships between manufacturers and suppliers, relational contracts (longstanding, informal commitments) are the most common governance structure in our sample overall, particularly for medium-sized manufacturers. Vertical integration with the principal supplier is most common for smaller manufacturers, who also are most likely to use open market purchases. The largest manufacturers are significantly more likely to use formal contracts. Nearly half of manufacturers in our sample, regardless of their size, purchase directly from farms.

Before taking the outsourcing plunge, it is critical that businesses commit to processes that ensure the safety of consumers, the security of their intellectual property and compliance with food safety laws.

To bring your legacy product to market, you want to ensure you and the contract manufacturer are working together to find the most cost-effective and efficient solutions. The following questions act as your official guide to partnering with the right contract manufacturer.

The article discusses the essentials to consider while finding a manufacturing partner. It talks about the research and development in the nutraceutical industry, the marketing strategy and the contract manufacturers. It discusses the certifications of the natural products , the distribution, warehousing and raw materials required in the industry.

The article focuses on contract manufacturing or co-packing which is a practice by start-up brands and dairy processors to boost their processing equipment. Topics include the lessons learned by Brandon Partridge of Skyland Foods from choosing a business partner, the retailers which operate their dairy processing plants, and how to mitigate risk.

Four steps that can be taken to lead companies down the path of contract management optimization.

Contract packaging has proven to be a boon for the food and beverage industry and for innovation in processing and packaging. The lowered entry barriers such companies offer pave the way for first adopters to select state-of-the-art processing and innovative packages without taking the plunge and investing in a new line.