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What is an OEM manufacturer?
An OEM, or Original Equipment Manufacturer, is a company that manufactures products, components, or equipment that are used in the final products of another company, known as the “brand” or “reseller.” In this arrangement, the OEM manufacturer is solely responsible for the final product’s production and manufacturing, while the brand company is in charge of marketing, sales, and distribution.
The OEM manufacturer usually works behind the scenes, and their identity is mostly hidden from the end user. They are frequently hired by brand companies to manufacture products based on specific designs, specifications, or requirements of the brands. These products, however, are then sold under the brand company’s name.
OEM manufacturing is common in a wide range of industries, from basic goods such as foods, groceries, and consumer products to advanced goods such as electronics, automotive, aerospace, telecommunications, and others. OEM manufacturing enables brand companies to concentrate on their core competencies such as design, marketing, and customer service while outsourcing manufacturing to specialized companies that can produce the components or products at a lower cost or more efficiently.
Why do you need an OEM manufacturer?
OEM manufacturers can help not only newcomers in the market but also well-known brands. Here are some of those advantages:
- Cost-efficiency: OEM manufacturers frequently have specialized facilities and expertise in producing specific components or products. Outsourcing manufacturing to external manufacturers allows companies to benefit from economies of scale, lower production costs, and access to advanced manufacturing technologies without investing in their manufacturing infrastructure, allowing brand companies to avoid these risks and minimize their investment in capital.
- Access to specialized knowledge and skills: OEM manufacturers frequently have extensive experience and expertise in manufacturing specific types of products. Partnering with them gives you access to specialized knowledge, skills, and resources that your brand company may not have or need time to gain them.
- Scalability: OEM manufacturers are typically equipped to handle shifting production volumes, which means they can produce in both small and large quantities depending on your needs. This scalability is especially beneficial for businesses that face seasonal demand fluctuations or volatile market conditions.
- Quality assurance: Reputable OEM manufacturers have established quality control processes to ensure that the products they produce meet the specifications of both their brands and regulators. This contributes to consistent product quality and lowers the risk of defects or recalls.
- Faster time to market: Collaborating with an OEM manufacturer can significantly reduce the time it takes to bring a product to market by reducing the time for assembling and testing the production line, as well as helping to speed up the manufacturing process due to the massive yield provided by the OEM manufacturer, allowing the brand company to launch its products more quickly.
What to concern when searching for an OEM manufacturer?
Several important factors should be considered when looking for an OEM manufacturer to ensure a successful partnership and the production of high-quality products. Here are some important considerations to bear in mind.
- Experience and Expertise: Look for an OEM manufacturer who has a track record of producing similar products to the ones you want to make. Experience in your industry or with similar technologies or techniques ensures that they understand your needs and can meet them.
- Quality Standards: Examine the manufacturer’s certifications and quality control processes to ensure that they comply with industry standards and regulations. To maintain consistent product quality, a reputable OEM manufacturer should have stringent quality assurance procedures in place.
- Production Capacity: Examine the manufacturer’s capacity to ensure it can handle your desired order volume. Consider whether they have the necessary resources, equipment, and workforce to meet your production needs. Also, adequate OEM manufacturers can accommodate changes in production requirements, design modifications, or adjustments in order volumes.
- Intellectual Property Protection: If your product contains proprietary technology or designs, make sure that the OEM manufacturer is willing to sign non-disclosure agreements (NDAs) and respects the brand’s intellectual property rights.
- Sustainability and Compliance: Assess the manufacturer’s commitment to legal compliance, environmental sustainability, and ethical practices. Ensure they comply with relevant manufacturing, environmental, and labor regulations.
- Location and Logistics: Consider the location of the manufacturer, especially if you intend to visit the facility or if proximity to your market is critical for shipping and distribution efficiency.
- Prototyping and Sampling: Prototypes or samples of the products you intend to manufacture should be requested. Also, before committing to a more extensive production run, you need to be able to assess the manufacturer’s capabilities, product quality, and attention to detail.
- Cost and Pricing: While cost is an important consideration, it should not be the only one. Obtain detailed quotes from multiple manufacturers and compare pricing structures. Consider the overall value as well as the cost-quality proportionality.
Pharmaceutical OEM Manufacturing in Thailand
OEM manufacturing plays an essential role in Thailand’s pharmaceutical industries following the role of Thailand as a “medical hub” in Southeast Asia that expands plenty of domestic medicine supplies both for original drugs and generic drugs. Meanwhile, many multinational pharmaceutical companies act as agents for the distribution of their products while not having manufacturing capacity for their original drugs in Thailand. Also, many generic drugs face the limitation of their manufacturing capacity due to increasing demand for generic over-the-counter drugs that also need to share the manufacturing capacity with them.
Despite the fact that there are significant barriers to entry due to the high investment required to establish new factories while meeting strict standards. As a result, Thai pharmaceutical OEM manufacturers bridge the gap for both “international” and “domestic” brands, providing manufacturing capacity for both original and generic drugs for brands to expand their share in Thailand’s growing pharmaceutical markets. Currently, there are plenty of pharmaceutical OEM manufacturers that meet international pharmaceutical manufacturing standards currently available for further production capacities.
Seven Stars Pharmaceutical, Best OEM Pharmaceutical Manufacturer in Thailand
Seven Stars Pharmaceuticals is one of the leading pharmaceutical OEM manufacturers in Thailand that are currently certified under GMP PIC/S, SGS International, and ILAC-MRA. Providing highly cost-effective manufacturing capacity for products with constant quality and safety, Seven Stars Pharmaceutical is being selected for manufacturers of various pharmaceutical products for both domestic and international brands.
Seven Stars Pharmaceutical currently offers a manufacturing solution as both contract manufacturing using your own formulas of your original drugs, or our available Thai FDA-certified formula of generic drugs, and as Original Design Manufacturing (ODM) with one-stop services from concept consultants, product development, product registration for approval and certification from local regulators, manufacturing, and distribution of final products in forms of conventional and sugar-coated tablets, effervescent tablets, soft and hard gelatin capsules, solutions and suspension liquid drugs, jelly strips, powder sachets and bottles, metered dose inhalers, ointment, external-use cream, and gel.
Also, Seven Stars Pharmaceutical is not only capable of manufacturing various types of pharmaceuticals, but we are also able to manufacture veterinary drugs, vitamins and supplementary, cosmetics, and consumer products that include active pharmaceutical ingredients such as soap, toothpaste, and mouthwash.
If you are currently searching for manufacturers of pharmaceutical or health products in Thailand, we recommend you contact our sales at Seven Stars Pharmaceutical through firstname.lastname@example.org or phone number +662 420 3887 and 88.
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