Liquid Contract Manufacturing vs In House Production Weighing the Benefits

Is your new supplement venture starting to take off? After securing funding, finding the target audience, and building some solid hype around the product line, the next step is to start the manufacturing process. 

This leaves supplement brands with a critical decision to make: should they stick with traditional in-house production or embrace the innovative approach of liquid contract manufacturing?

While it seems tempting to keep everything in-house, there are a few angles to consider when making this decision. Think about it this way: in-house production is like cooking at home and contract manufacturing is like hiring a professional chef for specialized cuisine. In this scenario, why not go with the expert that has a proven track record in the specialty? This same principle applies to manufacturing as well. 

Liquid contract manufacturing can provide some often overlooked benefits such as state-of-the-art technology, cost savings, and specialized expertise. Outsourcing your manufacturing isn’t just for large corporations either, businesses of all sizes can afford to take their production to an expert. 

In this guide, we’ll walk through some of the benefits of choosing in-house production versus outsourcing manufacturing. 

Advantages of Liquid Contract Manufacturing

Cost-Effectiveness

Outsourcing your manufacturing reduces the need to invest in machinery and infrastructure. It allows you to leverage the expertise of experienced manufacturers without hiring additional staff or having to spend any resources on your own manufacturing. Instead, you only have to pay a fee to your manufacturer without any of the traditional overhead of in-house hires. 

Many manufacturers also offer bulk production savings which can save money for businesses that plan on outsourcing large-scale productions.  

Quality Assurance

Liquid contract manufacturing gives you access to advanced technologies and adherence to stringent quality protocols that companies can spend years trying to perfect. By outsourcing manufacturing, you can benefit from a manufacturer’s experience and specialization in liquid supplement production without having to spend time and resources learning it yourself. 

Scalability

Outsourced manufacturing offers flexibility in scaling up or down based on demand. This provides you with a  quicker response to market trends and demands which can fluctuate swiftly. 

When you outsource manufacturing, you can also spend more time on tasks that grow your business. This means more time focusing on marketing, branding, and sales rather than production intricacies.

Expand Your Capabilities

A private-label manufacturer has experience serving a wide range of customers and have acquired an extensive library of manufacturing knowledge along the way. This can open your supplement line to more innovative formulations, ideas, and new concepts that you may not have considered originally. 

What About In-House Production? 

On the other side of the coin, in-house production gives you direct control over the entire production process. However, this requires substantial investment and can lead to inefficiencies if not managed expertly.

Going with in-house production also allows for better control over intellectual property. While this is certainly important, contract manufacturers often adhere to stringent confidentiality agreements. In most cases, you will not need to worry about intellectual property. 

Key Considerations in Making the Choice

Business Size and Objectives

Size and core objectives are important considerations when choosing between in-house or outsourced manufacturing. For instance, smaller businesses may find contract manufacturing more appealing if they can’t afford their own production resources. 

Cost Analysis

Make sure to complete an in-depth comparison of costs before making a decision. You should factor in any hidden costs with in-house manufacturing along with the long-term ROI that you’ll see down the line. 

Regulatory Compliance

Manufacturing supplements requires a wealth of expertise in regulatory requirements. If you are not very familiar with these, you should consider contract manufacturing instead. A private-label manufacturer will already have acquired many certifications allowing them to offer unique selling points for your formulas, such as organic, vegan, and gluten-free certifications. 

Timing and Market Responsiveness

If the ability to quickly respond to market trends is important for your business, you should go with a contract manufacturer. They are often able to respond to market changes and make adjustments quicker than in-house manufacturers. 

Get Private-Label Liquid Supplement Manufacturing for Your Brand

If you’ve reached the decision that outsourcing manufacturing is the smarter decision for your business, Yellow Emperor is here to help. With years of experience in private-label liquid supplement manufacturing, we can handle the production aspect of your business so you can focus on building and growing your brand. 

To learn more about working with our team for your liquid supplements, get a quote today.