Achieving total lowest cost in outsourcing is rarely achieved by selecting the contract manufacturer with the lowest unit price. Instead, it often is the result of selecting the contract manufacturer with the best focus on eliminating non value-added cost through well-defined processes and efficient commercialization strategies. This latter type of contract manufacturer is often identified during the plant tour phase where audit teams can see how the contract manufacturer has managed programs of similar manufacturing technology, size and scope.

Areas where contract manufacturer efficiency or expertise improves outcomes include:

• Product development
• Product launch
• Manufacturing capabilities
• Logistics support
• Continuous improvement
• IP Protection.