Contract Manufacturing

Supply chains today have evolved to include extended manufacturing facilities provided by contract manufacturers (CM), also known as co-packers in the food industry. This manufacturing model offers significant capacity expansion for companies, but it also introduces certain risks. One such challenge is ensuring that contract manufacturers have adequate availability of raw materials. However, this task becomes even more difficult because contract manufacturers lack visibility into long-term demand, while the parent company lacks visibility into the inventory details of the contract manufacturing company.

This situation can often result in an inventory shortage, where the contract manufacturer does not have enough inventory to continue production. Consequently, the responsibility for ordering raw materials on time still lies with the parent company. Communication gaps, regarding the current inventory and forecasted demand, can lead to unexpected inventory shortages and production halts.

To address these supply chain challenges related to contract manufacturing, TPSynergy offers a comprehensive system that effectively manages these complexities.

Order Management

TPSynergy’s order collaboration system manages the purchase order orchestration and collaboration process. Contract manufacturing orders are manged through the entire life cycle

Manufacturing Milestones

Current status of each order inside the contract manufacturer facility is visible to the outsourcing company. This adds tighter control in the supply chain and reduces risk.

Advance Ship Notice (ASN)

Electronic communication of shipment details in advance removes unwanted surprises and panic. In addition, warehouses can be prepared ahead of time.

Inventory Visibility

If the contract manufacturer runs out of raw material or sitting on top of excess inventory – both are bad. TPSynergy provides Inventory visibility to avoid these situations

Demand Visibility

Forecast collaboration with the contract manufacturers enables them to see the upcoming demand for manufacturing capacity and plan for the capacity.

Capacity Collaboration

As the same contract manufacturer might be used by many OEM, it is important to know how much of capacity is available at any time. TPSynergy capcacity collaboration enables sharing of this information.

How does it benefit your supply chain?

Reduces Dock to Stock time as goods can be received with a few keystrokes
Appropriate corrective actions can be taken when there are shortages or defects detected during receiving
Provides In-Transit visibility. Once goods are received, the supplier is able to see the receipt details in TPSynergy
Modern WMS systems are able to allocate storage spaces even before the shipment arrives due to Advanced Shipment Notices (ASN)
It all matters for On-Time Delivery.

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Contract Manufacturing

How does it benefit your supply chain?

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