Chemicals outsourcing: what are my options?
When deciding to outsource your chemicals it is crucial to choose the outsourcing method that best suits your company needs.
The most frequent varieties of chemical outsourcing are:
- Licensed manufacturer – chemical products manufactured under a long-term licence. The manufacturer buys raw materials on own account and bears risks of selling finished products.
- Contract manufacturer – manufacturer acts as agent, producing chemical (end or sub) products for the principal who guarantees to buy outputs. The agent bears risks of buying and stocking raw materials/components.
- Toll Manufacturer – Principal buys the raw materials/components although these usually pass direct to the agent. Buying and selling risks lie with the principal.The advantage of outsourcing is that chemical enterprises can focus their efforts and time on research and development, new markets, and building key relationships with customers while the outsource partner can completely focus on improving the production methods and processes.
Want to discuss if outsourcing could be interesting for your business? Contact AD Productions today!
