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con­tract manufacturing

For devel­op­ers and mar­keters of devices and machines, we can take over the com­plete pro­duc­tion and assem­bly and thus become their “fac­tory”.

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What is Con­tract Manufacturing?

Con­tract man­u­fac­tur­ing involves out­sourc­ing the entire man­u­fac­ture of a prod­uct (e.g. device, appa­ra­tus or machine).

The con­tract man­u­fac­turer assumes respon­si­bil­ity for pro­duc­tion, assem­bly, pur­chas­ing, logis­tics, test­ing, doc­u­men­ta­tion and the entire sup­ply chain man­age­ment of the prod­ucts con­cerned. In addi­tion, after-sales activ­i­ties (e.g. spare parts, ser­vice) can also be trans­ferred to the con­tract manufacturer.

In some cases, the term “turnkey man­u­fac­tur­ing” is used for con­tract man­u­fac­tur­ing. In Switzer­land, one also speaks of “sys­tem construction”.

Advan­tages Con­tract Manufacturing

Thanks to Con­tract Man­u­fac­tur­ing, the client can focus on his core com­pe­ten­cies such as the devel­op­ment, sales and mar­ket­ing of his prod­uct. In doing so, he can also make a sig­nif­i­cant part of his fixed costs vari­able — man­u­fac­tur­ing costs are only incurred if the prod­uct is actu­ally demanded and sold. As a result, con­tract man­u­fac­tur­ing is par­tic­u­larly pop­u­lar with star­tups, but also in cycli­cal markets. 

Graphic: Vari­abi­liza­tion of costs

If a com­pany pro­duces and/or assem­bles its own prod­ucts, even a small drop in sales can lead to a loss, depend­ing on the pro­por­tion of mate­r­ial costs. 

contract manufacturing vs insourcing by swissfactory group



Stop­pani Con­tract Man­u­fac­tur­ing AG is a lead­ing con­tract man­u­fac­turer in Switzer­land, which has already achieved annual sales of > CHF 250 million.

She has a very broad expe­ri­ence in the indus­try. For many years, it has been serv­ing high-tech indus­tries such as medtech, semi­con­duc­tors, vac­uum, optics and aero­space, as well as tra­di­tional sec­tors such as the mechan­i­cal engi­neer­ing and auto­mo­tive industries.

Their infra­struc­ture is mod­ern and highly flex­i­ble. Thanks to one of Switzerland’s largest clean­rooms, class 7 (ISO 14644–1), the high require­ments for pack­ag­ing and assem­bly processes in the semi­con­duc­tor, high-vac­uum and medtech indus­tries, for exam­ple, can also be met.

Qual­i­fied mecha­tronic engi­neers and assem­bly spe­cial­ists, com­pre­hen­sive know-how in sup­ply chain and project man­age­ment, a world­wide sup­plier net­work and con­sis­tent use of lean meth­ods allow the SwissFactory.Group to imple­ment com­plex assem­bly projects with max­i­mum reli­a­bil­ity and short lead times.

SwissFactory.Group is con­stantly devel­op­ing its com­pe­ten­cies — with a strong focus on dig­i­tal­i­sa­tion, speed & sus­tain­abil­ity. For exam­ple, cus­tomers are now offered the pos­si­bil­ity of set­ting up direct inter­faces between IT systems.

A con­tract man­u­fac­tur­ing project always has points of con­tact with engi­neer­ing and with var­i­ous man­u­fac­tur­ing tech­nolo­gies at the com­po­nent level. If nec­es­sary, these com­pe­tences can be drawn on at any time within the frame­work of the SwissFactory.Group. How­ever, there are no oblig­a­tions to pur­chase ser­vices from Group com­pa­nies (e.g. pur­chase of components).

cleanroom assembly by stoppani swissfactory group copy

Photo: clean­room Stop­pani Con­tract Man­u­fac­tur­ing AG