contract manufacturing or using spare capacity actually means using the idle capacity and capabilities of an organization, company or other source.
In this article, we are trying to explain the concept of contract production to introduce you to the opportunity to earn a lot of profit in cooperation with Aghele Saffron.
Join us to introduce you to one of the easy ways that paves the way for you to export and sell saffron.
What is contract manufacturing or use of spare capacity?
In general terms, spare capacity refers to the amount of resources, equipment, labor or other resources that are available in an organization but are not currently being used.
contract manufacturing
The use of empty capacity can be done in two ways:
In this case, an organization (usually a company) contracts with another organization (usually another manufacturer) to produce a product for itself.
In this way, the organization uses the production capacity and ability of another organization and does not need new investments and equipment.
This method is usually used when an organization temporarily needs to produce a product, but does not have the ability to do so.
For example, if you want to start exporting or domestic supply of saffron with your own name and logo, but you don't have enough production resources, you can start contract production with us. In the meantime, you will have many benefits.
Some of them are:
- Using the standard and I.R FDA marks of Aghele saffron
- You can export the product to all parts of the world
- You can officially sell your saffron in all grocery stores
- Possibility of production with your own brand
Resource Sharing:
In this case, one organization (for example, a company) uses the resources or facilities of another organization (such as production capacity, labor, equipment, etc.) on a contractual basis.
This can be in the form of a business agreement or formal collaboration with another organization. This method allows organizations to use other resources without additional investment and take advantage of the empty capacity of another organization.
In general, using spare capacity is a strategic solution that allows organizations to use their resources optimally and reduce costs and production time.
What are the benefits of contract manufacturing?
contract manufacturing has several advantages. In the following, I will mention some of the advantages and benefits of this method:
1. Reducing costs:
contract manufacturing allows the organization to use the production capacity and expertise of another organization without the need for investment and high costs to purchase equipment and facilities.
As a result, production, development and maintenance costs can be significantly reduced.
2. Increasing flexibility and speed:
By using contract manufacturing, the organization can respond quickly and more flexibly to market needs and customer demand.
If there is a possibility of product customization and high production speed, the organization is able to better respond to the competition in marketing and product delivery time.
3. Access to expertise:
Contract manufacturing allows an organization to take advantage of the expertise and experience of another organization.
This means access to technologies, skills and high technical knowledge that may not be available within the organization.
This expertise helps the organization to improve the quality of its products and increase competitiveness.
4. Focus on main activities:
By using contract manufacturing, the organization can focus more on its core and strategic activities.
Instead of doing all the processes and producing your products, the organization can transfer a part of the activities to another organization and dedicate its time and resources to discussing the development and improvement of the main activities.
5. Risk reduction:
By using contract manufacturing, the organization can share the risks related to production, supply and marketing jointly with another organization.
If the product market changes or customer requests change, the organization is able to quickly implement changes and reduce existing risks.
The benefits of contract manufacturing depend on the specific conditions of each organization and must be evaluated according to various factors such as the needs, goals, resources and financial conditions of the organization.
Steps to use empty capacity
The steps of using the empty capacity can be summarized as follows:
- Preliminary research and identification of needs and final customers: In this stage, the needs and demands of final customers are identified by researching the market.
- Determining goals and planning for the use of empty capacity: This step includes setting goals and planning for the use of empty capacity. Planning includes determining the target market, strategies, and budgeting.
- Registration of the desired product brand: In this step, the desired product brand is registered, which helps to establish the identity and recognition of the product.
- Negotiating with the production unit and establishing communication: In this stage, the negotiation with the production unit takes place in order to determine the conditions and contracts necessary to use the empty capacity.
- Contract with the production unit: after negotiations, the contract between the brand owner and the production unit is drawn up and signed to determine the conditions of cooperation.
- Obtaining the manufacturing license and entering the production line: In this stage, the manufacturing license is received for the production of the product and the production process begins.
- Marketing and selling the product in the market: After the production of the product, the process of marketing and offering the product in the market is done to offer it to the final customers and sell it.
By doing these steps, the organization can use the empty capacity of a production unit and market its product. Of course, each step may require research, planning, and strategizing to achieve desired results.
Documents for contract manufacturing
To request to use the empty capacity of Saffron Aghele, you must prepare a set of documents and information.
These documents include the following:
Manufacturing and Manufacturing Permit: To request a change in factory production capacity, you must first review your current manufacturing and manufacturing permit to find out which sections need to be updated.
Then you can submit your request to the industry, mining and trade organization or the waste licensing organization of the relevant province.
Production Schedule: You must prepare a production schedule for the desired time period.
This program includes the products you produce and the daily, weekly and monthly production volume.
Factory Space: A map of the factory space and fire, maintenance and safety information should also be provided.
Manpower: You must provide the number of employees and their number in the factory.
Equipment: You must provide a list of equipment used in the factory, along with their update document and their pictures with identification number and ownership ID.
Environment: You must provide biological and chemical analysis of the plant, social-environmental impact reports and environmental exploitation permits.
Budget: You must identify the financial resources needed to review, approve and implement your plan.
Please note that it may also be required to provide some information such as import certificates for machinery and equipment, certificates of ownership and verifiers, and explanations of how the factory was built and the amount of natural resources used. For more information, it is better to contact the relevant organization.
Getting the benefits of Aghele saffron
Aghele Saffron has been working in the field of exporting saffron and other agricultural products for 8 years. Aghele saffron production and export group has started to cooperate with natural or legal persons who wish to contract production in order to expand their business and also to use the empty production capacity.
To get more information and use the benefits of cooperation with Aghele Saffron, contact our experts.
Final word
You can contact these numbers to use contract production with Aghele saffron.
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