In contract manufacturing, customers receive a unique product under their brand for the optimal price, says Canyon.
One of the great achievements of the global labour division is that of contract manufacturing, where one business generates ideas and another brings them to life. Why even large businesses choose contract manufacturers, what are the economics and benefits of such a partnership?

In-house manufacturing VS contract manufacturing

According to BCC Research, the global contract manufacturing market may grow from $2 trillion in 2018 to $2.7 trillion in 2023, with a compound annual growth rate of 6.6%.

In contract manufacturing, customers receive a unique product under their brand for the optimal price, in the necessary quality and quantity, and the manufacturer earns money on the production, without the risk of unsold goods. Many companies have also set up their own quality control schemes for their products. This format of manufacturing is particularly attractive for companies engaged in the electronics and household appliance industry.

"Setting up their in-house production, ensuring the stability of technological process, training specialists, and introducing production technologies is a risky and time-consuming process. It is possible to minimize entrepreneurial risk and still manufacture products in a modern facility under contractual relationship with a contract manufacturer, combining control of the process and quality of products from both the factory and the customer", comments Dmitriy Romanenko, Business Development Director of Canyon Accessories.

A company concerned about the reputation and image of their products as being reliable and of high quality must pay particular attention to the work of contract manufacturers, ensuring not just better prices, but also a responsible approach, accurate compliance with technical documentation with use of the latest technology and adherence to a culture of production.

At present, Canyon Accessories, which launched operations in the Netherlands in 2003, is one of the electronics manufacturers to succeed in adopting this production concept. In 20 years it has grown into a fully-fledged electronics brand with 16 offices in Europe, and products selling in more than 30 countries.

The Canyon brand devices are developed in its European offices and manufactured in China, where mobile and PC accessories, smart gadgets and gaming solutions are created; the team includes Quality assurance and Quality control, product management and design departments.

Proprietary quality control system by Canyon Accessories

To supply a product with a consistent quality from batch to batch is a large and time-consuming task for each brand.

"A brand has to go through an arduous process of building a partnership, establishing and drawing up customer requirements, and creating a rigorous system for monitoring their fulfilment. Clearly structured cooperation motivates manufacturers to maintain long-term relationships with customers, which is the key to their sustainable development," says Dmitriy Romanenko, Business Development Director at Canyon Accessories.

Ensuring internal partner commitment, Canyon Accessories has also established proprietary three-step quality control system.

Prior to the start of mass production, all devices undergo more than 30 trials to ensure comprehensive testing under real-life conditions, including tests for reliability, compatibility with other devices, functionality, climatic testing and more. Another purpose of these trials is to plan further upgrades to the product lines with enhanced technical and operational features.

The CE & RoHS certification of Canyon branded devices further validates their quality.

Canyon Accessories engineers conduct a mandatory periodic manufacturing process control, as well as a post-production check, performed upon the completion of all manufacturing stages. Such approach enables early detection of hidden assembly defects, uncoordinated component replacements and any other inconsistencies with the technical documentation.

When it comes to mobile and PC accessories, the devices used by consumers almost daily, it is crucial to continue quality assurance once the product is in their hands. Even after the product reaches the final consumer, the Canyon brand team constantly monitors product quality information from partners and open marketplaces, assesses customer satisfaction based on their feedback, and analyses the most frequent service requests.

Find out more information at https://canyon.eu/