- What is contract manufacturing?
- Advantages of contract manufacturing
- Services offered by Hendel
- Hеndel's products
- Advantages of working with Hendel
- Three more reasons to work with Hendel
What is contract manufacturing?
Today, contract manufacturing is considered one of the most profitable ways to produce branded goods. It is usually chosen by small and medium-sized businesses.
The reason for this is the increasing competition on the market of cosmetic products. In such circumstances, purchasing expensive equipment, renting production spaces and staff training will make businesses lose money. Alternatively, manufacturing of products using the capacity of an independent manufacturer is the most profitable way to quickly bring your product to market.
Manufacturers that provide production services fall into two categories:
- Those in charge of a part of the manufacturing process;
- Those that provide their customers with a full production cycle.
Outsourcing a part of the manufacturing process
When turning to several companies that will be in charge of only a part of the production process, you should take into account the following:
- If one of the outsourced companies fails to meet the deadlines at a certain stage, the whole process may be significantly slowed down.
- The outsourcer will have to manage and monitor the process and make sure each contact manufacturer fulfils their obligations at every stage.
- Production and transportation costs may increase significantly.
Full production cycle
What to expect when you cooperate with a manufacturer who offers a full production cycle?
- All you need to do is express your wishes.
- The manufacturer will develop the formula of the cosmetic product, produce prototypes, create packaging design and prepare all necessary documents.
- There is no need to negotiate deadlines and monitor the fulfillment of obligations by different companies.
- As a result, the manufacturer provides the finished product to the company.
This way of cooperation is convenient and profitable. Especially if the manufacturer fulfills its obligations in full and is ready to provide a detailed activity report at any stage. Naturally, such manufacturers have been on the market for a few years and value their reputation.
One of the leaders in the development and production of beauty products is Hendel. This dynamically developing company understands that the market of dietary supplements will keep growing and developing. Therefore, products must meet the highest standards to remain competitive.
The global cosmetics market is growing at a rate of 6.4% per year. Experts believe that the trend will continue, because the most avid cosmetics consumers are women aged 18 to 50, and they comprise more than 48% of the world's population.
Advantages of contract manufacturing
When producing beauty products under its own brand, a company or an entrepreneur may face a number of difficulties.
- Firstly, they will have to pay high production costs (equipment, premises, raw materials, personnel).
- Secondly, they may face difficulties when preparing the necessary documentation for product certification.
- Thirdly, the timing of the product launch may shift. In the absence of sufficient experience, you can miss some details, and the release of the product may be postponed indefinitely. This would entail additional financial costs and jeopardize the product's market entry.
Considering all these difficulties, the advantages of contract manufacturing are obvious.
You can focus on marketing
This is considered one of the most obvious benefits of contract manufacturing. After all, it is important not just to release the product, but also to promote it on the market and make it stand out among competitors. It is also crucial to boost sales, which would be impossible without a well-designed marketing campaign.
It would be much easier if you entrusted the technical aspects (product development and production) to professionals who have available production facilities. Thus you free up the necessary time and money to promote the brand.
Reducing and managing production costs
When manufacturing products using its own resources, the company has to have:
- Its own production facilities
- Reliable equipment
- Qualified specialists
- Trained personnel
- Reliable suppliers of raw materials
- Unique formula
- Original packaging
For all this, it is necessary to allocate considerable funds and hope that the product will eventually pay off. But there are always risks that can be minimized if you resort to contract manufacturing. This will help you manage costs effectively. If the costs exceed the expected amounts, you can simply change the contractor. At any case this option is much better than optimizing costs and looking for cost reduction mechanisms in your own company.
This can be avoided if your company chooses Handel as its contract manufacturer. Firstly, there is no need to invest in equipment, purchase materials, hire personnel, etc. Secondly, Hendel calculates all costs in advance and provides an estimate, as well as indicates the deadlines in the contract. So the additional costs during the production process will be eliminated.
Fast product launch
Contract manufacturing speeds up the process of bringing new products to the market. Independent formula development, production and certification of the product can take you a lot of time. Sometimes it takes several months, and in some cases, several years.
A contract manufacturer, seeking to preserve its reputation, is interested in fulfilling the order quickly, because it competes with other contract manufacturers. As a result, your product can appear on the market a few weeks after the conclusion of a manufacturing contract.
You can quickly close the project
Contract manufacturing leaves the customer an escape route. If the product is rejected by consumers for some reason, the project can be quickly closed and the costs will be minimal because the risks are distributed among production participants.
Services offered by Hendel
Product registration and certification
Many years of experience allow Hendel to deal not only with standard orders, but also with one-of-a-kind tasks, if required by the customer.
Certification of cosmetics is a time-consuming procedure involving many pitfalls. For example, it is quite difficult to determine whether a cosmetic product has a health-promoting effect. However, this needs to be done, and if it does have this effect, then some additional tests and registrations are needed. If you don't want to miss anything, it is better to entrust the procedure to professionals.
In general terms, the registration process includes the following steps:
- Formula development.
- Obtaining a certificate for the formula.
- Purchasing high-quality raw materials (they must also meet all regulatory requirements).
- Production of test samples; product certification testing.
- Preparation of technical documentation.
- Preparation of documents for registration authorities based on the tests that have been carried out.
- Passing of all stages of registration in state bodies.
- Obtaining the Certificate of State Registration of the product.
Hendel has ready-made formulas of cosmetic products. However, its experts can develop a completely new formula in accordance with the wishes of the customer.
In any case, Hendel uses only natural ingredients in the production of beauty products:
- Medicinal plant extracts
- Natural vegetable and essential oils
- Fruit acids
Hendel works with reliable suppliers who provide only natural raw materials of the highest quality and are ready to confirm it with documents. These ingredients are stored in a warehouse that complies with Sanitary Regulations and Norms. This makes it possible to change the formula by adding one or more ingredients without stopping the production process.
In addition to its main function, packaging performs one more task - it is an advertisement in itself, acting as an effective tool for product promotion. That's why packaging design is so important and you should delegate its creation to professionals. For the buyer, the packaging, first of all, should correspond to their idea of the product. Therefore, the designer should understand what is inside. The best solution is to entrust the development of your product's packaging to Hendel's designers. Work in close cooperation with the production department, they will design the ideal packaging for the product in accordance with the wishes of the customer:
- Can with dispenser;
The customer will be offered several options of packaging design. Once the design is approved, Hendel starts the production of the entire batch.
Hendel's facilities include two cosmetic production lines operating simultaneously. This allows the company to cooperate with several customers at a time and meet the needs of every customer. Each line includes:
- Melters. This equipment allows to quickly melt solid or frozen ingredients of any origin and keep them in a molten state at a predetermined temperature.
- Vacuum-homogenizing machine, which allows to produce a homogeneous product.
- Cooling boilers, capable of simultaneously mixing and cooling the cosmetic mass.
- Stainless steel boilers and mixers.
- Melters and cookers.
- Sterilizer, which allows to use different processing technologies to destroy pathogenic microorganisms.
It is almost impossible for non-professionals to take into account all technological aspects of cosmetics production.
- Since the finished product must retain its properties when stored in a wide temperature range, the combination of ingredients should be very well-balanced.
- None of the ingredients is added to the final product without being processed in a certain way, which may include melting, grinding, filtration, cooling, emulsification, etc.
- It is also important to choose the right process at each stage of production: hydro-mechanical, mass-exchanging, thermal, ect. A slightest defect or mistake at any stage will prevent the end product from having the desired effect. It may fail to correspond to its characteristics or meet the requirements.
Hendel's production capacities allow it to simultaneously produce:
- up to 30,000 units per day;
- up to 1,000,000 units per month.
All production lines are automated and controlled by computers. This eliminates the “human factor” and prevents production faults.
Hendel produces more than 50 types of beauty products in the top 7 categories:
- Facial skincare products;
- Children's cosmetic products;
- Body care products;
- Hair care products;
- Oral care products;
- Personal hygiene products;
- Makeup products.
If the customer is not sure which category or product form to choose, Hendel's experts will be happy to help them with the choice.
Judging by the global trend, cosmetic products in the form of creams, gels, ointments, etc are curently in the highest demand.
The growing range of cosmetic products offered on the market makes businesses not only focus on the competitive advantages of the product, but also compels them to comply with all requirements. The list of requirements is updated almost daily.
End products must comply with all safety regulations proposed by state bodies. Unfortunately, not all companies offering contract manufacturing services meet all these requirements. As a result, the customer may be unable to certify the finished product and the product may be banned. Hendel complies with all beauty product production requirements and has all the required certificates.
Advantages of working with Hendel
Full production cycle
Hendel offers its customers a full production cycle, from idea to serial production. All the customer needs to do is contact the company and describe what kind of cream, scrub, shampoo or some other product they want. Within 24 hours of the initial consultation with experts, the process of product development begins. It comprises several stages:
1. The scope of work is determined. It contains the requirements of the customer, as well as the preliminary terms and conditions, including deadlines. It also indicates the product's category (the production technology will depend on it), as well as its form, desired composition, action, etc. When preparing technical requirements, it is important to take into consideration all aspects of the production technology and be sure to include the cost of raw materials in the estimate.
2. Formula creation. Once the scope of work is determined, Hendel's specialists start developing the formula in modern laboratories. In some cases (for example, when the product needs to be launched as soon as possible), the company offers an existing formula with an option to add some additional ingredients.
3. Prototype development and testing. Once the sample of the cosmetic product is ready, it is tested in the laboratory (Hendel does not test products on animals!) This is necessary for its certification. Besides, it allows to make sure that the product meets all the necessary requirements.
4. Designing the packaging. While the product's prototype is produced, designers develop the packaging. Based on the customer's requirements, several packaging designs are offered to choose from.
5. Refinement of technical requirements. Once the samples are tested and checked for compliance with the official requirements, you can make adjustments to the technical requirements. For example, the formula or production technology may be changed. Also the production timing and volumes are specified at this stage. The exact cost of the order is calculated.
6. Serial production. Serial production of a cosmetic product is initiated only when all details are clarified. Since Hendel cooperates with both large customers and small and medium-sized businesses, the minimum batch size is 5000 units.
7. Certification of the finished product. Hendel prepares the documents for certification and registration of the product and sends them to the state authorities. The customer receives the certificates.
Team of professionals
Hendel employs biotechnologists, chemists, engineers, ecologists, designers and other specialists with a relevant higher education degree and extensive experience.
Process control engineers choose the production equipment (sometimes, both production lines are used) and maintain all technical documentation. Also, the engineers choose the necessary methods of product quality control and monitor the operation of the equipment.
Chemical technologists develop the formula and control the entire process. Once the samples are produced, these specialists carry out quality control.
Designers create packaging in accordance with the requirements of the customer on the one hand and focusing on global trends on the other.
Hendel employs only top professionals. All of them have a relevant higher education degree and extensive experience.
Hendel guarantees full transparency of the manufacturing process to its partners. This means that all the processes, timings and costs are indicated in the contract, and the customer has access to every stage of production. This is possible because there are CCTV cameras in the production facilities and the manufacturing process is recorded around the clock.
The quality of raw materials
To create contract products, Hendel uses only natural ingredients of the highest quality. Raw materials are purchased from time-tested manufacturers who are ready to provide the documents confirming the high quality of the supplies.
Three more reasons to work with Hendel
Special approach to each client
Hendel is happy to offer both existing and brand-new product formulas. Based on the customer's requirements, Hendel's technologists will develop a unique formula and packaging design. In both cases, the client will be offered to choose from 3-5 samples. And as soon as the customer makes the choice, the selected option is launched into mass production. Hendel's production facilities allow it to produce both large and small batches of products (starting from 5,000 pieces).
Adherence to deadlines
The deadlines set for each stage of production of the product are specified in the contract. Hendel values its reputation and, therefore, fully complies with the contract's deadlines. Strict compliance with deadlines in the company's priority.
Hendel's manufactured products are sold worldwide. The company cooperates with customers and suppliers from more than 80 countries. Thus, Hendel has experience in registration and certification of goods in different countries.