Pros and Cons of Contract Manufacturing | AYO Labs
Contract manufacturing allows brands to outsource product production to third-party manufacturers like AYO Labs, offering several advantages: Pros: Cost-Effective: Saves on infrastructure, equipment, and labor costs. Scalable: Easily adjust production volumes from 250 to 2 million units/month. Expertise: Access to advanced technology, R&D, and regulatory knowledge. Faster Time-to-Market: Quick turnaround, often within a week. Focus on Core Business: Lets brands focus on branding and sales while manufacturers handle production. Cons: Limited Control: Less direct oversight of production. Third-Party Dependency: Quality and timelines depend on the manufacturer’s reliability. IP Risks: Potential exposure of formulas/designs, but can be mitigated with strong contracts and confidentiality clauses.