CRAMS: In addition to allowing companies to focus on core competencies, in contract manufacturing we offer numerous other advantages over in-house manufacturing, including lower costs, flexibility, access to external expertise and reduced capital.

Even with solid assumptions, it may be a struggle to achieve the hoped-for benefits. That's largely because it's difficult to manage complex relationships. Ideally, the parties would create perfect plans that would make it possible to manage the relationship.

Here we explain how businesses can do this by rigorously assessing when and why to use contract manufacturers, setting the appropriate working model and developing an effective organization.