What Are Ayurvedic Cough Syrup Manufacturers In India, And How To Choose The Best?

What Are Ayurvedic Cough Syrup Manufacturers In India, And How To Choose The Best?

If one wants to have an ayurvedic manufacturing business without owning a manufacturing unit, the best option is to tie up with third-party manufacturing. This will reduce paperwork concerning loan licensing and spending capital on plants and machinery. 

Let’s see how third-party manufacturing like top cough syrup manufacturers in India works.

What is third-party manufacturing?

Let’s assume there are two companies, company ‘A’ and company ‘B.’ Company A ties up with a third-party manufacturer, company B. So, through this process, company B will be using its manufacturing unit to produce company A’s products.

Company A will be mentioned as the marketer and company B as the manufacturer in the product label.

Factors to consider when hiring a third party manufacturer

Below are some necessary steps and factors that should be considered when opting for third-party manufacturing.

Searching for the third party manufacturer

The most common place to search for such manufacturers is through B2B portals or search engines. Sometimes one can also find the advertisement of Ayurvedic Third-party manufacturing companies in the medicine and health section of daily newspapers, magazines, etc. Check the information to find their contact details.

Steps before finalizing the contract

Before finalizing the contract with a third-party manufacturer, always shortlist at least 3-4 ayurvedic manufacturers. Contact them and get product quotation details. Ask them about their rates, terms, and conditions and check the quality of their manufactured goods. 

Use the data collected from all the shortlisted manufacturers to compare them. Apart from the rates, check whether the company is licensed and certified.

Finalizing the contract

Once the ideal ayurvedic cough syrup manufacturers in India are confirmed, prepare the necessary documents and finalize the contract by signing an agreement. The agreement should clearly state all the terms and conditions, benefits to both parties, payment terms, and delivery terms. These are some standard clauses; one can add other mutually accepted clauses. 

Payment terms and conditions

The most common scenario in third-party manufacturers is that they take around 20-30% of the payment before the manufacturing starts as an initial investment. The remaining amount is taken after manufacturing all the finished goods.

Delivery time

This is equally as important as the rate charged by the manufacturing company. One needs to make sure that their inventory is always stacked and there is no delay from the manufacturing side. So check with the third-party manufacturer how many days they require to finish a set amount of orders. 

Usually, it takes approximately 25-35 days to make the delivery of new manufacturer products. Some even provide faster services by delivering the goods in 15-20 days. Choose a manufacturer like Lezaa Ayurveda, whose delivery schedule matches the company’s inventory turnover.

Once the manufacturing process is completed, clear the payment dues of the manufacturing company. Sometimes the payment amount may differ from what was discussed based on the price and quantity of raw materials used.

After everything is settled, the manufacturing company will deliver the products to the marketing company using the logistics channel that was decided in the agreement. And this ends the entire third-party manufacturing process. All that is left is to sell the products to the desired customer base.