How to start Third Party Manufacturing in detail

Things by Amit

7 Apr 202112:12

Summary

TLDRThe video script is a comprehensive guide for starting a third-party manufacturing business in the medical device industry. It emphasizes the importance of third-party verification and the need for a long-term business setup. The speaker, Amit, offers insights on market research, product selection, and the necessity of understanding the local market and doctor preferences. He discusses strategies for becoming a medical representative, managing inventory, and building a sales team. The script also covers marketing tactics, distributor management, and the importance of maintaining a consistent sales force for business growth. Amit advises on product combinations, pricing, and the potential challenges of inventory management, encouraging viewers to start their express domain business with experience and strategic planning.

Takeaways

🛠️ Third-party verification is essential in the manufacturing business to ensure product quality and reliability. It involves producing a product through another company's manufacturing process but marketing it under your own brand.
📦 Proper inventory management is crucial. Maintain a minimum stock level to prevent shortages and fulfill orders promptly. Monitor inventory regularly to adjust orders based on demand.
🌐 Building a strong marketing and distribution network is necessary. Hire experienced personnel with at least 5-6 years of experience in the field to effectively promote and manage the brand.
🏥 Conduct thorough market research by surveying doctors and retailers to understand the demand for specific products and their prescriptions in different areas.
🧪 Focus on manufacturing common and high-demand pharmaceuticals such as painkillers (paracetamol), antibiotics, anti-diabetics, and anti-hypertensive medications to ensure steady business growth.
👨‍⚕️ Build strong relationships with doctors by offering promotional materials, celebrating occasions, and maintaining consistent communication. This helps in improving product visibility and loyalty.
💼 For successful third-party manufacturing, selecting the right manufacturing partners and molecules (products) is critical. Ensure the chosen products align with market needs and company goals.
📊 Appoint area managers and regional managers to oversee the performance of medical representatives and ensure efficient market coverage.
🔄 Regularly hold meetings to discuss marketing strategies, sales performance, and stock management to ensure all teams are aligned and working towards common goals.
🌍 Expansion can be gradual, starting from local to district, then state-level, and eventually national and international markets. Focus on building a strong foundation before scaling up.

Q & A

What is the importance of third-party verification in the manufacturing industry as mentioned in the script?
-Third-party verification is crucial as it ensures the products manufactured by one company and marketed under another's brand meet the necessary quality standards and regulatory requirements.
What does the term 'express lane' refer to in the context of the script?
-The 'express lane' likely refers to a fast-track process for certain products or services, indicating a quicker route to market or a more efficient way of doing business.
Why is it necessary to have a minimum order quantity when dealing with manufacturers as per the script?
-A minimum order quantity is necessary to ensure cost-effective production runs and to maintain the financial viability of the manufacturing process for both the manufacturer and the business placing the order.
What are some of the challenges mentioned in the script when starting a business in the manufacturing sector?
-Challenges include obtaining third-party verification, dealing with the complexities of manufacturing, managing inventory, and establishing a strong marketing and distribution network.
How does the script suggest one should approach the selection of products to manufacture?
-The script suggests selecting products that are designed by the company itself and are in demand within the company's target area, emphasizing the importance of understanding the local market.
What role do medical representatives play in the business model discussed in the script?
-Medical representatives are crucial as they interact with doctors and retailers, gather information about product preferences, and help in promoting and selling the products to the medical community.
Why is it important to maintain a good relationship with doctors according to the script?
-Maintaining a good relationship with doctors is important because they can influence the choice of products used and prescribed, which can significantly impact the sales and success of a medical product business.
What marketing strategies are suggested in the script for promoting a new medical product?
-The script suggests hiring an experienced marketing team, investing in market research, and creating promotional materials to effectively promote the products to the target audience.
How does the script advise managing inventory for a manufacturing business?
-The script advises monitoring inventory levels closely, placing orders well in advance, and maintaining a minimum stock to avoid stockouts and to ensure a steady supply of products.
What is the significance of having a regional manager or area manager for a medical product business as mentioned in the script?
-Having a regional or area manager is significant as they oversee the operations within their region, manage the local team, and ensure that the company's strategies are effectively implemented at the local level.
What is the advice given in the script regarding the selection of distributors for a medical product business?
-The script advises selecting distributors who have a good track record and can provide terms that align with the company's needs, such as payment terms and promotional support.

Outlines

00:00

🧐 Understanding Third-Party Manufacturing in Pharmaceutical Industry

This paragraph delves into the intricacies of third-party manufacturing in the pharmaceutical industry, specifically focusing on the importance of third-party verification. It discusses the need for businesses to ensure the products they are marketing are manufactured by reliable companies. The speaker emphasizes the significance of market research, understanding the local market, and identifying the right products to market. The paragraph also touches on the challenges of managing inventory and the necessity of having a robust marketing team to promote the products effectively.

05:02

📈 Strategies for Marketing and Distribution in Medical Sales

Paragraph 2 focuses on strategies for marketing and distribution within the medical sales industry. It highlights the importance of selecting the right combination of products, understanding the market dynamics, and managing inventory effectively. The speaker discusses the role of marketing teams, the need for express personnel with experience, and the importance of setting up distributor networks. The paragraph also covers the aspects of promoting products to doctors, managing relationships with medical representatives, and the necessity of maintaining a consistent brand image.

10:02

🚀 Scaling Up: From Local to International Pharmaceutical Business

The final paragraph discusses the process of scaling a pharmaceutical business from a local to an international level. It emphasizes the importance of third-party verification and the need for businesses to have a clear understanding of their market and products. The speaker provides insights on how to manage inventory, the significance of monitoring product performance, and the necessity of regular meetings with marketing and product management teams. The paragraph concludes with advice on how to expand the business step by step, including the importance of experience and the potential for exporting products.

Mindmap

Keywords

💡Third-Party Verification

Third-Party Verification refers to the process where an independent entity validates and confirms certain aspects of a company's products or services. In the context of the video, it's crucial for businesses involved in manufacturing and exporting to ensure that their products meet quality standards. The script mentions that third-party verification is necessary for anti-third-party manufacturing, which likely means ensuring that the products are not counterfeit or substandard.

💡Manufacturing

Manufacturing is the process of producing goods through the use of labor, machinery, tools, and chemical or biological processing. The video script discusses various aspects of manufacturing, particularly focusing on the challenges and strategies for starting and scaling a manufacturing business. It emphasizes the importance of third-party verification in the manufacturing process to ensure product quality and compliance with standards.

💡Medical Devices

Medical devices are instruments, equipment, or software used in the medical field for diagnosis, treatment, or monitoring of medical conditions. The script touches upon the complexity of the medical device industry and the need for businesses to navigate regulations and standards. It suggests that third-party verification is particularly important for medical devices to ensure their safety and effectiveness.

💡Export

Export refers to the shipping of goods produced in one country to another country. The video script discusses the business of exporting products, highlighting the various methods and challenges involved. It mentions that third-party verification is a necessary step in the export process to ensure that products meet the standards required by the importing country.

💡Regulations

Regulations are rules or directives made and maintained by an authority to control certain behaviors or practices within a particular sphere. In the video, regulations are discussed in the context of manufacturing and exporting, emphasizing the need for businesses to comply with them to operate legally and successfully in the market.

💡Market Research

Market research is the process of gathering, analyzing, and interpreting information about a market, its customers, and its competitors. The script suggests that market research is essential for businesses, particularly in identifying the right products to manufacture and understanding the market dynamics, which is crucial for the success of a manufacturing business.

💡Inventory Management

Inventory management is the practice of overseeing and controlling the storage of goods. The video script highlights the importance of inventory management in a manufacturing business, especially in anticipating demand and avoiding stockouts or overstock situations. It mentions the need for strategies to manage inventory effectively to ensure business continuity.

💡Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The script discusses various marketing strategies, emphasizing the need for a strong marketing team and the importance of promoting products effectively to increase brand visibility and sales.

💡Distribution

Distribution refers to the process of making a product available for sale. In the context of the video, distribution is discussed as a critical aspect of getting manufactured goods to the market. It involves selecting the right distributors and setting up terms and conditions for product delivery and payment.

💡Product Management

Product management is the function within an organization focused on planning, developing, and launching a product. The video script mentions product management in relation to the strategies for managing a product's lifecycle, from development to market launch, and ensuring that the product meets customer needs and generates profit.

💡Compliance

Compliance refers to the act of conforming to a rule, such as a policy, standard, or law. The script emphasizes the importance of compliance with industry standards and regulations, particularly in the context of third-party verification, to ensure that products are safe, effective, and meet the required quality benchmarks.

Highlights

Discusses the importance of third-party verification in the manufacturing industry.

Mentions the necessity of express lanes for businesses to handle third-party medical devices.

Explains the concept of third-party verification and its role in the market.

Emphasizes the need for experience in anti-third-party manufacturing for business growth.

Provides tips for starting in the fast-paced manufacturing industry.

Stresses the importance of understanding the local market and products for manufacturing.

Talks about the process of becoming a medical representative to understand the market better.

Discusses the minimum order quantities and the importance of selecting the right molecules for manufacturing.

Introduces various molecules and their applications in different medical products.

Covers the topic of antiseptic and antibiotic molecules used in medical manufacturing.

Mentions the importance of having a combination of products for a successful medical business.

Provides insights on marketing strategies for medical products.

Talks about the role of a marketing team and the need for express people in the team.

Discusses the importance of distributors in the medical manufacturing business.

Covers the topic of inventory management and the challenges that come with it.

Provides advice on how to manage stock and orders to avoid stockouts.

Talks about the importance of third-party verification for a business's future.

Encourages viewers to start their express domain business and offers guidance.