The Advantages of In-House R&D and Formulation for Customers

When a manufacturer has an in-house research and development (R&D) department and can formulate products onsite rather than use a third party, such as a toll producer, the manufacturer can offer its customers numerous advantages compared to one that relies on outside sources. The most significant benefits are:

1.  Higher Degrees of Control & Customization. Having In-house R&D and formulation capabilities allows a company to fully control the quality and timing of the R&D process and the development of products resulting from those R&D efforts. By performing research and developing products under one roof, the company can tailor its products to market needs it believes are unmet, or to the specific requirements of a single customer. The flexibility a manufacturer gains by performing R&D internally often results in providing the market with more customized and differentiated products than would be possible otherwise.
2. Protection of Intellectual Property (IP). In-house product development and manufacturing helps protect the company's IP, and in many instances, that of its customers. By conducting R&D and product formulation internally, the company can reduce the risk of its IP being used in unauthorized ways that can undermine the company’s competitive advantage and that of its customers.
3.  Faster Product Development Cycles. In-house R&D teams can often respond more quickly to changes in market demands and technological advancements. This agility allows companies to bring innovative products or solutions to market more quickly than is possible under alternative business models.
4. Better Quality Control (QC). By conducting R&D in-house, a company can closely monitor the product development process, ensuring that products meet the highest QC standards. As a result, a company can consistently develop and manufacture products that meet specifications precisely and meet or exceed customers’ expectations.
5. Improved Cost Efficiency. Although establishing an in-house R&D department may have upfront costs, it can lead to long-term cost savings. By developing products internally, companies can avoid expensive licensing fees and reduce their dependence on external suppliers, as well as eliminate the risk of relying on third parties to meet production and delivery schedules.
6. Seamless Collaboration. In-house R&D makes it easier for various departments, such as engineering, production, and marketing to collaborate. Those close working relationships can lead to improved communication and an efficient, repeatable product development process.
7.  Better Alignment with Company Goals. An in-house R&D department helps to ensure that product development activities align with the company's strategic goals. With only one “master” to serve, the R&D team can focus exclusively on projects that contribute directly to the company's short-term growth while also helping the organization meet its long-term objectives.
8. Greater Flexibility. In-house R&D and manufacturing allow companies to adapt to changing market conditions more quickly than they can by collaborating with external partners. By performing their own product development and production activities, companies can adjust their strategies as they see fit and respond to emerging opportunities and challenges without being constrained by someone else’s priorities or problems.
9. Long-Term Sustainability. Developing internal R&D and manufacturing capabilities enables a company to become more self-reliant and thrive while competitors may struggle. This ability to find opportunities and quickly change direction when necessary is critical to developing and maintaining a base of loyal customers, especially in rapidly evolving industries.
10. Talent Retention and Development. In-house R&D and production teams allow a company to attract, develop, and retain top talent. This team spirit fosters a culture of innovation and continuous learning, making the company a desirable place for ambitious researchers, product development, and manufacturing professionals who are endlessly curious and totally dedicated to the company’s success.

At Bergad, we have done R&D and formulation in-house since we began 35 years ago. Since then, we have experienced the benefits described and have used this feature of our company to differentiate ourselves from competitors and establish strong relationships with customers in a variety of markets.

To discuss the advantages of working with a partner that controls its own destiny and can help you strengthen your ability to control yours…