6 Best Practices for Finding the Right Manufacturing Partner

Pivot International  |   March 14, 2017

Taking a product from concept to production can be a lengthy process.

From the time an idea is conceived, many times on something as simple as a napkin, to the time a stranger somewhere in the world is actually using your product, you’ll have to go through many different steps.

Of those steps, perhaps the most complex is finding the right manufacturing partner. There are many considerations that you have to account for. Do they have the capacity for your product, whether you want large or small batches? Will they be able to meet your deadlines? Can they source materials reliably?

These, and many other questions, will come up as you begin your search. Here are a few pointers to get you started.

Ensure your design is ready for the manufacturer

It may be tempting to try and get ahead of the game by scouting for manufacturers as soon as you come up with your product concept. However, this won’t do you any favors. Chances are, the manufacturer will want to wait until you’ve got at least a working blueprint or a prototype so that they can get an idea of the materials and processes your product will need.

If you don’t have that blueprint yet, you’ll need a product designer or engineer to do that for you. Once your design has been documented fully, you’ll either want to do a rapid prototype, or look for manufacturers that can create a standard prototype of your product.

Make sure your supply chain is manageable

Not all manufacturers are created equally – in other words, one company may be a one-stop-shop for all of your manufacturing needs, from sourcing materials to production and distribution.

But in some instances, you may find yourself sourcing things yourself. You simply need to decide whether that’s something you want to take on. Companies do do this, but it naturally take a lot more time and resources than simply outsourcing your supply chain management to somebody else.

If you do decide to take on some supply chain management duties, make sure that you’ve got the software and people to do it right. You’ll also have to ensure you’re in full, open communication with your manufacturing partner.

Be clear when making the initial contact

When you’re scouting out potential manufacturers, be clear, concise, and firm, though polite. State what you need and ask what more they need from you, being careful not to overwhelm with unnecessary information. And remember that this may be the first of many conversations with your new partner, so make sure the potential relationship gets off to a healthy start.

Review communication policies between manufacturer and developer

When you’re screening potential partners, things to look out for include their response time, references, and work samples.

How is their communication?

Are you and your point of contact working together well, and understanding one another clearly?

Carefully go over their communication policies to ensure that transparency is an integral part of the way they do business. This will help you determine whether the manufacturer is a good fit.

Assess the budget

No matter how perfect you think a potential manufacturing partner will be, if that facility can’t work with your budget, it’s not the right fit.

Now, you may end up having to rework your budget. It could certainly be the case that your numbers are too low in some areas. However, working with a manufacturer you can’t afford is almost certainly a recipe for disaster.

When you’re looking at how much it will cost to make your product, consider additional potentialities besides the simple cost of manufacturing 1, 1,000, or 10,000 units.

Find out about your potential partner’s cost structure and how it works. Consider scenarios where you may require additional work or wish to make changes, and ask those costs are figured in. Finally, when getting your quote in writing, ask for a line item quote rather than a lump sum.

Consider manufacturing abroad

It’s no secret that it’s cost-effective to manufacture in locations across the world, especially Asia.

Cost is not your only consideration, however. Quality control and delivery time are also incredibly important when you decide to manufacture your product. Can your partner guarantee reliable delivery and adhere to timelines? Do they have rigorous quality standards in place? Are they versed in delivering products to international clients?

If you are considering manufacturing abroad, speaking to a trade specialist may be of benefit to you. They can help you decipher all the ins-and-outs of manufacturing abroad.

You can also meet with your potential manufacturer’s U.S.-based agent, if they have one.

Finding a manufacturer can be complicated, but before getting overwhelmed, remember that both brand-new entrepreneurs and seasoned company executives go through this process every day. For more on manufacturing your product, read “20 Business and Manufacturing Trends to Watch for in 2017.”