Choosing the right manufacturing company is crucial for your product’s success. Learn what factors to consider, such as costs, location, specialization, domestic vs. overseas options, and questions to ask manufacturers to ensure quality, efficiency, and compliance.
Choosing a manufacturing company is a complex process and one that is incredibly important to the success of your product and business. There are a lot of key factors to consider when selecting which manufacturing company to use, including manufacturing costs, negotiation of terms and prices, cost-saving strategies, and whether to use a domestic or an overseas manufacturing company. When choosing a manufacturing company you have a complex landscape of options and each of these come with their own strengths and weaknesses, and capabilities. When you select a manufacturing company to use to are essentially forging an collaborative partnership that is reliable and promotes innovation and long-term success.
Why it is important to choose the right manufacturing company
The right manufacturing company influences the cost, quality, and the efficiency of bringing your product to market. The right manufacturing company can help you to create a product that is produced to the highest standards and within regulatory requirements, making sure it is delivered on time and within your budget. However, the wrong manufacturing company can cause you all kinds of problems, leading to quality issues, products which can’t go to market because they don’t conform to regulations, delays in the product being manufactured and increased costs, all of which could put the success of your product at risk. For this reason it is important to consider your options and do your research, to mitigate risk and create a foundation for long-term growth.
Domestic vs Overseas Manufacturing
One of the biggest decisions you’ll need to make is whether to use a domestic manufacturing company, i.e. a manufacturing company within your own country, or an overseas manufacturing company. Each have their pros and cons which you’ll need to understand in order to make this decision.
- Domestic manufacturing companies: usually have shorter lead times, fewer logistic problems and the communication is often easier. However, due to labourer costs and greater regulatory requirements, the costs for a domestic manufacturing company may be higher.
- Overseas manufacturing companies: may be a cheaper option for you, these companies also usually have a higher production capacity. However, there may be quality control issues and potentially longer lead times, you may also find the language barrier and cultural differences pose some challenges.
Manufacturing companies and things to consider
After you have decided whether you’d like to choose a domestic or an overseas manufacturing company, you’ll need to make a list of potential manufacturing companies and start vetting them to find the best company for you. Things you’ll need to consider are:
Experience
Ideally you need to choose a manufacturing company that has good experience within the industry. Choosing one of the biggest manufacturing companies is a good idea because they will have a lot of experience, there is less chance of them going out of business, and you have peace of mind that the products they make are of a high standard.
Specialism
It is also a good idea to use a manufacturing company that specialises in your particular type of product. They will have better experience and the tools and knowledge required to make your product to a high standard, they will also have a better understanding of the regulations to make sure your product is up to specification.
Communication
In order for you to have a good relationship with your manufacturer and overcome any problems quickly, you need to be able to communicate well with them.
Size
You need to make sure that the manufacturing company you choose has experience of working with a business your size. If you’re a large business, you need a manufacturing company that has experience of working with large-scale businesses and therefore can handle your needs.
Location
The location of your manufacturing company is important, it can affect production costs, energy costs, supply chain efficiency, sustainability of manufacturing operations and it can also provide you with local incentives that could reduce the cost of the production of your product.
Questions to ask a manufacturer
Once you’ve narrowed down your search and have a shortlist of potential manufacturing companies, it is a good idea to reach out to them and ask them some questions to make sure they are right for your business and product. Some questions you can ask include:
- What products do you currently produce?
- What industries do you have experience in?
- What is your capacity?
- What are your capabilities?
- What value-added services can your manufacturing company provide that others can’t?
- Is there a minimum order quantity?
- What are your payment terms?
- What are your lead times?
- Who else do you manufacture for?
- What is the cost for prototyping and sampling?
- Will you sign an NDA (non-disclosure agreement?
- What audits or industry certifications does your factory comply with?
- What are your quality control processes?
- Can I see the factory?
- What type of machinery do you have?
- Who will manage my account?
Once you have found a manufacturing company that you think will work best with you, your product and your business, you need to familiarise yourself with manufacturing costs and negotiate terms and prices with your manufacturer to make sure you get the best deal possible and therefore see more of a return on your investment.
