Although it’s tempting to build internal operations for all your company’s functions, it’s not always the best choice. This is even more true for manufacturing, where it can cost a lot of money to start up a basic operation. That’s why it’s no surprise that at least 70% of businesses outsource manufacturing.
The question is, how do you find contract manufacturing companies that can take your product and produce it at scale? It starts with developing clear criteria for what you expect from your manufacturing partners.
Let’s look at a few tips that will help you narrow your choices and find a great manufacturing service.
Consider the Reputation
Before you dig further into working with a China sourcing or manufacturing company, it’s vital that you learn about their history and what their clients think of them. You don’t want to work with a company without a history of success.
Start by looking for reviews of your manufacturing options. Take the list of manufacturing companies you have to see if there is any feedback online about their services.
If possible, you can also connect to people in your network who have been through the contract manufacturing process before. They can offer a list of reputable companies to reach out to.
Once you have a list of reputable manufacturers, check out their portfolio to see what kind of history they have. Doing this will give you an idea of what to expect and the types of products a manufacturer has produced before and help you avoid red flags.
Verify Scalability
Ideally, you want to scale your business as fast as possible. You don’t want to bite off more than you can chew and end up unable to fulfill your orders. But at the same time, you want your manufacturer to keep up as much as they can.
Not all contract manufacturers will be able to handle larger workloads. They may be fine to start with initially. But as your business scales and you require more production, your manufacturing partner may not be able to keep up.
Before you sign with a contract manufacturer, verify how much production they can offer. Your partner should be able to keep up with your future demand and retain the same level of quality.
Look at the Response Times
Before you dig further into working with a China sourcing or manufacturing company, it’s vital that you learn about their history and what their clients think of them. You don’t want to work with a company without a history of success.
Use your initial communication with a manufacturer to begin testing this. Do they get back to you within a reasonable timeframe, or do you get a response after a few days?
If the manufacturer you speak with responds in a timely manner, you can then talk about their normal response times after signing a contract. Ensure there is a timely response guarantee, regular communication when issues occur, and the method of communication works for you and your team.
Check the Services Offered
Not all manufacturing processes are the same. Some companies may have unique product lines that require different types of manufacturing capabilities that not all contract manufacturers may have. On top of that, some businesses may need extra help with consulting services like product development.
If you’re in this situation, ensure you verify the services offered by the contract manufacturers you consider. Some manufacturing processes you can consider:
- Metal cutting
- CNC machining
- Welding
- Assembly services
- Quality testing
Think of the processes your product needs to be built before you start searching. From there, narrow your search to the services that offer everything you need.
Look for Listeners
One of the biggest things to remember when outsourcing manufacturing is that you’re looking for a partner. You don’t want a manufacturer that just tells you how things should be done or offers no feedback. You know your products well, so you want to work with a company that listens and responds to your company’s needs.
Make sure the service you use listens to your needs and asks questions about your company’s goals. The goal shouldn’t be to just sign you as quickly as possible. It should be to determine if they can meet your requirements and produce great products.
Before a service offers you a contract, they should get as much information as possible. Give them your regulatory requirements, technical specifications, quality standards, timelines, and any other relevant information. This data should help manufacturers determine if they can help produce your products.
Learn Your Expenses
There’s no getting around paying a decent amount for great quality when outsourcing manufacturing. However, you may see varying price points when you start asking for quotes.
Make sure to get as many quotes as possible to learn your options. On top of that, get quotes for different order amounts to see what volume discounts you can get.
Ideally, look for the manufacturer that offers the best value for the money. Consider the shipping cost, total manufacturing costs, administrative fees, and any other costs associated with manufacturing.
Consider the Terms
Terms are another thing you must consider when choosing new Chinese manufacturing partners. These are things like payment terms, shipping terms, and other contractual obligations.
Make sure everyone knows their part before signing a contract. Get everything in writing and have a legal representative review everything to ensure everything is in order.
Another thing to consider is intellectual property. If you’re doing something unique, you may have protected information your manufacturing partner needs to build your product. Make sure you’re protected in this arrangement to avoid your IP getting released.
Find the Right Contract Manufacturing Companies
Finding reliable contract manufacturing companies will be one of the most important decisions for your business. The right partner will help you scale your operations and keep up with your quality standards. Be sure to use the tips above to find a China manufacturing company that can help you meet your business goals.
At China 2 West, we’ve helped countless companies manage their manufacturing process and expand their businesses. We offer contract manufacturing services for all of your needs. Contact our experts today to learn more about how we can help your business.
