A global manufacturing world without geographical borders can be both a blessing and a curse.
On the one hand, we’ve never had such a variety of choices when finding manufacturing partners. On the other hand, that abundance makes it harder to find the perfect match.
What’s the answer? Without geographical constraints, we must take a systematic approach when selecting manufacturing vendors.
In this guide, we’ll explain how to do that. Read on to learn how to find the right vendors for your small business manufacturing.
Market Research
Finding the right vendors starts with some in-depth market research. A good starting point is by reading through industry reports. These publications often feature top vendors, and you may spot some helpful rankings.
It’s also helpful to see what your competitors are doing. Use networking events to find out more about the partners of your competitors and peers. You may even get some first-hand recommendations.
Some accreditation bodies will also be able to provide you with a list of suppliers with specific certifications you might need in your industry.
Market research takes some time. And you need to be systematic in your approach. However, it’s the best way to search thoroughly and help you single out the top vendors.
Create a Checklist
Part of taking a systematic approach to choosing vendors is comparing each side by side. Creating a checklist will help you do that. It should include:
- Pricing structure
- Experience (years in the industry)
- Reputation (number of positive reviews)
- Location
- The vendor is in a sound financial position
- Current and future capacity, including lead times
- Scope for scaling
- Communications and customer service
- Industry accreditations and certifications, including quality standards
- Returns policies and logistics
A checklist will also help you clarify the most crucial criteria for your business. For example, you may need vendors who operate in specific countries and regions. So, once you have this checklist, prioritize your most pressing criteria.
Vetting Vendors for Overseas Markets
There are many advantages to overseas vendors, like product range and pricing. However, when exploring overseas vendors, you’ll need to take some extra steps to ensure you select the best partner for your business.
Use international platforms to find a shortlist of vendors for that location.
Spend time reviewing comments and ratings from other firms. It will ensure you’re dealing with a company that can meet your quality standards.
International quality accreditations like ISO are also helpful for this.
You should also do background checks to see what the vendor offers to their domestic market. That can be a helpful way of finding the most experienced businesses.
Try Vendor Sourcing Platforms
It’s helpful to compare different vendors side by side. Checking vendor sourcing platforms or manufacturing directories will help you do this.
Use these platforms to shortlist vendors specializing in your particular sector. You’ll also get to see some pricing and terms to give you some guidelines you can use during the rest of your search.
Plus, some will even showcase reviews from other businesses to help you assess trustworthiness and reliability.
Remember, when using these platforms, they are a starting point in your search. You’ll still need to do more in-depth research before choosing a vendor.
How to Find Vendors When You Need Custom Orders
Sometimes, you might have particular needs, such as custom products. When you face that situation, your first step is to draft a specification document outlining your requirements.
You might want to add some details like the material and unique features. Taking the time to do this will make talking to potential vendors easier. You’ll be able to find partners who can work with your custom requirements.
It’s also a chance for a vendor to ask questions and ensure they fully understand what you need before signing a contract.
So you won’t face a lengthy contract negotiation only to face a final eleventh-hour hurdle, such as discovering the vendor can’t fulfill your requirements.
How to Assess Capacity
You need a business that can support you if you have a high volume of orders. So, capacity is one of the most fundamental checks you’ll need to make when finding a suitable vendor.
A high-quality vendor with an excellent reputation isn’t right for you if they can’t meet your unit requirements. When looking at capacity, think about seasonal demand, too.
Examine your orders to see if there is a peak demand and whether a potential vendor can support you during that peak.
You’ll want to do some due diligence with a vendor, like checking their infrastructure and workforce. Plus, it’s worth finding out if they partner with companies of a similar size to yours.
Checking for Quality Control
You want every aspect of your manufacturing to reach the highest quality standard. So, you must thoroughly check the quality processes of any shortlisted vendor.
ISO standards are necessary; you should ensure their certifications are valid and up-to-date. You can also ask other questions to assess quality, like the historical defect rate.
Ask the vendor how they handle quality issues like batch inconsistencies. Their approach will tell you much about whether they can adhere to the best quality standards in your industry.
Check Testimonials and References
Testimonials offer a helpful insight into a vendor’s capabilities.
They will tell you whether their strengths live up to their claims, and it will also give you information on your vendor’s approach. So, take the time to review these in detail before making a final choice.
You should also ask for references and contact the companies with some pre-written questions. Those questions will be your last check on a vendor, so ensure they cover everything important to you.
For example, you may ask a reference company how the vendor handled a quality problem to check quality standards.
Vendors for Small Business
Business products are only as good as the manufacturing vendors you entrust with your innovations. So, use this guide to help you in your search for the best vendors for a small business.
At China 2 West Services Ltd, we’ve created a manufacturing and sourcing service from China tailored to small businesses like yours. Contact us today to learn more.
