The key is to find the right manufacturer is no easy task. With so many factors to consider, entrepreneurs and business owners with little experience working abroad continue to struggle to find the right person.
Here are key elements to consider when choosing a factory to produce your products:
- Competitive prices
Cost savings remain a major driver for acquiring goods. If you manufacture by volume, you can significantly save on tooling, molding, unit cost, packaging, and other necessary steps in commodity development and production.
Although cost saving is one of the main reasons to search and find a manufacturer it is clear that you should not sacrifice the quality of your product. Make sure you are working with a manufacturer that offers a good mix of competitive pricing and one that can meet your quality guidelines.
- Manufacturer capabilities
Over the years, manufacturing services have improved their manufacturing capabilities significantly. Working with a factory with more advanced development, production and logistics capabilities will be an advantage for your business.
- Factory compliance
It is imperative that the plant you choose complies with all government rules and regulations. This is also especially important when working with major retailers as they will make sure you meet all compliance requirements for quality and safety before doing business with your company.
- Reliability and reliability
Having a reliable and trustworthy manufacturing partner is critical to your success. Unfortunately, this is very difficult to assess, especially for startups. Make sure you have good references and recommendations before working with the manufacturer.
- Payment terms
You should look for a manufacturer who is financially stable and offers acceptable payment terms. Make sure you work with someone who doesn’t expect you to prepay for your goods.
- Speed and punctuality
When working with a foreign manufacturer, you should consider the longer lead times for getting your products to their final destination. Having a manufacturer that has the ability to produce and ship your products as quickly and efficiently as possible is the key to your success.
Timely delivery of orders to your customers is critical to the success of your business, so make sure your partner is trustworthy, manages and meets your expectations.
- The ability to communicate
One of the challenges when working with a foreign manufacturer is the language barrier and cultural differences in business practices. It would be in your best interest to choose a manufacturer that has the capacity or resources to communicate with you clearly while doing business with it.
- Value added services
A manufacturer that provides value-added services, such as in-house package engineering and design support, can be very helpful during production.
- Factory location
One of the important things to consider when choosing a manufacturer is the physical distance from the factory to the port. This is important so that you do not incur large expenses for trucking from the factory to the port.
Keep in mind that not all items are good for offshore manufacturing, so you should carefully assess your needs and prioritize your business values and goals. If you decide to produce abroad, there are several reliable companies that can help you find the right manufacturer.