If you're looking for a product manufacturer, you have a lot of options. However, not everyone is a good fit for your business. It is imperative therefore that you do your research and find a manufacturer that meets your business requirements. You have to consider a number of factors before making the final selection.
What should you look for in a product manufacturer? What criteria should you use in your selection process?
Before you do anything else, you need to find out whether the manufacturers that you have come across have the right expertise to do the job that you want to outsource to them. A fabric manufacturer, for example, will not be in a position to produce nuts and bolts for engineering purposes.
When you consider the expertise of the manufacturers on your list, also consider the academic and technical qualifications and experience of the professionals working for the manufacturer. The last thing you want is to have amateurs working to produce highly complex products that they know nothing about. It would be a disaster waiting to happen and may cost you your business.
2. Local vs. Overseas
The issue of whether to opt for a local or overseas manufacturer usually boils down to one thing: cost of production. If you want to lower your production costs by any means necessary, then outsourcing your manufacturing business jobs may be the way to go. Do know however, that you will have less control over what happens within overseas manufacturing plants since each country has its own set of manufacturing regulations.
Local production is likely to be more expensive than overseas production. However, you will be in a better position to raise product prices if you market to people who want to buy local. You will also help enhance the local economy by creating more jobs.
3. Level of Control
How much control you want to have over the manufacturing process will also help to determine the manufacturer that you select. If you want to control every aspect of the production process, you should look inward for your production solutions. That means that you may have to start your own manufacturing plant to create your own products.
On the other hand, if all you are interested in is the design aspect of the product creation process, you need to outsource your manufacturing jobs to a manufacturer who offers comprehensive manufacturing services. You can even opt for a manufacturer who offers drop-shipping services so that the delivery of products will also be taken care of.
4. Level of Customization
The manufacturing strategy that you want to use to come up with products to sell should also be considered when you are choosing a manufacturer to work with. Some manufacturers only deal with make-to-stock products. If you intend to produce regularly used items like soap and the like, then such manufacturers will work for you. You can simply have them manufacture products in large batches, which you can then store in your warehouse.
On the other hand, if you intend to sell highly customized products, you need to select manufacturers who deal with make-to-order products. Such manufacturers need to have specific pieces of equipment suited to the customized products that you intend to sell. You can also collaborate with manufacturers who specialize in producing components of certain products, if you intend to have them assembled later on after customers place their orders.
Clearly, you have to consider many factors when selecting the right product manufacturers. Take your time when doing it because the manufacturer that you choose can make or break your business.