I am often asked to recommend which co-manufacturer a new supplement brand should use, or even who the best supplement manufacturer is. The answer to this question is not as simple as naming my favorite co-manufacturer. The goal is not to identify the “best” manufacturer overall, but to identify a good manufacturer with the best strategic fit for your brand. Here are nine key factors to consider when selecting a manufacturer to make your product. Given the goal of building a long-term and mutually beneficial partnership, careful consideration of these factors is essential.
1. Cost
Your bottom line should always be an essential factor in choosing a manufacturer. How do you know if you are getting a good deal? The best way to do this is by obtaining multiple quotes; I recommend at least three. All contenders need to have a thorough RFQ to ensure the quotes are an apples-to-apples price comparison. Once quoted, scrutinize pricing for any significant outliers. Pricing that is too low should raise questions about the quality or process integrity, while prices that are too high may mean that the manufacturer is not a good fit for that product.
2. Problem Solving
Supplement manufacturing can be complex and challenging. Anything that can go wrong eventually does. Do not judge a manufacturer on the absence of problems, but on how they handle issues when they arise. Ask them about their CAPA (Corrective Action, Preventive Action) program and what specific steps they take to involve their clients in the problem-solving process.
3. Experience
As no manufacturer is immune to issues, greater experience should reduce their frequency. Experience creates greater opportunities to put safeguards and preventive measures in place. If they are capitalizing on these learning experiences correctly, it can create a smoother experience for you.
4. Communication
Poor communication from sales personnel is endemic in all industries. Poor communication can lengthen project timelines and create roadblocks to identifying and solving problems. If you are having communication issues with sales personnel, escalate concerns directly and candidly with the appropriate management. Communicate your need for a more attentive or knowledgeable salesperson. Going over a salesperson’s head can be awkward, but it may be the best solution if you think a salesperson is hurting rather than helping the manufacturing process.
5. Quality Systems
Any manufacturer you work with should be actively striving to improve its quality systems. Request third-party audits to identify their weaknesses and ask what they are doing to actively address them.
6. Vibe
Evaluate cultural alignment. If a long-lasting relationship is your goal, make sure the manufacturer’s corporate culture and values align with your company’s values and operating style.
7. Trust
This may seem too obvious to be on this list, but some salespeople tend to make unrealistic promises. It can be challenging to estimate accurate lead times or deliver bad news; however, honest and transparent communication is essential for manufacturing, which can be a very collaborative process. Recognize that the salesperson or manufacturer may be afraid of losing you as a customer. Just as important as you being able to trust a manufacturer, it is important for the manufacturer to see you, the brand, as a long-term partner that they can also trust.
8. MOQ amount
Carefully consider your budget and ability to sell product, as low minimum order quantities (MOQs) may bring down your initial purchase but come with definite drawbacks. The minimum order quantity a manufacturer requires often correlates with that manufacturer’s size. The smaller the MOQ, the more challenging it can be for a manufacturer to make a profit. If you are looking for a smaller MOQ, then a smaller or newer company may be more accommodating. Please note that choosing a smaller or newer company may come with limited experience and less-developed quality systems. Lower MOQs can limit your customization choices and increase the price per unit. Be skeptical of any company that offers super-low MOQs for custom products. This practice can indicate that the manufacturer is cutting corners or skipping required regulatory overhead. If you are looking to do very small MOQs, white labeling may be a better option until your brand can sustain the MOQs needed for quality custom products.
9. Product Fit
Manufacturers may specialize in multiple categories, but I have yet to see one that excels at all of them. If your brand has products that fit into multiple categories, it can be easier to work with a few manufacturers that cover multiple categories for you rather than many manufacturers that cover one category each. If you find someone trying to do it all, they will not do them all equally well. Manufacturers may advertise a larger selection of capabilities than they are actually good at. Learn where each manufacturer really shines and use those lesser capabilities when convenient.
Finding and developing a partnership with a great manufacturer can be challenging. The reward if done right? A quality product made for a reasonable price that arrives when it should.
With all these considerations to keep in mind, it can feel a bit daunting to find the right fit by yourself. Brokering is one of the many services we offer, so if you have questions or need assistance we are here to help.
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