For people who are not ready to reach out to a contract manufacturer, do not feel left out as there are numerous firms which follow this path of ignorance. Small companies operate under cash constraints and possess narrow product development options. This makes marketing tough without the presence of a proper marketing department. Moreover, expansion into adjacent categories also become hazy adding to the number of obstacles. The need for finding a manufacturing partner in China comes into effect in order to solve this misery. The preferred partner would help you get over the dip and balance your production. But how to find a manufacturer in China?
The decision to select which manufacturer you will work with is counted as one of the most important decisions for your firm. This choice should be given stern importance or it might surely backfire. What can go wrong after you choose a wrong manufacturer? You can have production troubles as a result of poorly-maintained equipment or due to their priority for a larger customer population ahead of you. Also, process aberrations and operational slipups can be upsetting to your reputation in front of the customers. Above all, manufacturers can get trapped into raw material quality problems due to poor vendor management. Such issues might be a minor headache for a huge company, it can prove fatal to a startup which is struggling to acquire brand recognition.
The next factor which should be taken into consideration is the manufacturer’s responsiveness. Do the contract manufacturers share the same sense of urgency as you do? Do they reply to your phone calls whenever you are in need at any time during the day? Apart from responding in a timely manner, would act flexibly when the unpredictable happens. You need to judge their presence and methods after entering a contract with your firm.
Who Are Their Customers?
Always keep a tight check on the manufacturer’s current as well as past customers. Also, analyze have they worked with other customers in a similar fashion as they are to you, or is your firm the first of its type and size they are working with? Do they preserve customers for the long term? These are some questions which should be asked before making the knot too taut.
Be wary of fixing business with such a manufacturer who isn’t happy to offer you a positive connection with other customers as part of active references. Do not hesitate, but ask for a list of the manufacturer’s past customers. Do not miss on the task to call their past customers and analyze the reason why they stopped doing business with your preferred manufacturer.
View the Total Landed Cost
While looking at the contract manufacturing market analysis, you must focus on the pricing of various manufacturers. This will give you a brief idea about the total cost which consists of different components such as the manufacturing fee, packaging/materials, ingredients, yield loss, storage and transportation.
You need to confirm that your manufacturing fee is all-inclusive and nothing more will be added in the later process. It is important to note that, the individual firm’s yield loss should permit around 3% on ingredients along with a percent or two linked to packaging materials. Moreover, also ensure that the total landed cost should include procurement, storage, waste disposal and quality assurance.
Look at the Team
Keep a note that an ideal manufacturer will manage an entire team which is full of well-informed competent people who are valued and well-respected in the company. Try to find out how long the employees been working with the company, and whether the company has acquired a good reputation in the concerned industry or not.