Congratulations, your success as an entrepreneur is on track, and the product you invented is ready to go into production. But you don't know any people in manufacturing and know of others who have reached this stage, only to find they could not find the right manufacturer for a long time — often for a year or more.
One reason this happens is many creative types don't know the right questions to ask a prospective manufacturer. This post will help by sharing six must-ask questions during the manufacturer selection process.
1. What companies do you presently produce products for?
The answer to this question is important. If they name companies and brands you know of, there is a high likelihood these major brands have been visited by them and audited, too. Feel free to ask for a contact name at a client company so you can follow up. If your production is going to be done by a regional contract manufacturer, ask for a current client list of contacts.
2. How do we both benefit from working together?
Understanding how both companies benefit from partnering with one another is important. If a prospective manufacturer cannot answer this with more than platitudes, then there is no value in pursuing a relationship.
3. What happens if our production hits a lull?
When you consistently hit or exceed your quota goals, your manufacturing partner is nothing short of ecstatic. But almost every company hits a dip in orders and doesn't want to tie money up in inventory. You need to know your manufacturing partner looks at the relationship you are building as long term and helps you when you are in a lull.
4. How big is your facility?
Why is this important? Because the bigger a manufacturing plant is in size and number of workers, the more likely it is able to handle sudden changes in production schedules, such as a sudden rush order from a new customer. In addition, the larger a manufacturing facility is, the higher the probability that it is more experienced than smaller plants. Most manufacturers start small and grow as they and their clients succeed.
5. How do you monitor quality?
Find out what steps they follow to ensure products meet or exceed quality expectations. If the answer is ambiguous or unsatisfactory, run from the meeting table and find someone else. Manufacturers who are high-quality producers should be able to walk you through the entire quality assurance methodology in an easy-to-understand manner.
6. How much do you discount in the case of delays?
Delays in manufacturing are ubiquitous and are the bane of every company that uses an outside manufacturer. Ask your prospective manufacturer how much will they discount in the case of delays. Contract manufacturers — not you — control their machines, manpower and suppliers. Often, relationships between entrepreneurs and manufacturers fail due to constant late deliveries.
Getting answers to these six questions will go a long way in reassuring you that you have chosen a great manufacturing partner.
