Joao
Account Manager
B.S. degree in Computer Engineering at West Virginia University
5-year experience in QC industry
Fluent in Portuguese, English, Spanish, Mandarin

Jul 04, 2019

Choosing a Manufacturer with Confidence - Part 1

 

Selecting the right manufacturer is indeed one of the most crucial steps to bring about the success of an importing process. 

 

The right manufacturer is the one which can guarantee effective production procedures, accurate designs as well as lower costs. When you select a perfect supplier using the right methods, you can establish a cooperation that will add up to the growth of your company. If you make the wrong choice, however, you may not only lose the investment, but also lose the trust of your clientele, and this will eventually put you out of business.

 

With thousands of options on the table, is there any way you can know if you’ve selected the right manufacturer for your business specifically? There are many companies that make their decisions based on the price only. Though price is a crucial factor, there are other essential points to take into account. If you are searching for a provider, you should keep in mind these 5 important questions to have a broader understanding about the company and to measure whether or not you should associate your business to this company.

 

Is the equipment used by the manufacturer advanced and modern?

 

The industrial field is flexible, adaptable, and keeps on changing.  In the electronic industry, for instance, designers are making smaller components to fit on the PCB perfectly. It is highly recommended to certify that the manufacturer is well informed and knows how to use modern manufacturing technology.  It will be hard to guarantee a smooth production if the equipment used is out of date, or the staff are not familiar with modern technology terms.

 

Is communication with the manufacturer open and honest?

 

The process of building trust is highly sophisticated and complex. Firstly, your manufacturer should be able to explain their entire business structure. Also, they must be able to allow you or your team to visit the facilities at any time. Moreover, they must be available to talk over issues and introduce permanent solutions whenever they happen. Communication must be open and honest for a cooperation to grow. Your manufacturer must see you as a partner and not as a client or a supplier.

 

Does the manufacturer have the right certifications?


There is a specific certification requirement for every single industry, for example, ISO9001 and ISO13485 quality management certifications, or RoHS, CE, REACH compliances. It is highly recommended to have a discussion about all requirements, and countercheck the manufacturer’s certificates prior to closing a deal with them to make sure your provider is compliant to deliver your product build.

 

How does the manufacturer handle information?


To handle and manage huge amount of data, factories need to be fast and precise. Components and raw materials change on revisions and going End of Life (EOL), daily. Furthermore, delivery dates tend to change a lot. Your manufacturer must double check that they are producing your product with the right revision of the component and raw material, just as you have ordered.

 

Are they able to manage changes in equipment, including when new revisions for your products arise? Also, the production status must be directly dependent on ever-changing shipment dates. In case the manufacturer lacks on an efficient Enterprise Resource Planning (ERP) system, it will be difficult to have all this data neat and available. All in all, you must ensure your provider makes use of a reliable system to control their data internally as well as to the customer and you.

 

Is this company on the edge of bankruptcy?


It is always important to remember that the future of your business might be on the hands of your manufacturer. In most of the cases, the fact that a manufacturer is experienced, offers competitive price and is service oriented, can’t secure a successful business, so if you realize that their finances are unstable, you may want to reconsider relying on such a company. A reliable partner is a manufacturer that can handle large capital investments and has enough funds for additional requirements.

 

Products often need their components and raw materials purchased before receiving customer payments: can the manufacturer handle the costs? If a manufacturer isn’t stable, they may not be able to guarantee components and raw materials. Financial instability may also delay shipping for your products and consequently corrupt your schedule.

 

Conclusion

 

When verifying the reliability of a manufacturer, also referred to as a contract manufacturer, you must evaluate many directions. Select the right contractor, and your product will be in safe hands. Choose an inept provider, and you may end up spending a lot of money in the long run.

 

Getting these questions answered will contribute to the selection of the right manufacturer for your product. You too can rely on a full-accredited inspection service provider to secure your supply chain in a more professional approach. They are able to uncover problems before production or order confirmation. You could have an exact understanding of your supplier's capabilities, facilities & machinery, management, operating procedures, and quality control system. This enables you to select a qualified supplier with confidence.

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