How to Find the Right Component Manufacturer for Your Product
You got a great product, but local manufacturing costs are skyrocketing. Or you want to meet the rising demand for your product by accelerating time to market. But there’s no way to optimize internal manufacturing processes.
What do you do?
The answer is usually outsourcing. However, if you’re already running a successful manufacturing plant, you wouldn’t want to outsource the whole process and make all your employees redundant. The better approach is to find a component manufacturer that can help reduce manufacturing costs while accelerating the time to market.
But how do you find the right component manufacturer?
At MMI, we have been manufacturing a wide range of products and components for over 25 years. From our experience, we recommend making a choice with the following considerations in mind:
1. Established Experience
When seeking out a component manufacturer, it’s vital to look at their track record. In this scenario, you can reach out to businesses they have worked with, look up customer reviews, and so on.
If they are working with known brands, that’s highly indicative of their ability and reliability. However, you should still reach out to them and pay attention to how they answer your questions.
Consider this scenario: They are unable to walk you through the whole process, answer questions about sourcing, or turn around time. In that case, it isn’t a good demonstration of their knowledge and experience (so look out for those red flags!).
2. Size (Doesn’t Matter)
Large manufacturers have a lot of skilled staff with extensive knowledge and experience. At the same time, smaller manufacturers are more agile and offer greater flexibility.
Bigger doesn’t necessarily mean better. It comes down to your individual needs and a manufacturer’s ability to deliver. This means that they must have the capacity to provide the quantity you need to achieve your objectives.
Sometimes, the component manufacturer you outsource to might outsource some processes to one of their partners. This makes it crucial to determine if your outsourcing partner does this and to what degree.
If your potential manufacturing partner does this, then you’ll have to vet their third-party partners as well. Make sure that third-party manufacturers are equally reputable and follow best practices.
Regardless of how the job gets done, it’s vital to demand enhanced visibility throughout the product lifecycle. According to Deloitte, it’ll be the most crucial capability for manufactures in 2021.
4. Turnaround Time
In this business, timing is everything.
Make sure that your component manufacturing partner is on the same page when it comes to the production timeline. If their turnaround time fits with your own manufacturing schedule, then you should be good to go.
However, ask them how they’ll troubleshoot potential delays. It’s crucial as the turnaround time directly impacts production pricing.
5. Payment Terms
Speaking about pricing, explore their payment terms. Sometimes, when you work with a component manufacturer for the first time, they might demand full payment for pre-production. So, discuss the payment terms early and avoid surprises down the road.
6. Minimum Order Quantity (MOQ)
It’s also important to consider their minimum order requirements. This is because MOQs can vary quite significantly among component manufacturers (and specific types of products). Before committing, it’s critical to ensure that their MOQ is within your budget.
At MMI, we have helped leading brands leverage our extensive network and sub-brands to overcome manufacturing and supply chain challenges. Our decades of experience will help you bring products to market on time both domestically and abroad.
To determine what makes the most sense for your next manufacturing project, reach out to our in-house expert, Julie!
Sales Manager (West)