Questions to Ask When Choosing Manufacturing & Supply Chain Partners

Editor’s Note: Mark Dohnalek is President & CEO of Pivot International, the Kansas-based global product development, engineering & manufacturing firm.

There are a wealth of manufacturing and supply chain partners both domestically and globally. Once your prototype has been tested and ready for production, there will be a wealth of potential manufacturing and supply chain companies to choose from.

And, while your executive team will never need to ask, “How can we find partners?” they should always ask, “How can we find the right partners”? And the answer may be different every time based on the company, project and other criteria from sourcing to distribution to production demand and more.

Below are questions to ask that will help you navigate the partner selection process:

What is their experience level? Find out. Ask to see their portfolio and requesting references. You need to find out if the company has been used by high-quality brands which gives you the indicator that they produce and/or manage the supply chain system that meets global quality standards. And while every company has to start somewhere, you probably want to avoid small factories or supply chain companies who are “just starting” a new division. It is important they are experienced in quality controls, auditing processes, logistics and “what if” scenarios.

Geographic location, global or domestic? This depends on the ease in communication, culture, and overall ease of deliverables. It's likely if you work with a manufacturer in Asia, you'll want to send a representative to that factory to keep things moving efficiently since their business culture is simply different in Asia. In China and the Philippines, face-to-face relationships are vital in business and video-conferencing won't replace the real thing. It's also important to consider the market for your product. To secure purchase orders with big-box major retail chains, you'll almost certainly have to go with an Asian manufacturer, as they have the capacity to create those massive runs of products at the targeted cost point that you'll need. If your product is going into smaller stores, or if you're releasing new products on regular, shorter timelines, you may want to look for a local manufacturer that can get your products into your hands quickly. Ask questions and ask again!

What's the supply chain of their supply chain? Make sure their supply chain is explained to you because this could be the key to whether your product ultimately succeeds or fails. Some manufacturers produce many or most components in their own factories, in which case you can be reasonably certain that you won't run into major shortages (unless there's a global or regional shortage of a certain material).

If a manufacturer does not produce every component of your product in-house, insist on reviewing a list of their suppliers and do research on each, to make sure each supplier factory is reputable, experienced, and has back-up plans for unexpected situations.
What production capacity can they offer?

You need to think in terms of your future needs as well as present ones. Now you may be working with multiple small product runs but growth is your objective. Will the manufacturer be able to meet greater demand if a big order comes in and will your supply chain partners be able to keep up with processing, delivery, even returns management? Always consider now and later to insure your growth will be supported properly.

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