Contract Manufacturing in Asia Checklist – Part I

When considering contract manufacturing for your brand’s product, there are several crucial things to know about the factory you ultimately select. In this two-part series we provide a useful checklist to serve as a foundation for your due diligence process as you identify suppliers. Companies manufacturing in Asia might find this particularly insightful.

We begin with the Top Ten

1. Capabilities and Specialization: Understand the factory’s core competencies and whether they have experience in producing similar products. This includes evaluating their equipment, technology, and expertise in your industry.
2. Quality Control: Inquire about their quality control processes and certifications (ISO, FDA, etc.). Ensuring consistent product quality is paramount for your brand’s reputation.
3. Capacity and Scalability: Determine if the factory can meet your production volume requirements. Consider future scalability if your demand increases.
4. Lead Times: Discuss production timelines, including lead times for raw materials, production, and shipping. Timely delivery is essential to maintain inventory and meet customer demands.
5. Costs and Pricing: Get a clear breakdown of costs, including production, labor, materials, and any additional fees. Ensure transparency in pricing structures.
6. Communication: Establish open and effective communication channels with the factory. Language barriers and time zones can impact collaboration.
7. Location: Consider the factory’s geographical location in terms of shipping costs and logistics. Proximity to your target markets may also be a factor.
8. Intellectual Property Protection: Discuss measures for safeguarding your brand’s intellectual property, such as patents, trademarks, and proprietary processes.
9. Ethical and Sustainability Practices: Inquire about the factory’s commitment to ethical labor practices and environmentally sustainable manufacturing processes. This aligns with consumer expectations for responsible brands.
10. References and Reputation: Often the most overlooked but most important—Ask for references from previous clients and research the factory’s reputation. Online reviews and industry reports can provide insights.

Next week will present additional information for identifying, verifying and qualifying suppliers in Asia.

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