When starting up a new business venture, there are plenty of things to consider that go beyond the mood boards, designs and colors of your particular product. One area that needs careful consideration is logistics and the ability to create the successful production process. Here are a few useful steps to help find the right factory for your product idea:
Overseas or domestic suppliers
A standard question to consider is whether you want to work with an overseas or domestic supplier. By looking at both options, there is the greatest opportunity to find the most cost-effective wholesale or manufacture process to match the needs. Some of the most popular overseas locations include the Asian countries, such as Taiwan, India and China.
In most cases the overseas option is the cheapest, but it is still best to consider more than the cost per unit or upfront investment. Both of these production options have their own positives and negatives.
Sourcing products from overseas not only has the lower manufacturing costs, but also a greater number of factories to choose from. However, this option also has its negatives, such as the longer shipping times, cultural differences, communication issues and the risk of lower perceived quality.
Alternatively, the domestic sourcing is appreciated for its higher labor standards and manufacturing quality, as well as marketing appeal for items manufactured locally and greater payment security. But, a common issue with limiting the factory choice is the inability to get a particular item made locally.
Starting the search
Once the preferred production location has been identified, it is necessary to look at the different options for finding a suitable factory or manufacturing plant.
A great place to start the search is the online directories. They list a wide range of suppliers, wholesalers and manufacturers that are based overseas and domestically.
A visit to the local library can give access to several manufacturer directories that aren’t normally available to view for free by the general public. They are often reserved for places like the library and subject to a monthly subscription fee. This type of directory is a great choice for those in search of the local wholesalers and manufacturers.
Many of the most promising leads come from personal referrals from family members and friends. Even if a particular factory isn’t the right fit for your needs, you can still ask the factory for other contacts to see if they would be the more appropriate fit.