How To Find a Manufacturer or Supplier for Your Brand (2024 Guide)

Ryan Patrick

• 13 min read
How To Find a Manufacturer or Supplier for Your Brand (2024)

Before the internet took over the world, startups relied heavily on trade shows, local directories, professional networks, and referrals to find a supplier or manufacturer. The right manufacturer or supplier can turn a new idea into reality.

But thanks to the internet, today, you don’t have to worry about how to find a manufacturer or supplier for your brand as it is a few clicks away. Anything you want to start a business is available online. A single online search can get you various product quotes, bids to compare, and even an opportunity to check a manufacturer’s credentials.

A manufacturer produces goods for sale in bulk, ranging from household applications to cars to clothing. Manufacturers convert raw materials into finished goods using machinery, tools, and human labour. Manufacturers produce goods in bulk while maintaining efficiency and consistency in quality standards.

But how do you find the ideal manufacturer for your brand? Given the abundance of worldwide manufacturers, how can you determine who suits your needs? In this guide, Incorpuk will help you find a suitable supplier or manufacturer for your brand and answer any questions or concerns you might have about them.

What is a Manufacturer?

Manufacturers transform raw materials into finished goods and distribute them to wholesalers, retailers, or consumers. Some manufacturers produce simple products, while others create more sophisticated products. A manufacturer is known to specialise in specific product lines, such as plastic, glassware for different uses, or cardboard. Any business owner wanting to curate an extensive inventory must establish connections with multiple manufacturers to ensure a smooth business flow.

What is a Supplier?

A supplier offers goods or services to other businesses or consumers but may not be involved in manufacturing. Instead, suppliers can be wholesalers, traders, or distributors who acquire goods from a manufacturer, wholesaler, or other suppliers and then provide them to other businesses or the end consumer.

A supplier’s primary goal is to ensure that products or services are available and delivered promptly to their clients. Although the terms manufacturer and supplier are used interchangeably, it’s crucial to understand the differences when starting a business.

Manufacturer Vs Supplier

Suppliers are entities that can provide inventory needs to anyone. They encompass manufacturers, distributors, and wholesalers.

Before you search for a manufacturer or supplier, there are a few things you need to know before making a decision.

The type of supplier you partner with will depend on your eCommerce business model. By understanding this, you’ll know the terminology for your research. Here’s a list of different supplier options:

  1. A manufacturer who turns your product idea into reality.
  2. A supplier can also be a manufacturer, distributor or wholesaler who buys existing brands and products.
  3. A drop shipping company that supplies goods and fulfils orders of existing brands and products.

Local vs. International Suppliers

When looking for a supplier, you can source locally or internationally. Although it may depend on the kind of business you’re venturing into, it’s a brilliant idea to have two manufacturers: domestic and abroad.

Your local manufacturer can be a backup plan while the overseas supplier takes the lead. Having two suppliers will prevent you from running out of products and disappointing customers. If the overseas supplier lags, you can return to your local supplier to ensure smooth business operations.

In reality, local suppliers are often more expensive, meaning your profit margin will be lower, but it’s better to keep customers happy than delay shipments. On the other hand, sourcing products overseas is cheaper, but you can run into unforeseen difficulties like incorrect orders or delayed delivery.

Asian countries like China, India, and Vietnam are some of the cheap overseas countries from which to source your products.

Benefits of a Local Manufacturer

You can work with a domestic manufacturer to enjoy the following benefits:

  1. Quality Control—Partnering with a local manufacturer allows you to oversee the production process from start to finish. You can visit the factory anytime to ensure the product meets all specifications.
  2. Strong Relationships - Building a personal relationship with local manufacturers is easy since you’re nearby. As a result, there’s more trust and clear communication because you understand each other.
  3. Shorter delivery Times—A local manufacturer is closer to you and will take a short time to deliver finished goods. Plus, you can monitor market trends and make changes when necessary.
  4. National Pride and Marketing Advantage - Some consumers are indigenous and prefer products produced locally. It’s a common belief that local goods are original and of higher quality.

Benefits of an Overseas Manufacturer

Finding a manufacturer from abroad will be favourable to you in different ways. They include:

  1. Cost Efficiency - Some overseas countries have cheap labour and affordable raw materials.
  2. Scalability - Some international manufacturers run extensive facilities that can produce products in bulk promptly.
  3. Diverse Skill Sets—Some regions specialise only in producing particular products or technologies. As a result, they offer expertise you might not find locally.

How to Find a Manufacturer or Supplier for Your Brand

If you’re starting a business and want to launch your product line, finding the right manufacturer is crucial. It may be challenging to find a manufacturer, especially if you’re getting started, but with patience and resilience, you’ll get there. Finding a manufacturer is not just about mass-producing items but forging a business relationship for years. Follow this guide to aid you through this crucial process.

1. Know What You Need

Before sifting through multiple manufacturers, you must first understand the products you need to communicate them to your manufacturer. The requirements of your product include:

  1. Details of the specific product materials
  2. Quality standards
  3. Production volume

By defining these details from the onset, potential manufacturers will know your product needs and ensure they meet your expectations. Provide precise information to potential manufacturers to avoid a bumpy ride in the future filled with frustrations and disappointments.

2. Conduct Market Research

Conducting market research for your product type helps you understand the market landscape, including demand, prices, and legal aspects. Launching a product line in some niches, such as cosmetics, needs certifications and regulations from the EU Cosmetics Regulation.

To this effect, you can’t indulge in the business without getting relevant permits and licensing. Besides, it will be helpful to find out which manufacturing countries favour your product category and focus your research on them. From the research you carry out, be sure to answer these questions:

  1. Can your manufacturer handle custom orders? Assess whether the supplier can produce the desired product and check whether they have the skills and resources needed.
  2. What is the production time? Can your potential manufacturer produce and ship items promptly? Look for a manufacturer who can deliver your products as ordered.
  3. What are the shipping costs? Shipping orders account for a large part of small business expenses. Therefore, you should know your manufacturer’s shipping costs to understand how they affect the business.
  4. Do they have Minimum Order Quantities (MOQs)? Don’t ask the question directly, as it may cause manufacturers to avoid working with you. However, it’s essential to know the minimum products they can produce before they start making your product.
  5. What are the charges per unit? Find out the general cost per item when production is high and for MOQs. It’s a rule of thumb that the higher the order, the cheaper the price, but it won’t hurt to enquire.
  6. Can the manufacturer grant you exclusivity? If they allow you to purchase a tool to produce your product, they shouldn’t use it to create for any other person. Ask for exclusive services they can offer you, like territorial markets or private labels on goods.
  7. Do you pay for a set-up? Some manufacturers might charge a fee to start producing your products.
  8. Do they have a defect policy? It’s good to learn how they handle defects and who pays for the costs, including shipping.
  9. What is the manufacturer’s sustainability and ethics? Please enquire about the factory’s conditions and how they impact the environment and workers.

3. Research Available Manufacturers

When looking for a potential manufacturer or company that can produce and deliver your product on time, you have to narrow it down to the most appropriate. With the internet flooded with everything you might need today, you need a formula to help you get the job done perfectly.

There’s no perfect supplier, but whoever you partner with for your e-commerce business must be NEAR EXCELLENT. Follow these steps to research manufacturer options:

  1. Be Clear on Your Requirements - Explain everything you need for your product in specifics: materials, particular features or customisations, dimensions, and quality standards. With such detailed information, you can narrow your manufacturer search to the entity with appropriate capabilities.
  2. Utilise Online Resources - The internet is highly resourceful when finding information. You can use different search engines, online directories, and industry-specific platforms to see a list of manufacturers who match your specifications. Find companies with reputable experience in your product niche. Look for reviews from past clients, and don’t leave out the negative testimonials (if any), as they’ll enlighten you on what might befall you.
  3. Attend relevant events (Trade Shows and Exhibitions). These events are excellent opportunities to network face-to-face with manufacturers in your niche, view different product samples, and discuss your needs in detail.
  4. Get Referrals—Join professional networks or entrepreneur communities to get recommendations on reputable manufacturers. Personal referrals are preferable as they point you in the right direction and help you avoid potential pitfalls in your search.
  5. Authenticate Credentials - Once you have a list of potential manufacturers, do due diligence to verify their credentials and compliance with industry regulations. Some reputable qualities include evident quality control measures, healthy business practices, and a record of past successful projects.
  6. Ask for Quotes and Proposals—Request selected manufacturers to provide quotes and proposals that meet your product specifications. Compare prices, delivery times, production capabilities, and terms of service to evaluate who is the best match for your business.

Conducting thorough research on manufacturer options will help you make informed business decisions and build partnerships that contribute to the success of product development.

4. Communicate Your Designs

Once you talk with a potential manufacturer, tell them about your design to know if they can create it. Some manufacturers have a detailed development process that includes prototyping and 3D modelling, but the prices are higher.

So, how do you communicate your ideas to your manufacturer effectively? You can use the following to communicate your ideas to the manufacturer:

  1. Detailed instructions
  2. Sketches
  3. Reference photos

If your potential manufacturer can’t design, hire a creative freelancer to create your idea on Fiverr or Upwork. Look for freelancers with experience in:

  1. Product design
  2. Indstrustial design
  3. Computer-aided design (CAD) experts

Alternatively, you can find a local designer to develop custom moulds and prototypes for your product. Designing your product idea instead of the manufacturer is more affordable, and you deliver better results.

5. Order and Compare Samples

After giving your manufacturer a design of your product, request samples and test them before embarking on production. Depending on the quality of the samples you get, you decide on the next step: if the samples are satisfactory, you can proceed to production.

But, if they’re substandard, you can request a modification or work with a different manufacturer. From the samples, save yourself some of them as control samples. They can also be used as forensic samples for quality control and for consistent production of consumer products.

6. Request Quotes

Once you know the manufacturer you’ll work with, request a quote based on your product details. To receive accurate quotes, ensure you provide detailed information about your requirements. You can also ask for samples of their previous work to assess their quality standards and to determine if they can meet your specifications. If anything is amiss, like colour difference, you can use the control sample to show your manufacturer the difference between the two products.

7. Evaluate Packaging Options

Most manufacturers offer customers packaging options as part of their full service. Be clear on your packaging preferences upfront and see if the manufacturer can fulfil your wishes. Also, assess if your product needs special packaging requirements, like food, cosmetics, or supplements. You should also specify if the products need primary packaging in bottles or secondary packaging in paper boxes.

6. Negotiate Partnership Terms and Sign Contracts

Once you have a competent manufacturer and product samples that fit your criteria, you’re almost ready to place your order. However, there’s one more step before committing to the production process.

You need to negotiate the terms of your partnership or payment, and when doing so, have the manufacturer in mind to make a fair deal. The goal here isn’t to exploit the manufacturer but to get the best price that benefits all parties. When both the manufacturer and yourself are happy, you build a healthy relationship for the long term.

Please review the terms of service meticulously to ensure they align with your business goals. Additionally, ensure you seek clarification for anything that seems ambiguous. Once all parties are satisfied, you can sign the contract to formalise the manufacturing agreement.

8. Start with a Pilot Production Run

Before going into full-throttle production, consider starting with a smaller pilot run to minimise risks and ensure your products will be as expected. From a pilot run, you can arrest production issues early enough. Often, even with a unique business idea, the product may exist in a different form. Instead of reinventing the wheel, you can use a white or private label on your products before customising them.

9. Place Your Order

At this point, you’re satisfied with the work your manufacturer is doing, and you can place your order in bulk. Be clear on the quantity you want, lead time, and a delivery schedule to ensure you’re never low or out of supply.

Before placing an order, confirm prices, payment terms, and any other charges upfront to avoid future surprises. Throughout the production period, maintain open communication lines with your manufacturer to ensure no issues are carried forward or overlooked. Regular communication will ensure any problems during production are addressed in real-time and the manufacturer will deliver on time.

Risks Associated with Finding a Manufacturer

Finding the ideal manufacturer to produce your product is one of the most crucial decisions you’ll be making for your business. The right manufacturer will produce high-quality goods, deliver on time, and satisfy customers. Conversely, partnering with the wrong supplier can lead to:

  1. Financial losses
  2. Damaged reputation
  3. Potential legal complications

To avoid having the worst business experience, beware of these risks as you evaluate potential manufacturing partners:

1. Quality Variability

Quality inconsistency is the most common risk you can experience with your manufacturer. If they don’t maintain uniform quality standards in all batches they produce, your brand’s reputation is at risk.

While a pilot run might be impeccable, larger productions are not guaranteed to maintain the same quality standard. Potential customers will be confused and dissatisfied, increasing the rate of returns in the market.

2. Communication Barriers

Effective communication is a challenge when outsourcing products overseas due to language differences. Miscommunications can lead to deviation from required standards, delays, and unforeseen additional expenses.

3. Intellectual Property Theft

The designs you share and product blueprints can expose your business to intellectual property theft. A manufacturer can reproduce your product for other clients or, even worse, sell it to competitors. Thus, you need a robust Non-Disclosure Agreement (NDA) to protect you from fraudulent activities.

4. Financial Instability

In search of a product manufacturer, they partner with an entity facing financial troubles. As a result, they might compromise on quality to cut production costs, leading to delivery delays. In worst-case scenarios, such a manufacturer can cease all operations, jeopardising your business.

5. Ethical Concerns

You need a true manufacturer who honours its ethical practices. Working with someone who doesn’t respect manufacturing ethics risks your brand’s reputation. Some ethical malpractices include child labour, exposing workers to unsafe working conditions, or wrongful dumping of factory waste, which harms the environment.

Types of Manufacturers

Manufacturers employ a systematic process that converts raw materials to finished products. They have specialised machinery to design and assemble items according to customer guidelines. Some productions involve specific components, while others encompass finished products.

Two manufacturer classifications depend on their role in production. Some manufacturers use giant machines to produce high-quality products for clients. Others design products as per the client’s instructions and then make them. Here are the different types of manufacturers:

1. Original Equipment Manufacturer (OEM)

An OEM is a company that produces specific parts of a product guided by a client’s instructions. These components are assembled with other factory parts to make a final product.

For instance, Bosch produces different car parts like spark plugs and car batteries used by vehicle companies like Toyota and Ford.

2. Original Design Manufacturer (ODM)

An ODM, also known as a private label manufacturer, can design, develop, and produce products for other companies; they make a complete product ready for branding. For example, Dell, Lenovo, and HP laptops get their machines from Compal Electronics and then label them.

3. Contract Manufacturer (CM)

A contract manufacturer (CM) produces goods for another firm bearing its label or brand. The client company supplies the CM with its design or production formula, which completes the manufacturing process.

The role of an OEM might seem similar to that of a CM, but they (CM) offer more comprehensive services beyond manufacturing. They also manage the sourcing of raw materials, quality checks, and assembling and packaging of finished goods.

4. Wholesalers and Distributors

Some manufacturers use the Direct-to-Consumer (DTC) strategy, selling products directly to consumers. Others still rely on intermediaries to help them sell their products in bulk. So, who are wholesalers and distributors?

  1. A distributor is the first point of contact in the manufacturer’s supply chain. They agree with a manufacturer, allowing them to buy, stock, and supply their products in a specific region. Distributors are essential in this relationship as they help market products and provide after-sale services and technical aid where necessary.
  2. A wholesaler’s primary role is purchasing different products at a lower price from manufacturers or distributors and then reselling them to retailers at lower prices. Retailers then set new prices and sell the products to the end consumers.

Unlike distributors, wholesalers work with manufacturers abroad without having to fulfil exclusive contracts. Wholesalers aim to make available a wide range of products retailers can’t access.

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Frequently Asked Questions

How can I identify the manufacturer of a particular product?

Manufacturers display their company name or logo clearly on a product. If you can’t find the logo on a product, search online to find information on who produces the product. Alternatively, you can contact the company to enquire about the manufacturer of a product.

What name identifies a manufacturer or product?

A brand name is a unique word that identifies a manufacturer or product. It’s a word that a specific company uses to identify and set apart its product or service from similar brands in its category.

How can I introduce myself as a brand?

When introducing yourself as a brand, be transparent, brief, and precise to let your audience know who you are, what you have to offer, and its value. Don’t focus on only what you do; tell the audience what sets you apart from other brands. In other words, please give them a reason to listen to you attentively.

In Summary

A manufacturer or supplier is an entity that makes available products for sale to business owners. When you start a business, you must find a suitable manufacturer or supplier for your brand to ensure business success.

Hopefully, you’re now conversant with how to find a manufacturer or supplier for your brand. This step is vital for anyone aspiring to launch a business, and you need to find a competent partner to work with your new venture.

Finding suitable suppliers or manufacturers may be challenging, especially when looking for one overseas. However, by following our guide, you’ll be able to make informed decisions as you explore new territory.

The journey to starting and running a business isn’t straight, but your challenges shouldn’t scare you off. Setbacks are widespread, and you can overcome them by working with the right partners, being patient, and gaining determination.

Getting two (domestic and overseas) is a wise strategy to keep you safe as you find suppliers or manufacturers. Whenever your overseas supplier falls back on production for whatever reasons, you can fall back on your local supplier and maintain the supply chain running smoothly.

Although local suppliers may be expensive, you can be assured that you have control and enough stock for your customers. International manufacturers might be cheaper, but delays in production or shipping may damage your business. Thus, the advantages of a domestic supplier outweigh those of an overseas manufacturer, but keeping both is good for business. Do you have any questions about how to find a manufacturer or supplier for your brand? Kindly contact one of our experts here.