Step-By-Step Guide to Product Sourcing

Reliable product sourcing is integral to your company’s ability to supply its products reliably. Finding a manufacturer for your products and components is a challenge if you don’t know where to start looking and aren’t aware of common pitfalls along the way.

To help demystify the process of factory sourcing, we offer this step-by-step guide and some pro tips for sourcing high-quality, cost-effective contract manufacturing.

How to Begin the Process of Product Sourcing

Getting started with product sourcing can be the hardest part, especially if you have a highly technical or complex product, or if you’ve never outsourced production before. Your own professional network can be a good source of recommendations; however, depending on the product, you may have to search more broadly. It’s always a smart idea to obtain references from manufacturers’ past customers to gain further insight into what it’s like to work with them.

Your product manufacturing partner(s) should have a good understanding of your exact requirements so you can devote time and energy to additional product development and business growth. For example, if your product requires precision components or specialized manufacturing processes, the manufacturer you choose must have expertise in those areas. This could include access to certain types of equipment, specialized labor, or advanced manufacturing techniques. It may also require the manufacturer to be familiar with specific materials or industry regulations.

Product Sourcing Step-by-Step

Selecting a contract manufacturer that can consistently meet your needs and business goals is the top priority. A dependable manufacturer will help you provide well-made products for your customers on schedule time after time. Spend some time on each of the following considerations when vetting partners for your manufacturing program.

Establish Your Communication Requirements

One of the first things to think about is your communication needs, including the frequency and modes of communication you prefer. Differences in time zones or languages can pose challenges to frequent communication or to clarify the finer points of a design. Will email or text communication suffice for most interactions, or will it be necessary to make phone calls often? Do you anticipate barriers to effective communication? Consider how this will affect overall workflow and your ability to monitor production.

Verify Production Capacity

The manufacturer you choose must be able to meet your production volume and delivery schedule, within reason, consistently order after order. This means they need to have staff in sufficient numbers and with the needed skills, and the types and amount of equipment to fulfill your order and meet quality requirements. It’s also important to verify any minimum or maximum order requirements should your production needs change over time.

Determine How Long the Manufacturer Has Been in Operation

How long a company has been in business, and how long they have done the specific manufacturing work you require, often make it more likely the company has expertise and a record of customer satisfaction. A well-established manufacturer will also tend to have detailed quality protocols in place.

Check the Manufacturer’s Equipment

If you’re familiar with the tools, equipment, and operations required to manufacture your product, parts, or components, make sure your partner has those capabilities and plenty of relevant experience using them for applications in your industry. Some manufacturers provide lists of some or all of their equipment online; however, you should feel comfortable asking directly about their equipment and capabilities, or about any alternatives they may suggest. Also be sure to inquire about their ability to meet any finishing, assembly, or technical cleaning needs your product requires.

Set a Price

Many things affect the price you’ll pay for contract manufacturing. These include material choice and availability, product or part complexity, manufacturing methods, timelines, and the manufacturer’s location.

Another thing that influences price is the choice between an original equipment manufacturer (OEM) and an original design manufacturer (ODM). An OEM is often a cost-effective choice if you have already developed your design for a part or product and primarily need a manufacturer for it. An ODM may cost more; however, it may be the better option if you need more comprehensive assistance with things like design, material selection, and manufacturability analysis, in addition to manufacturing.

Select a Manufacturer That Can Meet Your Unique Needs

With over half a million manufacturers operating in the U.S. alone, it’s important to narrow down your selection to companies within your niche. For help with this, you can use the North American Industry Classification System (NAICS) to identify manufacturers that routinely supply your industry or work closely with it.

Another option is choosing to partner with a company that specializes in manufacturing sourcing, product sourcing, and connecting businesses like yours with the manufacturing resources they need. As an example, Sourcing International is one of North America’s largest supply chain and manufacturing outsourcing companies, and has been in business since 1988. Since then, we have facilitated billions of dollars in shipments. We also have the ability to manage thousands of SKUs and the capacity to complete thousands of inspections. We also have resources to provide what you need, including an expansive network of vetted manufacturing partners.

Product Sourcing with Source International

Source International is here to assist you with all of your factory sourcing and manufacturing program needs. Our team will handle the supply chain, vetting, and management for your product with our network of long-time manufacturing partners. Working closely with our sourcing and manufacturing partners in China and Vietnam, Source International will do the heavy lifting so you can reap the benefits of dependable and efficient product availability.

Our unique approach to sourcing sets us apart from other product sourcing companies. We look for manufacturers that have the capabilities you need, such as CNC machining, injection molding, or die casting, but we ensure the products they make do not compete with yours or your market. In this way, you are assured access to the right manufacturing processes,  equipment, and skills from a provider that’s eager to expand its repertoire.

Contact us today to speak with a member of our team and get connected with the ideal factory for your project.