Here’s a solid 7-Point Checklist to help you find a new supplier or manufacturer for your products.
1. Find a supplier or manufacturer that specializes in your product.
If you find a supplier who claims to make t-shirts, and also computers, they’re NOT a manufacturer. They are a trading company. And probably not a good one.
True manufacturers specialize in a singular product category, honing their expertise over several years. They’re backed by specialized equipment, a skilled workforce, and a robust network of material suppliers. It’s highly improbable, almost unheard of, to find a factory where one corner is dedicated to sewing apparel and another corner is buzzing with CNC machines chiseling out metal parts. Imagine that. Would be weird, right? So when your “supplier” is offering to quote products that are completely unrelated to each other, it’s a red flag.
But why does this really matter? Most trading companies lack a deep understanding of your product, or any product. Put simply, this leads to a higher probability of defects and mistakes. They don’t know what to look out for when managing the order with the actual manufacturer, they don’t know how to set up quality controls for that product, and they probably don’t have a strong relationship with the factory they hired to do the job. When things inevitably go sideways, the factory may not care enough about their relationship with the trading company to offer support and fix the issue. You’ll be left high and dry, often without a hint of remorse. Their brazenness in attempting to convince you that the flawed product in fact does meet standards will astound you.
2. Don’t assume you need to find a supplier in China.
Mexico’s rise towards becoming the main supplier for the US is a trend that businesses can’t afford to ignore. Beyond just proximity, Mexico offers distinct advantages such as tariff-free trading and impressively swift delivery times, often within a week. Undoubtedly, Mexico is cementing its position as a strategic partner in global trade.
If you’re not at least planning to find a supplier in Mexico as a backup and safeguard your company against potential future disruptions in the global market, consider this the memo.
3. Request prices from more than one supplier.
Getting the right product at the right price is always an important aspect of finding a new supplier.
I like to gather at least three quotes. And it’s not just the high ones that make me pause; those super low quotes can be eyebrow-raisers too! Sometimes, they might not really “get” what you’re asking for, or they might be flat out cutting corners on quality. It’s all about finding that balance between getting a good deal, and getting what you pay for.
4. Order samples of your product before placing a full order.
Always order generic or even custom prototype samples of your product before diving into a full order. It might be a small added cost and take a bit of extra time but trust me, it’s a small step that could save you loads of time and cash down the road. Better safe than sorry, right? Right.
5. Start early on your effort to find a supplier.
If you wait too long to start conversations with new suppliers, you won’t have time to ask collect the quotes, ask the questions, and order samples as mentioned above. Rushing this part increases the risk a ton.
Keep in mind, you might need an adjustment after the first sample and want to order one more sample before the full order. Starting early buys you time for the unexpected. If you’ve ever been stressed out waiting for an order to arrive, then you understand the importance of managing time with your orders.
6. Most important – Never send payment internationally by bank transfer, wire, ACH, T/T, or MoneyGram!
Use an escrow payment so that your money is held by a trusted 3rd party until you receive your order. That’s how orders work on Zipfox. Alibaba claims to do that with their trade assurance feature, but you can decide for yourself if you feel comfortable letting them handle disputes when. you have a problem.
7. Start small.
If you have the time, start with a smaller order on the first go around. Things can change a lot between making one sample and producing a full order. Before you put a lot of cash on the line, be sure your new supplier has the ability to mass produce with the same quality as the sample. You might want to make an adjustment or two before they start pumping out truckloads for you, and you’ll be glad you didn’t start with your standard quantity right out of the gate.
Starting the process early allows you the luxury of time to take all these steps properly and protect yourself from unnecessary hiccups.
Let us know if this helps, or if you have any other tips we should consider when choosing a new supplier.
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