Product manufacturing services make it quite easy for a startup to bring their idea to market shelves, as they're able to handle low-volume manufacturing runs along with supply chain logistics. Startups are free to concentrate on marketing their products, which allows them to be successful even with limited funds and a small staff. If you have a product idea that you think would be successful, a product manufacturing service can help you create it. To find out how to choose the right manufacturing service for your idea, read on.
Does Your Business Need Design Services?
If your company doesn't have an engineering team, you'll need to find a product manufacturing service that also provides product engineering and design capabilities. These companies connect your team with an engineer that can create detailed product specifications for you, making your product suitable for manufacturing in large quantities. While you can always contract with another company for the design, working with a manufacturing service with an in-house design team will make the process of bringing your product to market more smooth, as you won't need to communicate with multiple companies.
Even if your company has an engineering department with ready-made product specifications, it's still worthwhile to find a manufacturing service with an in-house product design and engineering team. Their engineers can slightly modify your product specifications in order to make manufacturing easier or less expensive, as they know which parts they're able to source inexpensively from their existing supply chain.
Does the Company Manufacture Products Domestically?
You'll most often save a considerable amount of money by outsourcing manufacturing overseas — manufacturing costs are lower, and factories overseas are typically clustered around other factories that produce the components necessary to manufacture your product, making supply chain costs lower.
However, the reduction in cost does come with a downside if you're a small company with little startup funding. It can be expensive to make several trips overseas if you want to supervise the production process, and it's often a good idea to visit the manufacturing facility in person to make sure that production is running smoothly. Speak to multiple product manufacturing services, both domestic and overseas, in order to find out the exact amount that you'll save by keeping production overseas. If the amount isn't significant, you may want to produce your product domestically in order to make it easier to visit the production site.
Can the Company Scale Up Production Runs?
Finally, make sure that the product manufacturing service you work with has the capability to scale up production. Your initial production run may be quite small. For example, many companies only produce a few units in order to have a proof-of-concept prototype that they can show to investors. However, you'll need to increase production if your product is successful on the market, and this is much easier to do when you can build upon a contract manufacturing relationship that you've already created.
Overall, cost should rarely be your primary concern when you're choosing a product manufacturing service that can help bring your idea to the market. Instead, you should focus on finding a company that can ensure that your product is a quality one. A company that can provide you with design and engineering advice, along with having a production facility that's easy to visit in person, will give you the greatest chances of having a successful first manufacturing run, as you're less likely to encounter setbacks along the way that could lead to a delay in production.
At the same time, you should also strive to find a product manufacturing service that can scale up your production runs in order to meet future demand. By keeping these factors in mind, you'll be able to find a product manufacturing service that can meet the needs of your startup company.