10 Things to Check Before Signing with a New Manufacturer

1. Verify Manufacturer's Certifications and Compliance

The first step in evaluating a manufacturer is ensuring that they operate within industry and regulatory standards. Certifications are not just formalities. They provide evidence that the factory follows structured processes for quality, safety, and consistency.

• International Standards: Look for certifications such as ISO 9001 (quality management), ISO 14001 (environmental management), or GMP (Good Manufacturing Practices). These ensure that the manufacturer maintains systems to control quality, reduce errors, and stay compliant with environmental regulations.
• Industry-Specific Certifications: Different industries demand specialized standards. For example, CE (Conformité Européenne) or FDA (Food and Drug Administration) approvals for medical devices ensure compliance with health and safety regulations. OEKO-TEX® (International Association for Research and Testing in the Field of Textile and Leather Ecology) in textiles guarantees that fabrics are free of harmful chemicals, while UL (Underwriters Laboratories) certification is essential for electronics to confirm product safety.
• Legal Compliance: Certifications alone are not enough. The manufacturer must also comply with local labor laws, wage requirements, worker safety rules, and environmental protection standards. International compliance, such as customs and import/export laws, should also be verified.

Why it Matters: Without certifications and compliance, your business risks customs rejections, fines, or even lawsuits. Worse, non-compliant factories may cut corners, putting your customers and reputation at risk. Certifications prove a manufacturer takes global standards seriously, giving you confidence in their processes.

2. Can They Handle Your Production Capacity and Growth?

Your manufacturer should be able to meet your needs now and in the future. Many businesses fail to plan for growth and end up with suppliers who cannot scale.

• Current Capacity: Ask about their monthly production capacity, number of production lines, and workforce size. Compare these numbers to your projected demand for the next 12–24 months.
• Minimum Order Quantities (MOQs): Some factories require large initial orders, which may not fit your budget if you're starting. Make sure their MOQs align with your business model.
• Scalability: Beyond current needs, ask how they handle seasonal peaks, sudden demand spikes, or expansion into new markets. Do they have the ability to add extra shifts or source more raw materials quickly?

Why it Matters: A supplier that can't keep up will delay your growth. If you need to switch manufacturers later, it could cause costly disruptions. Choosing a scalable manufacturer ensures stability as your business grows and your orders increase.

3. What Quality Control (QC) Systems Do They Use?

Quality control is the backbone of reliable manufacturing. Without it, you risk high defect rates, customer complaints, and product recalls.

• QC Procedures: Ask if they use AQL (Acceptable Quality Limit) sampling methods. AQL ensures batches are tested statistically for defects before shipment.
• In-House QC: Check if they have a dedicated QC team, testing labs, and clear defect documentation. It demonstrates that they are proactive in maintaining standards.
• Third-Party QC: A transparent manufacturer should welcome independent audits and external inspections. Reluctance is a red flag.

Why it Matters: A lack of strong QC processes leads to defective products, high return rates, and loss of brand trust. Strong QC saves money and protects your reputation.

4. Have You Reviewed Their Factory Audits and Past Performance?

Factory audits give you a deeper understanding of how a manufacturer actually operates.

• Technical Audits: Evaluate equipment quality, workflow efficiency, and maintenance practices.
• Social Audits: Review compliance with worker rights, fair wages, and health and safety standards.
• Environmental Audits: With sustainability now a business priority, check their waste management, energy use, and emissions practices.

Why it Matters: Past performance tells you what to expect in the future; a manufacturer unwilling to share audit reports or client references may be hiding poor practices or unreliability.

5. How Strong Is Their Communication and Responsiveness?

Clear communication ensures smoother collaboration and fewer costly mistakes.

• Responsiveness: Do they reply within 24–48 hours? Delayed responses often signal inefficiency.
• Clarity: Are technical explanations and timelines communicated in detail, or do they leave you guessing?
• Dedicated Contact: Reliable suppliers assign an account manager or project coordinator so you always know who to reach out to.

Why it Matters: Poor communication leads to misunderstandings, mistakes, and delays. Strong communication ensures smooth collaboration and faster problem-solving.

6. What Are Their Lead Times and Delivery Track Record?

Reliable delivery is crucial to keeping your supply chain on track.

• Lead Times: Ask how long production and shipment take for different order sizes. Compare this against your sales cycles.
• On-Time Delivery Rate: A dependable manufacturer should meet deadlines at least 90–95% of the time.
• Contingency Plans: What happens if raw materials are delayed or machinery breaks down? Ask how they manage disruptions.

Why It Matters: Delayed shipments result in missed sales, unhappy customers, and reputational damage. Reliable delivery builds trust and stability in your supply chain.

7. Are They Financially Stable and Established?

Financial instability in a manufacturer is a significant risk for your business.

• Years in Business: Established factories with 10+ years of history usually indicate stability.
• Financial Health: If available, review annual reports, credit ratings, or company registrations.
• Client Base: A diversified customer portfolio means they aren't overly dependent on one client.

Why it Matters: If a manufacturer goes bankrupt mid-project, you lose money, time, and market credibility. Choosing a financially strong partner reduces this risk.

8. Is Their Pricing Transparent, or Are There Hidden Costs?

Don't let a low initial quote mislead you. Transparency is key.

• Cost Breakdown: Ask for itemized details: materials, labor, packaging, and overhead.
• Additional Fees: Watch out for costs like tooling, molds, setup, and sample charges.
• Shipping and Customs: Clarify whether freight, insurance, and duties are included or billed separately.

Why it Matters: Hidden costs can inflate your budget. Transparent pricing helps you compare suppliers fairly and plan your finances better.

9. How Do They Protect Your Intellectual Property (IP)?

Your designs, formulas, and trade secrets are valuable assets that need protection.

• Contracts: Always sign NDAs (non-disclosure agreements) and non-compete agreements before sharing sensitive information.
• Local IP Laws: Some regions are more prone to IP theft. Research how strongly laws are enforced in the country of production.
• Practical Safeguards: Limit file access, watermark prototypes, or split production among multiple suppliers for extra security.

Why it Matters: Without proper IP protection, your product can be copied, rebranded, and sold by others, costing you market share and revenue.

10. Have You Visited the Facility or Used a Third-Party Inspector?

Nothing beats seeing the factory with your own eyes.

• On-Site Visits: Pay attention to cleanliness, worker treatment, machine maintenance, and overall organization.
• Third-Party Inspections: If you can't travel, hire professionals to conduct audits, provide reports, and capture photos or videos.
• Surprise Checks: Unannounced visits reveal a more accurate picture than scheduled tours.

Why it Matters: A site visit or audit ensures transparency, uncovers hidden problems, and gives you confidence before signing a long-term agreement.