Factory Selection Guide (Part 1/2): 10 Key Factors

When seeking contract manufacturing for branded products, your choice of factory will directly impact product success. As professional consultants with extensive Asian procurement experience, we've systematized ten assessment dimensions to provide a framework for supplier due diligence. This first part focuses on five fundamental elements:

Foundation-Level Assessment

1. Specialization Alignment
   Look beyond equipment lists to verify genuine expertise in your product category. Ask "What percentage of processes are conducted in-house?" and "What's your experience with similar products?" to validate depth of expertise

2. Quality Systems
   Certificates are just the starting point. We recommend observing inspection processes firsthand, understanding defective product handling mechanisms, and confirming whether quality teams have production halt authority

3. Capacity Verification
   Request to see current production lines and review production schedules. Be cautious of factories that consistently claim "ample capacity" - reasonable utilization rates typically range between 70%-85%

4. Delivery Management
   Break down timelines into three phases: raw material procurement, production cycle, and logistics. Experience shows that the real focus should be on the capacity of bottleneck processes

5. Cost Structure
   Insist on detailed cost breakdowns. Pay special attention to mold cost amortization methods, price tiers corresponding to Minimum Order Quantities (MOQ), and cost calculation rules for engineering changes

Advanced Considerations
6. Communication Protocols
Verify key contacts' bilingual capabilities, establish standard response times and emergency handling procedures. Consider conducting test video conferences

7. Geographical Advantages
   Beyond logistics costs, evaluate industrial clustering effects. Complete supply chain support within 50 kilometers significantly impacts responsiveness

8. Intellectual Property Protection
   Request to review NDA templates and understand document management system access controls. Superior factories proactively demonstrate physical segregation measures

9. Sustainable Development
   Go beyond basic audit standards to examine specific metrics like energy usage data and wastewater recycling rates. These are becoming core requirements for international brands

10. Industry Reputation
    Beyond client references, consult industry associations and material suppliers. Particularly note feedback from clients with 5+ years of collaboration

(Part 2 will delve into practical verification methods, including factory audit techniques, sample evaluation approaches, and key observation points during trial production orders)