10 Things to Check Before Signing with a Manufacturer | Sourcing Checklist

1. Company Reputation and Track Record

A manufacturer's past performance is often the best predictor of future reliability. Take the time to thoroughly research their background. Look beyond their website and evaluate their real-world experience and reputation in the industry.

Here’s what to check:

• Years in operation — Established manufacturers are more likely to have stable processes and experienced staff.
• Clients they've worked with — Look for brands similar to yours or in the same industry.
• Experience in your product category — Specific expertise reduces the learning curve and risk of errors.
• Case studies and success stories — Real examples show how they’ve helped other businesses grow.
• References or testimonials — Reach out to past clients if possible and ask about communication, quality, and delivery.

A reliable manufacturer will be open and transparent about their track record and proud to share proof of their work.

2. Certifications and Industry Compliance

Verify that the manufacturer meets all required certifications and regulatory standards relevant to your product and market. Depending on your product and target market, you may need:

• ISO 9001 for quality management
• RoHS, FCC, or CE for electronics
• GMP or FDA approval for cosmetics and consumables
• Sedex, BSCI, or WRAP for ethical labor practices

Certification shows that they follow standardized procedures and are regularly audited. Always verify documents via third-party directories or certification websites.

3. Production Capabilities and Equipment

Can the manufacturer meet your current production requirements and support future growth as your business scales? Start by understanding the manufacturer’s technical expertise and production capacity:

• Do they specialize in your product type or materials?
• Can they customize or improve upon your designs?
• Are they equipped for mass production or only prototypes?
• Do they handle in-house production or outsource it?

Touring the facility, either virtually or in person, can give you valuable insight into their operational capabilities. If their equipment is outdated or running at full capacity, you may face delays or quality issues down the line.

4. Minimum Order Quantities (MOQs)

Before you move forward, make sure the manufacturer’s minimum order quantity (MOQ) aligns with your current stage and inventory strategy. Every factory has a production threshold below which it’s simply not profitable for them to operate. That’s why it’s important to clarify:

• MOQ per SKU, color, or size
• Price breaks for larger quantities
• Flexibility in initial trial orders

High MOQs can often be managed by negotiating a tiered approach. For example, you might begin with a smaller initial run of 500 units and gradually increase to 2,000 units as trust and demand grow.

5. Quality Assurance Processes

Consistent product quality should never be negotiable. A reliable manufacturer must have a well-defined quality assurance (QA) system in place to catch issues before products reach your hands. Start by asking about their internal quality control procedures, including how they inspect raw materials, monitor production stages, and check finished goods before shipment.

Most professional factories follow a structured process that includes:

• Incoming Quality Control (IQC) to inspect raw materials
• In-Process Inspections at key stages of production
• Final Random Inspections before packaging and shipping

To verify their claims, ask the following:

• Do they permit independent third-party inspections (e.g., SGS, Intertek)?
• What is their policy on handling defective units or rejected batches?
• Can they share past quality control reports or defect rate statistics?

A trustworthy manufacturer won’t just claim to have quality processes. They will have trained QA staff, documented procedures, and clear evidence to back it up.

For more insight into how manufacturers ensure consistent standards, don’t miss our blog on Quality Control in Manufacturing. It covers essential practices that help prevent defects and maintain product integrity.

6. Sample and Prototyping Policy

Before moving into full-scale production, it's essential to request physical samples or prototypes. This step gives you the chance to evaluate the product’s quality, materials, finish, and functionality firsthand. It also helps you identify any adjustments needed before committing to a large order.

When discussing samples, be sure to clarify:

• How long it will take to produce and deliver them
• Whether sample fees are refundable if you proceed with production
• How many revision rounds are included in the sampling process

Avoid relying solely on digital renderings, photos, or verbal assurances. Physical samples are your best defense against costly mistakes and unmet expectations.

7. Pricing Structure and Payment Terms

A clear, itemized quote can save you from unexpected costs later. Ask for a complete pricing breakdown that includes tooling, packaging, shipping, taxes, and customization. Also, clarify payment terms. Do they require 30 percent upfront and 70 percent after inspection? Are there penalties for delays? Avoid vague or overly simple quotes that could conceal hidden fees.

A reliable quote should include:

• Unit price at various quantities
• Tooling or mold fees (if applicable)
• Packaging (standard or custom)
• Sample costs (refundable or not)
• Shipping terms (EXW, FOB, CIF)
• Payment terms (30/70, L/C, etc.)

Ask for a pro forma invoice to make things formal.

8. Communication and Language Proficiency

Strong, clear communication is the backbone of a successful manufacturing partnership. It’s not just about replying quickly — it’s about how well the supplier understands your specifications, timelines, and product expectations. Poor communication, especially with overseas manufacturers, often leads to delays, misunderstandings, or costly mistakes.

Look for a manufacturer that assigns a dedicated, English-speaking account manager or project coordinator. They should:

• Respond within 24 hours
• Provide clear and detailed updates during production
• Use visual confirmations like photos or videos
• Communicate through reliable channels such as WeChat, Alibaba chat, or email with clear summaries

You should feel confident that they’ll respond quickly, honestly, and consistently. If communication is slow or unclear during early discussions, it’s a warning sign of what’s to come.

9. On-Site Audits or Factory Visits

Factory audits are one of the most effective ways to confirm whether a manufacturer is operating legitimately. They give you firsthand insight into working conditions, labor practices, cleanliness, production standards, and overall professionalism. This step is especially important when dealing with overseas or unfamiliar suppliers.

Whenever possible, visit the factory in person. If that’s not feasible, hire a third-party inspection firm or request detailed evidence to validate their claims. Here’s what to look for:

• A valid and verifiable business license
• Verified listings on platforms like Alibaba (Verified Supplier) or Made-in-China
• A factory walkthrough video showing their facilities and equipment
• Authentic photos of staff, machinery, production lines, and certifications

These checks help protect your investment and ensure you’re working with a professional operation — not just a trading company posing as a manufacturer.

10. Contracts and Intellectual Property Protection

Once you're satisfied with everything else, don’t skip the legal side. Draft a formal contract that outlines production details, timelines, payment milestones, quality expectations, penalties for breach, and clauses for intellectual property protection. This is especially crucial if your product involves proprietary designs or technology. Always involve a legal professional to review contracts before signing.

Protect your IP through:

• Mutual NDAs (Non-Disclosure Agreements)
• NNN Agreements (Non-disclosure, Non-use, Non-circumvention) — especially in China
• Patent/trademark registrations (US, EU, CN)
• Ownership clauses in the contract (for molds, tools, designs)

Also check their track record: Do they have a history of selling client designs on Alibaba or other B2B platforms?

Pro Tip: Work through sourcing agents or firms with legal presence in your country to safeguard your IP rights.

For a deeper look into common challenges businesses face after onboarding a supplier, check out our guide on the Top 5 Contract Manufacturer Problems and How to Solve Them.