The first question on the minds of any brand when thinking about a launch to market: What will this cost? While certainly of significance, cost should not be the sole determining factor when choosing the best manufacturer for a brand’s needs. Cost should always be second to credibility and commitment of the manufacturer, says Jernej Klopčič, director of business development at PharmaLinea: “A question to ask oneself is what could be the cost of choosing the wrong partner and having to find another, or—even worse—recall products from the market.” Recalls are quite rightly one of the greatest fears for brands. Not only do they have great cost implications, but recalls could harm a brand’s reputation and have long-lasting sales impact on current and future customers. Additionally, Dominik Guber, co-founder & CEO at Pure Flavours, suggests brands should think about their flexibility (custom recipes, low minimum order quantities), time frames (lead time), transparency, and communication needs. Building on the advice of these experts, Javier Berterreche, business development manager at Bioinicia, notes that reliability and supply chain security are critical points that must be considered. This has been demonstrated during the pandemic, when many processes have been severely hamstrung due to supply chain breakdowns.
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Klopčič also emphasises the importance of supply chain security, recommending that brands ask questions such as: How close are they to their suppliers? Do they form long-term partnerships with ingredient manufacturers, or do they perform spot-buying from the current cheapest offer? Do they take any precautionary measures to secure their supply chain for the event of shortages?
On top of a robust supply chain, you’ll want full confidence that your manufacturer understands your product and its unique quality control requirements. As an example, Klopčič cautions pharmaceutical brands to pay attention to whether a supplier prospect even acknowledges the challenge of product stability—not only organoleptic stability, but stability of ingredients in finished products. Then there’s commitment. You can have the best manufacturer in the world, but if they won’t respond and support you in a timely manner because you aren’t their main client, then their quality services might not help you much. You can identify the level of commitment through early responsiveness in early stages of communication, Klopčič says. “What sets manufacturers apart early on is the speed and manner of professionalism seen in responses to businesses’ inquiries. While it may sound basic, the responsiveness a company exhibits from the first moment on is a good indicator of what communication will be like throughout the business relationship.”
Additionally, Klopčič notes that overpromising is a red flag. “Using nothing but superlatives, openness to all and any business opportunity, and unrealistic timelines are to be looked out for. Frankness, down to earth communication, and the simple “no” can be your best indicators for a healthy relationship and the products actually contributing to your brand image.” A final consideration is a manufacturer’s potential to support sustainability goals of the brand. In addition to environmentally conscious production facilities and ethical labour, a partner could help brands discover new practices or materials, such as packaging, that can be built into the brand’s value proposition.
How many years of manufacturing experience does the potential partner have? It makes no business sense to take your critical process to an inexperienced partner who might need to go through a steep learning curve to properly support you.
Have they carried out similar projects for similar products and similar companies?
Are they used to delivering the size and volumes you need?
Can they support us in solving potential issues or optimising processes?
Do they bring any additional knowledge beyond running a production line?
Do they have a track record of meeting deadlines and commitments?
Can the manufacturer meet the needs for kosher or halal certificates? Could they support US Food & Drug Administration (FDA) permits for trade in the United States?
What happens if something goes wrong? How much liability are we willing to take on? How much extra are you willing to pay for the partner to take on more liability?
If there is some element of co-development involved, who will own any intellectual property that comes out of the project?
What measures or business systems do they have in place to ensure good project management and communication?
Do they meet the relevant quality standards? Can they supply certificates of analyses and production logs?
What is their track record and reputation?
Do they have case studies and references to prove their track record and capabilities?