
Outsourcing production overseas can cut costs by 30 to 50 percent. It can unlock manufacturing capabilities you simply don't have access to domestically. And for many product companies, it's the only realistic path to scaling production without massive capital investment.
But the wrong manufacturing partner will cost you more than you save. Missed deadlines push back product launches. Quality issues force expensive rework or, worse, damage your reputation with customers. Communication breakdowns turn simple changes into weeks of back-and-forth. And by the time you realize the relationship isn't working, you've already invested months of effort and thousands of dollars in tooling and samples.
The companies that succeed with overseas manufacturing aren't the ones who find the cheapest quote. They're the ones who ask the right questions before they commit.
Here are seven questions that will help you separate capable partners from factories that will waste your time and money.
1. What Is Their Actual Specialty?
This sounds obvious, but most companies skip this question entirely. They find a factory that offers the service they need, get a reasonable quote, and assume everything will work out.
The problem is that manufacturing capabilities exist on a spectrum. A factory might technically offer injection molding, but its real expertise is in simple two-part molds for basic components. If your product requires complex multi-cavity tooling with tight tolerances, that factory will struggle. They might still take your order, but you'll pay for their learning curve through delays and defects.
The same applies across every manufacturing process. If you need blow molding services, find a supplier with documented experience producing parts similar to yours. Not a factory that added blow molding to their capabilities list because they bought one machine three years ago.
Ask specifically: What percentage of your production involves this exact process? What industries do you primarily serve? Can you show me examples of parts with similar complexity, tolerances, or materials?
Factories that genuinely specialize in what you need will have detailed answers. Factories that are stretching their capabilities will give you vague responses about being able to "handle anything."
2. Can They Provide Verified References?
Any manufacturer can show you photos of finished products. References from actual customers tell you what it's really like to work with them.
Ask for contacts at two or three companies in your industry, or at minimum, companies with similar production requirements. Then actually call those references. Don't just send an email that gets ignored.
When you talk to references, dig into specifics. How does the factory handle problems when they arise? How responsive is their communication? Have they ever missed a deadline, and if so, how did they handle? Would you use them again for your next product?
Pay attention to hesitation or qualified answers. A reference saying "they're fine" is very different from one saying "they've been a great partner and I'd recommend them without reservation."
If a factory can't provide references, or if they stall and make excuses, treat that as a serious warning sign. Established manufacturers with good track records have customers willing to vouch for them.
3. What Are Their Minimum Order Quantities and How Flexible Are They?
MOQs vary dramatically between suppliers, and this single factor can determine whether a partnership is viable.
Some factories won't touch orders under 10,000 units. Their entire operation is optimized for high-volume production, and small orders disrupt their workflow and eat into their margins. Other manufacturers specialize in lower quantities and can profitably produce runs of 500 or even 100 units.
Neither approach is inherently better. What matters is alignment with your actual needs.
Think beyond your first order. Where do you expect to be in 12 months? If you're launching a new product, you might start with 1,000 units for market testing. But if the product succeeds, can this factory scale to 50,000 units per quarter? Conversely, if you're an established company that consistently needs 20,000 units a month, a factory focused on prototype runs probably isn't the right fit.
Also, ask about flexibility within orders. What if you need to adjust quantities mid-production? What if demand spikes and you need to expedite additional units? Factories with rigid processes will struggle with changes. More agile operations can adapt, though often at a premium.
4. What Does Their Quality Control Process Actually Look Like?
Every factory claims to have quality control. Few actually have robust systems that catch problems before they reach you.
Ask for specifics. At what stages do they inspect? Many factories only check finished products right before shipment, which means defects that occurred early in production have already propagated through the entire batch. Better manufacturers inspect incoming materials, monitor critical process parameters during production, and perform final inspection before shipping.
What's their typical defect rate? Factories should know this number. If they don't track it, that tells you something about how seriously they take quality.
What documentation do they provide? Will you receive inspection reports with measurements? Photos of your specific units? Certificates of compliance for materials? The more documentation they provide, the more visibility you have into what you're actually receiving.
Ask if they offer third-party inspection options. Some buyers hire independent inspection companies to verify quality before shipment. Reputable factories welcome this because it protects both parties. Factories that resist third-party inspection often have something to hide.
For companies in regulated industries like medical devices, quality control becomes even more critical due to compliance requirements that add additional layers of complexity to the manufacturing relationship.
5. How Will Communication Actually Work?
Poor communication causes more overseas manufacturing failures than almost any other factor. A simple question can take days to resolve when you're working across time zones with language barriers and unclear chains of command.
Before you commit, understand exactly how the relationship will function day to day.
Will you have a dedicated point of contact? Talking to a different person every time you reach out creates confusion and dropped context. A dedicated account manager who knows your project makes everything smoother.
What's their typical response time? This varies widely. Some factories respond within hours. Others take two or three days for basic questions. Ask for their honest estimate, and ask your references if reality matches the promise.
What tools do they use for project management? Some manufacturers use shared platforms where you can track order status, view production photos, and communicate in one place. Others rely entirely on email and phone calls. Neither is necessarily better, but you should know what to expect. Many modern outsourcing operations now leverage technology to streamline communication and project visibility.
What language capabilities do they have? English fluency varies significantly. Strong English skills on the sales team don't always translate to the production floor. Find out who will handle technical questions and whether they can communicate directly or if everything routes through a translator.
6. What Happens When Something Goes Wrong?
Problems will occur. A shipment will arrive late. A batch will fail inspection. Specifications will get misinterpreted despite your best efforts at documentation.
The question isn't whether problems will happen. It's how the factory handles them when they do.
Ask directly: Can you tell me about a time when something went wrong with a customer order? What happened and how did you resolve it? Factories with nothing to hide will share real examples. Factories that claim problems never occur are either lying or haven't produced enough to encounter the inevitable issues.
What's their policy on defective products? Who pays for rework? Who covers shipping costs if goods need to be replaced? These conversations are much easier to have before you've signed a contract than when you're staring at a pallet of unusable parts.
Get the answers in writing. A verbal promise to "make it right" means nothing when you're negotiating from across an ocean with limited leverage.
Understanding supply chain risk management principles can help you build contingency plans and set appropriate expectations for your manufacturing relationships.
7. Can They Actually Scale With Your Growth?
Your first order might be 500 units. But if your product takes off, you might need 50,000 units within a year.
Some factories max out quickly. They have limited production capacity, limited floor space, and no appetite for expansion. If you outgrow them, you'll need to find a new manufacturer and essentially start the vetting process over.
Other factories have infrastructure designed for scale. They can add shifts, bring on additional equipment, and ramp production to meet growing demand.
Ask about their current capacity utilization. A factory running at 95 percent capacity can't easily absorb a surge in your orders. A factory at 60 percent has room to grow with you.
Ask about their largest customers. What volumes do they produce for their biggest accounts? This gives you a realistic sense of their upper limits.
Ask if they've scaled with customers before. Factories that have successfully grown alongside their clients understand what that transition requires. Those that haven't may struggle when your orders start increasing.
Finding the Right Partner Takes Work, But It Pays Off
Vetting overseas manufacturers requires real effort. You'll need to schedule calls across time zones, follow up with references, and evaluate capabilities against your specific requirements.
But this upfront investment prevents far larger problems down the line. The companies that shortcut this process are the ones dealing with quality disasters six months later, scrambling to find replacement suppliers while their production timeline falls apart.
Take the time to ask these questions. Get answers in writing. Verify claims with references. The right manufacturing partner won't just save you money on production. They'll become a genuine competitive advantage that lets you bring products to market faster, at higher quality, and with fewer headaches than your competitors.
Disclaimer: This post was provided by a guest contributor. Coherent Market Insights does not endorse any products or services mentioned unless explicitly stated.
