A contract manufacturing partner checklist starts with one rule: ask for proof, not promises. Before you sign with a factory, check five things. These are its certificates, its real capacity, its quality records, who owns the designs and what you may audit. This note walks through each one.
1. Certificates: ask what they cover
Many factories hold ISO 9001. It is the best known standard for quality management systems. The current edition, ISO 9001:2015, replaced earlier editions in September 2015. Certification bodies were given up to three years to move existing certificates to it.
A certificate is a good start, but read it closely. Check the name of the legal entity. Check the site address, because a certificate for a head office does not cover a plant in another city. Check the scope, which says what the factory makes. Check the expiry date and the name of the certification body. Then ask the body to confirm the certificate is valid.
The standard asks a company to show it can consistently deliver products that meet customer and legal requirements. It does not prove that a product is good. Treat it as a floor, not a finish line.
Sources: ISO 9001:2015 listing, Standards New Zealand (codehub.building.govt.nz/resources/iso-90012015); IAF news item on the ISO 9001:2015 transition (iaf.nu/?p=1080).
2. Capacity: test the numbers
Every factory says it can handle your volume. Ask for the facts behind the claim. How many lines will run your product? How many shifts? What share of output do current customers use? A plant that is 95 percent full has no room for your rush order.
Ask for a short list of key machines and their age. Ask which steps are done in house and which are sent to other firms. Each hand-off is a place where quality can slip and delivery can slow. If a step is subcontracted, ask for the name of that firm and whether you may visit it too.
Also ask about raw materials. Who buys them, from whom, and how many weeks of stock are kept? A thin supply chain is a hidden capacity limit.
3. Quality records: see the paperwork
Good factories keep records, and they are happy to show them. Ask to see an inspection report from a recent order of a similar product. Ask for defect rates over the last twelve months. Ask how complaints are logged and how long it takes to close one.
Look for a clear process when something goes wrong. A sound plant finds the cause, fixes it and records the fix. A weak one repeats the same defect and blames the shipper. Ask for two examples of a past problem and how it was solved.
Agree on sampling and test methods before production starts. Write down what counts as a pass and what counts as a fail. Vague terms such as "good quality" cause most disputes.
4. Intellectual property: put it in writing
Your designs, drawings, moulds and tooling are valuable. Do not assume they are safe. Your contract should say who owns them, where they are kept and what happens to them when the deal ends.
Key points to cover are simple. Name your company as the owner of designs and tooling. Ban the use of your designs for other customers. Require the factory to return or destroy files and moulds on request. Limit who inside the plant may see your data. Check that the contract is enforceable in the country where the factory sits, and ask a local lawyer to review it if the order is large.
Also ask whether the factory will register your trademark or design rights in its own name. It should not.
5. Audit rights: keep the door open
Your contract should let you, or an agent you choose, inspect the plant. Set out how much notice is needed, and allow some visits at short notice. Include the right to check records, test stock and the sites of key subcontractors.
Audits follow a method. ISO 19011, the guidance on auditing management systems, describes how audits are planned and carried out. You do not have to follow it to the letter, but its steps are a handy model. Set the scope, collect evidence, note what you see and agree on actions with dates.
A factory that resists any audit right is telling you something. Take it seriously.
Sources: ISO 19011:2018 listing, Standards New Zealand (standards.govt.nz/shop/iso-190112018); general sourcing practice.
A short list to carry on the visit
- Certificate names the right entity, site and scope, and is in date.
- Capacity figures match what you saw on the floor.
- Inspection and complaint records are on file and recent.
- Contract names you as owner of designs and tooling.
- Audit rights, including subcontractors, are written in.
Score each point as met, partly met or not met. Do not sign until the gaps are closed or priced in.
Sources
- Standards New Zealand, ISO 9001:2015 listing: https://codehub.building.govt.nz/resources/iso-90012015
- International Accreditation Forum news item: https://iaf.nu/?p=1080
- Standards New Zealand, ISO 19011:2018 guidelines for auditing management systems: https://www.standards.govt.nz/shop/iso-190112018