{"id":7590,"date":"2025-08-28T04:08:44","date_gmt":"2025-08-28T04:08:44","guid":{"rendered":"https:\/\/sblog.seebiz.com\/blog\/?p=7590"},"modified":"2025-08-28T04:24:40","modified_gmt":"2025-08-28T04:24:40","slug":"how-to-outsource-manufacturing","status":"publish","type":"post","link":"https:\/\/sblog.seebiz.com\/blog\/how-to-outsource-manufacturing\/","title":{"rendered":"The Beginner\u2019s Guide on How to Outsource Manufacturing (2025)"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">John and Jessi are two best friends. Both decided to launch clothing brands on the same day. John took manufacturing in-house. Jessi hired a third-party manufacturer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Who do you think, in the next 6 months, will scale his business?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Well, it was Jessi. Why? Not because outsourcing is always cheaper, but because he did his research before stepping into the market. He priced everything, not just the unit cost. That included capital equipment, maintenance, training, labour, utilities, storage, and all the surprise overhead that comes with running a plant. With less cash locked in machines, Jessi invested in marketing, talent, and new product launches.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">John, on the other hand, tied up 80% of his budget in production and payroll (as an SMB), leaving little for sales and growth.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So what do we learn? Before you choose in-house or contract manufacturing, build a Total Cost of Ownership (TCO) model. In this guide, we\u2019ll show small and mid-sized brands how to outsource manufacturing the right way.<\/span><\/p>\n<h2><strong>What is outsourced manufacturing?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">In outsourced manufacturing or contract manufacturing, instead of manufacturing your products in-house by your employees, you hire a 3rd party to manufacture your products or subassemblies on your behalf (to make a finished product).\u00a0\u00a0<\/span><\/p>\n<h2><strong>Why do businesses outsource manufacturing?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Well, due to multiple reasons, businesses are actively outsourcing manufacturing. Some of the common ones include;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To reduce the labour cost<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To speed up the process<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To improve quality with the latest tech<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You lack in-house expertise<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You want to focus on your core business operations<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Most businesses choose to go with outsourcing when they want to reduce labour costs. To run a plant, they need employees with certain expertise, which could cost a business a lot or, if it\u2019s a small business, it could cost a fortune.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When starting out, most businesses lack the expertise they need to compete with businesses that have been operating for decades. In order to match even 50% of their speed, you need experts with the latest technology and skills, who can manufacture your products with greater efficiency and in much shorter lead times.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once the manufacturing part of the business settles down, businesses can focus on their core functions, whatever they are, except for manufacturing itself.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These are some of the reasons that push businesses to outsource manufacturing. Plus, if they lack finances, outsourcing will give them the opportunity to get products manufactured until they can afford to set up their own plant.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-7595 \" src=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/unnamed-1-1.webp\" alt=\"businesses outsource manufacturing\" width=\"410\" height=\"288\" srcset=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/unnamed-1-1.webp 330w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/unnamed-1-1-300x211.webp 300w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/unnamed-1-1-100x70.webp 100w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/blog.iqsdirectory.com\/outsource-manufacturing\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">Source<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">As we discussed above, mostly in-house setup costs a lot, especially when you lack the skillset and equipment needed. According to<\/span><a href=\"https:\/\/market.us\/report\/manufacturing-outsourcing-market\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\"> Infosys BPM<\/span><\/a><span style=\"font-weight: 400;\">, about 68% of US companies are outsourcing their business processes from Asia and Eastern Europe, with the major portion of these processes comprising manufacturing.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-7591 size-large\" src=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Manufacturing-Outsourcing-Market-Size-1024x592.webp\" alt=\"manufacturing outsourcing market\" width=\"668\" height=\"386\" srcset=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Manufacturing-Outsourcing-Market-Size-1024x592.webp 1024w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Manufacturing-Outsourcing-Market-Size-300x173.webp 300w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Manufacturing-Outsourcing-Market-Size-768x444.webp 768w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Manufacturing-Outsourcing-Market-Size-100x58.webp 100w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Manufacturing-Outsourcing-Market-Size-700x405.webp 700w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Manufacturing-Outsourcing-Market-Size.webp 1221w\" sizes=\"auto, (max-width: 668px) 100vw, 668px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/market.us\/report\/manufacturing-outsourcing-market\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><b>Source<\/b><\/a><\/p>\n<h2><strong>How to outsource manufacturing?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Now, as we know, why should one go with outsourcing. Let&#8217;s learn how one can do this in the first place.\u00a0<\/span><\/p>\n<h3><strong>1- Find the right platform<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Finding the right platform is not as difficult as finding the right manufacturer. You can check industry referrals, go to trade shows, research sourcing platforms, and public directories.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And if you are someone with no access to or can&#8217;t go to physical shows or dont have any referral, you can find verified manufacturers using the free resource: the Internet.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a lot of online sourcing platforms available on the internet where you can simply log in, browse, and find your perfect match, like <\/span><a href=\"https:\/\/www.seebiz.com\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Seebiz<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.seebiz.com\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Alibaba<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"http:\/\/thomset.net\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">Thomset.net<\/span><\/a><span style=\"font-weight: 400;\">, etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you want a guide on where you can find verified domestic or international manufacturers or suppliers. <\/span><a href=\"https:\/\/www.seebiz.com\/blog\/how-do-i-find-manufacturers\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Here you can find manufacturers to outsource.\u00a0<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">If you&#8217;re specifically looking to outsource clothing manufacturers. <\/span><a href=\"https:\/\/www.seebiz.com\/blog\/how-to-find-clothing-manufacturers\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Here\u2019s a complete guide.<\/span><\/a><\/p>\n<h3><strong>2- Choose the right model<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Choosing the right manufacturing model is as important as finding the right manufacturer. There are several models you can choose from based on your product and market.<\/span><\/p>\n<h4><b>A- OEM (Original equipment manufacturer):<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">In this model, you, as a business, provide the manufacturer with the design or tech pack of your product. You will have more control over product specifications, and you can get private labelling on your design.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<h4><b>B- ODM (Original design manufacturer):\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">When you dont have a design in mind, you go with ODM., where the design is originally made by the manufacturer, but you can privately label it. It&#8217;s a much faster approach as you can have several options to choose from.\u00a0\u00a0<\/span><\/p>\n<h4><b>C- JDM (Joint development manufacturer) or Co-design:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">JDM is a hybrid model that blends the OEM and ODM approach where needed. Means you can split the work between you (a business) and a manufacturer. In this method, if the manufacturer handles the design, assembly could be handled by the business itself, etc. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Among the three, you can choose the one that fits your risk tolerance and launch timeline.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-7593 \" src=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/contract-models.webp\" alt=\"outsourcing contract models\" width=\"689\" height=\"421\" srcset=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/contract-models.webp 1000w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/contract-models-300x183.webp 300w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/contract-models-768x469.webp 768w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/contract-models-100x61.webp 100w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/contract-models-700x428.webp 700w\" sizes=\"auto, (max-width: 689px) 100vw, 689px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.fabrizioguerrieri.com\/blog\/five-ways-outsource-hw\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">Source<\/span><\/a><\/p>\n<h3><strong>3- Do TCO (Total cost of ownership), not just price<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Model all-in landed cost: unit price, tooling\/NRE, yields\/scrap, freight, duties\/tariffs, testing\/certification, inventory carrying cost, engineering time, plus risk buffers for delays and returns.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-7594 \" src=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Capture_iceberg_2-1-300x182.webp\" alt=\"Total cost of ownership\" width=\"556\" height=\"337\" srcset=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Capture_iceberg_2-1-300x182.webp 300w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Capture_iceberg_2-1-768x465.webp 768w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Capture_iceberg_2-1-100x61.webp 100w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Capture_iceberg_2-1-700x424.webp 700w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Capture_iceberg_2-1.webp 1011w\" sizes=\"auto, (max-width: 556px) 100vw, 556px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.3stepit.com\/blog\/what-is-total-cost-of-ownership\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">Source<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Also include a nearshore and domestic scenario. Because if the manufacturing facility is too far from your storage or warehouse, it may increase the transportation costs and lead times. Also, there could be frequent policy or tariff shifts, natural disasters, and certain risks like unfortunate shutdowns or quarantines, etc, that could change the dynamics. That makes businesses look for manufacturers closer to them.<\/span><\/p>\n<h3><strong>4- Vet manufacturers\u00a0\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Like everything, finding the right manufacturing partner takes a lot of research. It\u2019s not like we can just go, find the cheapest one, and deal done. First, you have to make a tech pack (a document with all the specifications you want in your product). Secondly, vet the manufacturers based on the product you want to manufacture and the model you choose. After shortlisting, screen 5\u201310 vendors to get 2\u20133 solid quotes and vet them based on factors like lead times, MOQs, cost, and communication.<\/span><\/p>\n<h3><strong>5- Send the RFQ (Request for quotation)<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">That\u2019s an important step to vet your manufacturers properly, not just ask for the pricing. Send a detailed RFQ to your vetted manufacturers. This helps you find the best option by comparing pricing, lead times, and whether they have the specializations you are asking for.<\/span><\/p>\n<p><a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1RN-nGe3Xg-ij_ZcuqTIrXa35wEG7GfPr\/edit?usp=sharing&amp;ouid=100658908618265885306&amp;rtpof=true&amp;sd=true\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">Download the ready-to-use RFQ template here.<\/span><\/a><\/p>\n<h3><strong>6- Do a Pilot run\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Once you choose your manufacturer, don\u2019t go all in right away. Before mass production, do a pilot run or ask for samples. This way, you can verify whether they can make the product the way you want. Check for any defects, on-time delivery, functionality, quality, and everything you mentioned in your tech pack. Cross-check and request modifications if needed. Ask for multiple samples until you are satisfied with the results. Once all the boxes are checked, proceed with mass production.<\/span><\/p>\n<h3><strong>7- Logistics &amp; risk<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Last but not least, here comes the logistics, when you finally get your products. At this point, you need to choose Incoterms that match your risk appetite (e.g., many SMBs operating in the US start with FOB or DAP).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, add buffers around holidays and port congestion. For important SKUs, don\u2019t rely on a single manufacturer; instead, consider dual-sourcing to prevent shortages or sudden shutdowns due to unforeseen circumstances.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below, you can find commonly used\u00a0 incoterms for any transport (air, sea, road, rail)<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Term<\/b><\/td>\n<td><b>Who pays main freight?<\/b><\/td>\n<td><b>Who insures?<\/b><\/td>\n<td><b>Who clears export?<\/b><\/td>\n<td><b>Who clears import\/duties?<\/b><\/td>\n<td><b>Where risk transfers<\/b><\/td>\n<td><b>Unloading at destination<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>EXW<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><b>Buyer<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When goods are made available at seller\u2019s site (not loaded)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>FCA<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When goods are handed to buyer\u2019s carrier at named place<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>CPT<\/b><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When goods are handed to first carrier (origin)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>CIP<\/b><\/td>\n<td><b>Seller<\/b><\/td>\n<td><b>Seller<\/b><span style=\"font-weight: 400;\"> (cargo insurance included)<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When goods are handed to first carrier (origin)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>DAP<\/b><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Seller or Buyer (agree)<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><b>Buyer<\/b><\/td>\n<td><span style=\"font-weight: 400;\">When goods arrive at named place, ready for unloading<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>DPU<\/b><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Seller or Buyer (agree)<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><b>Buyer<\/b><\/td>\n<td><span style=\"font-weight: 400;\">When goods are unloaded at named place<\/span><\/td>\n<td><b>Seller<\/b><span style=\"font-weight: 400;\"> unloads<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>DDP<\/b><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Seller or Buyer (agree)<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><b>Seller<\/b><span style=\"font-weight: 400;\"> (duties &amp; taxes)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When goods arrive at named place, ready for unloading<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Sea &amp; inland waterway only (container or breakbulk on vessels)<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Term<\/b><\/td>\n<td><b>Who pays ocean freight?<\/b><\/td>\n<td><b>Who insures?<\/b><\/td>\n<td><b>Who clears export?<\/b><\/td>\n<td><b>Who clears import\/duties?<\/b><\/td>\n<td><b>Where risk transfers<\/b><\/td>\n<td><b>Unloading at destination<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>FAS<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When goods are placed alongside the ship at origin port<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>FOB<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When goods are on board the vessel at origin<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>CFR<\/b><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When goods are on board at origin (seller still pays freight)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>CIF<\/b><\/td>\n<td><b>Seller<\/b><\/td>\n<td><b>Seller<\/b><span style=\"font-weight: 400;\"> (marine insurance included)<\/span><\/td>\n<td><b>Seller<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">When goods are on board at origin<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buyer<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7596\" src=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Incoterms-latest-updated-chart.webp\" alt=\"outsourcing in manufacturing industry\" width=\"1402\" height=\"1000\" srcset=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Incoterms-latest-updated-chart.webp 1402w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Incoterms-latest-updated-chart-300x214.webp 300w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Incoterms-latest-updated-chart-1024x730.webp 1024w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Incoterms-latest-updated-chart-768x548.webp 768w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Incoterms-latest-updated-chart-100x71.webp 100w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/08\/Incoterms-latest-updated-chart-631x450.webp 631w\" sizes=\"auto, (max-width: 1402px) 100vw, 1402px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/incodocs.com\/blog\/incoterms-2020-explained-the-complete-guide\/#google_vignette\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">Source\u00a0<\/span><\/a><\/p>\n<h2><strong>How Seebiz can help you with outsourced manufacturing<\/strong><\/h2>\n<p><a href=\"https:\/\/www.seebiz.com\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">SeeBiz <\/span><\/a><span style=\"font-weight: 400;\">makes outsourced manufacturing easier by keeping your stock, orders, and suppliers in sync. With multi-warehouse tracking (including items in transit), low-stock alerts, and detailed inventory reports, you always know what to make next and where to send it, so you don\u2019t overbuy or miss a build.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can raise POs and invoices fast (in minutes, not hours), which speeds handoffs between your team and the contract manufacturer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Reorder points are built in, so you can tie purchases to lead times instead of guessing them, and analytics help you spot slow movers before cash gets stuck.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Teams also use it to catch \u201cleakage\u201d and keep last-sold pricing straight when volumes ramp, reducing mistakes across suppliers and SKUs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And because<\/span><a href=\"https:\/\/www.seebiz.com\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\"> SeeBiz<\/span><\/a><span style=\"font-weight: 400;\"> also runs a wholesale marketplace, you can discover or vet vendors in the same ecosystem you use to manage inventory.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Isn&#8217;t it the best deal? Let&#8217;s<\/span><a href=\"https:\/\/www.seebiz.com\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\"> find you a manufacturer <\/span><\/a><span style=\"font-weight: 400;\">and also keep your processes streamlined with our <\/span><a href=\"https:\/\/www.seebiz.com\/inventory\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">inventory management.\u00a0<\/span><\/a><\/p>\n<h2><strong>FAQs<\/strong><\/h2>\n<h4><b>What\u2019s a \u201cgood\u201d MOQ and payment term?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">There is no such thing as a \u201cgood\u201d MOQ. Based on your relationship with the seller, you can negotiate the MOQ. If you are just starting out, start with minimum quantities to prevent locking your cash in inventory.<\/span><\/h4>\n<h4><span style=\"font-weight: 400;\">Also, there are different payment terms that buyers and sellers use. The most commonly used term is 30\/70 for new suppliers, where the buyer pays 30% upfront and 70% once the delivery is ready or shipped.<\/span><\/h4>\n<h4><b>Do I need to visit the factory when outsourcing manufacturing?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Yes, if possible, go check it yourself, or hire a 3rd party auditor to inspect the factory on your behalf. This way, you can check the capacity, product quality, and whether employees are working in fair conditions.<\/span><\/h4>\n<h4><b>What are the best places to source suppliers?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">You can use online sourcing platforms like Seebiz, Thomasnet, or check industry referrals. You can also use social media platforms like LinkedIn or Instagram to find trusted suppliers and verify them with the community.<\/span><\/h4>\n<h4><b>How to make an RFQ to send on Alibaba?<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">You can start with samples, document the specifications of your product, mention MOQs, and discuss payment terms. Also, ask for their criteria for free samples, and don\u2019t forget to discuss lead times.<\/span><\/h4>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What\u2019s a \u201cgood\u201d MOQ and payment term?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"There is no such thing as a \u201cgood\u201d MOQ. Based on your relationship with the seller, you can negotiate the MOQ. 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