Switching supplement contract manufacturers can be a daunting task, but it doesn't have to be. Follow these steps to ensure a smooth transition and maintain product quality.

Step 1: Evaluate your current situation

• Define goals and expectations.
• Identify challenges faced with your current manufacturer to avoid repeating them. 
• Collect physical samples and documents from your existing manufacturer, especially if your product is in production.

Addressing these points in advance leads to clearer business vision, so that you can better communicate objectives to your new contract manufacturer.

Step 2: Research and shortlist potential contract manufacturers

• Thoroughly research and shortlist contract manufacturers based on experience, production capabilities, quality control, compliance, and reputation.
• Avoid companies with deceptive practices that promote irrelevant awards, unrealistic claims, and that use only stock images on their website. Other signs of untrustworthy manufacturers:
  • Those with an FDA logo on their site. It’s against the law, and every reputable manufacturer knows it. If an organization does this, you can only imagine what happens behind the scenes.
  • Websites that exclusively contain positive testimonials using generic names. 
  • Companies that have a pattern of one-star Google Business Reviews with detailed reports followed by a sudden surge of five-star reviews to overshadow the negative feedback.
  • Their certifications page doesn’t include certifications relevant to supplement manufacturing (NSF/GMP for manufacturing). 
  • They claim to be a jack of all trades. Most supplement manufacturers can produce capsules, tablets, and powders. However, liquids, softgels, and gummies are more complicated, and it would be difficult for a manufacturer to do them all well. 

Consider experience, capabilities, and reputation. Prioritize trustworthiness and expertise to establish a partnership that aligns with your needs.

Step 3: Request proposals and evaluate options

• Reach out to the shortlisted contract manufacturers and request detailed proposals. 
• Evaluate proposals based on pricing, production capacity, lead times, quality control, ingredient sourcing, regulatory compliance, and additional support.
• Avoid selecting a manufacturer solely based on price. Prioritize quality and safety. 

Cutting corners could have disastrous effects for brand owners.

Step 4: Conduct site visits and due diligence

• Visit facilities of top contenders.
• Observe processes, equipment, quality control labs, and storage facilities.
• Ask relevant questions about operations, certifications, supply chain management, and traceability.
• Check references and verify certifications.

This step is critical, especially if your product(s) was in production with another manufacturer. If it was a reorder and timing is crucial, get quotes from other manufacturers to explore options. In the event you need to start over, prior time-consuming due diligence will have already been completed.

Step 5: Determine if they can accommodate your needs

• Define your production needs, including the desired volume, frequency, and capacity.
• Consider the manufacturer’s scalability, machinery, facilities, and workforce.
• Communicate potential challenges and ensure the manufacturer can address them effectively. 

Confirm they can meet your current demands and can scale with your business over time. Consider their track record and experience handling similar production needs for other clients, especially those who transitioned from another manufacturer.

Step 6: Negotiate terms and sign the contract

• Ensure the contract outlines production requirements, quality standards, timelines, pricing, intellectual property rights, and additional services or support. 
• Seek legal advice if needed.

Give yourself plenty of time and ensure the specifications of your product are the primary talking point. A quick manufacturing lead time will mean nothing if the product fails to meet your specifications – or worse – falls short of your consumers’ expectations. 

Step 7: Develop a transition plan

• Include a timeline for product transfer (if applicable), inventory management, raw material sourcing, formulation adjustments (if necessary), and quality control protocols.
• Clearly communicate expectations and product specifications.

Reputable supplement manufacturers are transparent and honest about realistic expectations. A great partner will ask smart questions and work on problem-solving as hard as you do.

Step 8: Manage inventory and production transfer

• Establish protocols for transferring inventory, raw materials, production documents, quality control testing and product validation.
• Monitor closely to address any unforeseen issues promptly.

Ask about department procedures, investments, and certifications to ensure a reliable and empathetic partner, and compare their answers to other manufacturers. A trustworthy company sympathizes with your needs and values your partnership more than the sale.

Step 9: Ensure regulatory compliance

• Confirm the transition process adheres to all regulatory requirements.
• Verify your new manufacturer complies with all relevant regulations.
• Help them obtain necessary certifications or registrations. 

Make sure the manufacturer is doing the actual work. Many companies promote vast capabilities yet sub the business to the cheapest supplier. This can mean your product will be made in a facility that does not have necessary certifications. To verify you are dealing directly with the manufacturer, ask what specific certifications they have. Here are a few:

• NSF manufacturing certificate (not warehouse/packaging)
• Organic certification from QAI
• Health Canada site license/registration
• NSF for Sport certification (not warehouse/packaging)

Step 10: Continuously monitor and communicate

• Maintain open lines of communication with the new contract manufacturer during the transition. 
• Review performance regularly and address concerns promptly. 
• Monitor product quality, customer feedback, and market response to ensure a successful transition.

Wrapping Up

Transitioning to a new supplement contract manufacturer can be complex and stressful, but it doesn't have to be. Open communication, collaboration, and adherence to quality and regulatory standards are the key components of a smooth transition.