Stop getting played by manufacturers đ©(here's how)
Contract manufacturing is chaos... here's how you calm the chaos.
I chatted with SâNOODS founder Lauryn Bodden last week and she said something about how easy it is for first-time or early stage founders to get âlost in the sauceâ when it comes to contract manufacturing and MOQs⊠and her story really got my wheels turning.
(So much so that my ânotesâ turned into this unofficial guide to making sense of the madness of contract manufacturing.)
When ecommerce brands start scalingâespecially fast-growing DTC brandsâthey often hit a messy middle: demand is up, internal capacity is maxed out, and itâs time to bring in the big guns.
Enter: contract manufacturing (CM).
But this is where things get diceyâbecause this process? Itâs chaos. đ©
That âsauceâ that Lauryn mentioned getting lost in? I think I can break it down to the ingredients. So hereâs my take on all the places founders usually get stuckâand how to navigate it so that you can go back to focusing on the other kinds of sauce (special sauce!) that your business needs to win and dazzle your customers.
Too Many Options, Zero Filters
You Google âco-packer for [insert category]â and get buried in a list of 200 names, half of which look like they havenât updated their websites since 2008. Without centralized data or a matchmaking framework, brands waste weeks just trying to sort signal from noise.
No Visibility Into Capacity, MOQs, or Lead Times
Most manufacturers donât publicly list:
Their minimums
Current line availability
Ingredient sourcing models
Fill formats or certifications
So youâre making decisions based on vague PDFs and slow email chains. You canât compare apples to apples⊠because you canât even find the apples. đ«
Cost Transparency Is a Black Box
Pricing is elusive. Brands are either over-quoted because they seem âgreen,â or underquoted just to get them in the door.
Without visibility into line efficiency, setup costs, freight implications, and yields, margins get annihilated before the first unit ships.
Even if you find someone who can make your product, that doesnât mean they should. A manufacturer used to 50k-unit runs is not the right person to babysit your 5k test batch!
Misaligned incentives lead to:
Missed deadlines
Inconsistent QC
Cost creep
Burned relationships
Overindexing on Certifications
Yes, being USDA Organic and SQF-certified matters, but itâs not the whole story. Some brands get dazzled by credentials and overlook more practical factors:
Line changeover flexibility
Forecasting communication
Ingredient substitution protocols
Devastatingly, fancy badges donât fix bad workflows!
Okay, So How Do I Hire The Best Fit??
The right CM is big enough to teach you things, but not so big that youâre just another line item.
When youâre looking to scale beyond your kitchen, you have to be careful not to get dazzled by the optionsâyou want someone scrappy who will work with you.
I feel like the right-sized manufacturing partner for an early-scaling CPG brand has some of the right âbullet points on their resume,â but then has these other really important startuppy things.
They understand startup scrappiness
Can handle smaller MOQs but are built for scale
Offer flexible scheduling or short runs for testing
Are willing to iterate with you
Are super super* communicative
*DO NOT IGNORE BAD COMMUNICATION FROM A PARTNER, IT WILL NOT GET BETTER. (Itâs possible I learned this from experience.)
This is almost like finding the right employees at a startup, too. Like if you look at that list above, itâs exactly the same as someone youâd want working full-time with you in the trenches.
You should probably wish that your CM could actually be a full-time employee of your business! You want to like them and respect them that much.
Thereâs another piece, which is trade secrets and ways of working.
If you are interviewing a CM and they tell you all their special secrets, and then you go take that to another CM instead, that sucks for them. So there is often a healthy skepticism at the beginning.
But this goes both ways - you donât want to tell a CM this rad idea you have figured out and then have them just give it to your biggest competitor.
Lastly, you should definitely not think they they are dumb, and you should not feel like you are taking advantage of them or getting such a good deal on something because they donât notice how good your pricing (that they gave you, lol!) is. đ©đ©đ©
So what do you think? Is it just me or is this where you, too, are right now or have gotten stuck in days past? Did I miss the mark or did you groan when you remembered that one CM that you have PTSD from? If you tell me your headaches, Iâll tell you mine!



