Global manufacturing sounds simple. A brand has an idea. A factory makes it. The product gets sold. In real life, it is rarely that smooth.
Even though technology has improved, many brands and factories still misunderstand each other. These misunderstandings cause delays, bad products, and lost money. Some companies lose around 10% of their yearly profit just from these problems.
Different Types of Factories (And Why It Matters)
Many brands mix up different factory types. That causes trouble from the start.
OEM (Original Equipment Manufacturer)
The brand owns the design. The factory builds it. If the design has problems, the brand must fix it. Trouble starts when the brand expects the factory to redesign the product for free.
ODM (Original Design Manufacturer)
The factory designs the product. The brand adds small changes like color or logo. Because the factory owns the design, it can sell similar products to other brands. The brand may then compete mostly through marketing.
Contract Manufacturing (CM)
The brand owns everything. The factory mainly provides workers and equipment to produce it. Each model has different costs, order sizes, and time frames. If a brand confuses these models, expectations become unrealistic.
The Prototype Trap
A prototype is a test product. It shows that something can work. But there is a big difference between "it works once" and "it works 10,000 times."
Prototypes are often handmade or 3D printed. Mass production uses large machines like injection molding machines. These machines behave differently. Materials shrink. Parts bend. Machines have limits.
There is a risky stage between prototype and full production. Many new products struggle at this stage.
Factories often need to adjust the design to make it easier to produce. This is called Design for Manufacturing (DFM). These changes help the product survive real production.
Tiny Differences Add Up
In mass production, nothing is perfectly identical. Every part has a small allowed difference. This is called tolerance. For example, a part may be 10 mm plus or minus 0.2 mm.
If several parts are slightly off in the same direction, the final product may not fit together correctly. This is tolerance stack-up.
Some brands ask for perfect measurements with no allowed difference. Machines cannot achieve that. When expectations ignore physical limits, production becomes slow and expensive.
The Tech Pack Problem
A tech pack is the instruction book for making a product. It should include:
Materials
Measurements
Assembly details
Tolerances
Version history
Many brands send simple drawings with short notes and expect the factory to understand everything.
If instructions are unclear, the factory will usually choose the fastest or cheapest method. The product may technically follow the instructions, but still disappoint the brand.
Clear details prevent arguments later.
Money Problems: MOQs and Hidden Costs
MOQ means Minimum Order Quantity. It is the smallest order a factory accepts.
Brands often try to lower MOQs. From the factory's view, MOQs help cover setup costs. Custom molds alone can cost between $5,000 and $50,000. Machines must be prepared. Workers must be scheduled.
If the order is too small, the factory may raise the price per unit.
There are also "landed costs." These are extra costs after the factory price:
Shipping
Import duties
Port fees
Insurance
Domestic delivery
These can add 30% to 50% to the original factory price. If a brand forgets to plan for this, profit can disappear quickly.
Time Is More Complicated Than It Looks
Brands often think lead time means how long the factory works on their product.
In reality, most of the time, products sit waiting in line.
Actual production may take only 5% to 10% of the total lead time. The rest is waiting for materials or machine time.
Seasonal holidays can also cause delays. During the Lunar New Year, many factories close for weeks. Production slows before and after the holiday. Brands that plan too late may face months with no inventory.
Quality Disagreements
Factories and brands often see quality differently.
Many factories use AQL (Acceptable Quality Limit). It is a method where inspectors check a sample instead of every single product.
For example, in a sample of 200 pieces, up to 10 major defects may still be accepted under common standards.
A brand may encounter a few defective items and mistakenly believe the entire shipment is flawed. The factory may say the shipment meets the agreed rules. Without a clear agreement in place before production, conflict is likely.
Internal Brand Problems
Sometimes the issue is inside the brand.
Marketing teams promise features. Engineers struggle to make them within budget. The factory receives mixed messages.
Legal details also matter. If a brand pays for a mold, they may assume they fully own it. Without a clear tooling ownership agreement, the factory may refuse to release it later.
Clear contracts protect both sides.
The Bigger Picture
Factories work under physical, financial, and time limits. Brands also face pressure from markets and customers.
When brands treat factories as long-term partners and understand how mass production works, problems decrease.
Clear designs. Realistic measurements. Detailed tech packs. Honest cost planning. Early scheduling.
Manufacturing is a system. When both sides understand the rules of physics, statistics, and money, the system runs much more smoothly.
