Contract manufacturing and private label sourcing for UK businesses
Contract manufacturing sourcing finds a factory to make a product to your design or under your own brand. This service is for UK businesses launching or moving products to a new manufacturer. We find and qualify manufacturers, protect tooling and intellectual property, and compare options on landed cost before you sign.
Part of our product sourcing service.
Contract manufacturing, OEM, ODM and private label
- Contract manufacturing (OEM). The factory builds to your design and specification. You own the design.
- ODM manufacturer. The factory owns an existing design, which you adapt and brand. Faster and cheaper to launch, with less exclusivity.
- Private label manufacturers. Existing products sold under your brand, common in consumer goods, food, cosmetics and household products.
The right model depends on how much differentiation and IP control you need against speed and development cost. For fashion and textile brands, the guide to choosing clothing manufacturers in the UK, Portugal, Turkey and China compares the main options.
How to find suppliers and manufacturers
Our guide on how to find a manufacturer covers the full process. Marketplaces are a starting point, not a shortlist. We find suppliers using trade data, industry networks, trade fairs and referrals, then filter on capability, capacity, export experience and quality systems. The steps are the same whether you are looking at the UK, Europe or Asia:
- Write a specification with tolerances, materials, finishes and packaging
- Estimate annual volumes and the minimum order you can accept
- Build a long list of 10 to 20 candidates, then issue a structured RFQ
- Compare quotes on landed cost, not unit price
- Assess samples and audit the top two or three sites
- Negotiate price, MOQ, payment terms, tooling and IP
Tooling and IP
Tooling is often paid by the buyer but held at the factory. The contract should state that you own it, where it is stored, and how it transfers if you move supplier. For contract manufacturing, add confidentiality and non-use terms and register trade marks in the manufacturing country where relevant.
MOQs and cost
Minimum order quantities drive both unit price and stock risk. We negotiate MOQs against volume forecasts and phased commitments. See what MOQ means and how to negotiate it.
This service sits alongside offshore sourcing and supplier audits.
Frequently asked questions
What is the difference between OEM and ODM?
With OEM (contract manufacturing) the factory builds to your design. With ODM the factory supplies its own design, which you customise and brand. OEM gives more control and exclusivity; ODM is faster and cheaper to launch.
How do I find a private label manufacturer?
Decide the product specification and your minimum acceptable quality first, then search trade data, trade fairs and industry networks for factories already making similar products for export. Compare landed cost, MOQ and certifications, and test samples before committing.
Who owns the tooling?
Whoever the contract says. If you pay for tooling, make sure the agreement states that you own it and can move it to another supplier.
Related procurement topics
Specialist areas that complement this work.
About Caventis
Caventis (Caventis Ltd, registered in England & Wales, company number 17158263) is a UK procurement, supply chain and cost reduction consultancy. It works with global businesses to identify and deliver savings across procurement, operations and back-office spend, with every engagement shaped around what the client wants to achieve and results verified against the P&L.
The firm was founded by Matt Buckley, who leads every engagement personally, drawing on 16 years of procurement, supply chain and cost transformation experience at bp and General Motors. Matt holds an Executive MBA, two PG Diplomas in Senior Leadership and Finance, a Bachelor of Business in Supply Chain Management and MCIPS. Caventis is headquartered in the United Kingdom and serves clients internationally.
Related guides
- How to find a manufacturer: a UK buyer's guide
Write the specification, search well, tell factories from traders and compare on landed cost.
- MOQ meaning: minimum order quantity explained
What minimum order quantity means, how it affects cost and how to negotiate it.
- Manufacturing in India: importing to the UK
Strong sectors, trade rules and supplier checks for importing from India to the UK.
- Manufacturing in Turkey: nearshoring for UK businesses
Sectors, trade rules and when nearshoring to Turkey beats sourcing from Asia.
- Incoterms explained: a practical guide for UK buyers
All 11 Incoterms 2020 rules, where risk passes and which to use when importing.
Discuss your manufacturing requirements
Share the product brief. We will outline a shortlist approach and target cost.