Assessing your Manufacturing Risk

By the time most manufacturers request quotes from potential partners, they’ve already narrowed their list, often from dozens of candidates down to just a few. While this can streamline the selection process, it also introduces downstream risk. Many companies make critical decisions before involving a manufacturing partner, missing out on valuable expertise that could shape the project for the better.

At Vollrath Manufacturing Services (VMS), we’ve seen firsthand how early collaboration leads to smarter outcomes. When manufacturers wait until later stages to engage with an OEM, they often overlook key cost drivers, material considerations, and process efficiencies. The result? Missed opportunities, hidden costs, and avoidable setbacks.

Asking the Right Questions Early Saves Time and Money

It’s common for clients to approach manufacturers believing they’ve already covered their bases. But without a full understanding of manufacturing implications, early decisions—especially those driven by upfront cost—can lead to long-term inefficiencies. By involving an experienced OEM early, companies gain access to insights that go beyond price tags, helping them identify risks and optimize their approach.

“Because we’ve managed so many OEM projects, we can identify risks and potential setbacks that the customer either didn’t consider enough, or didn’t consider at all. Our sales team will walk the client back through those initial planning stages to ensure their evaluations include all variables and risk factors and are in line with their best interests.”
Bill Engler, Director of Sales, VMS

Key Questions to Ask Before You Dive In

1. What’s Our Total Cost of Ownership?

Offshoring may seem cost-effective at first glance, but hidden costs often tell a different story. According to The Reshoring Initiative®, companies frequently underestimate offshoring costs by 20–30%. Factors like transportation, inventory management, lead times, tariffs, and geopolitical instability can quickly erode savings.

The COVID-19 pandemic underscored the importance of supply chain resilience. Events that barely disrupt U.S. operations—like regional weather events—can be catastrophic elsewhere. Manufacturers must factor in inventory security and global volatility when calculating total cost of ownership.

2. Is This Manufacturer Truly the Right Fit?

Many companies use a process of elimination to select OEMs, but that doesn’t guarantee a good match. Sometimes, manufacturers are chosen simply because they weren’t disqualified, not because they’re the best fit.

“Most of our projects are highly engineered with high design criteria and tight tolerances. These are projects that typically stay domestic to begin with because they’re usually too complex to send overseas. If you’ve been offshoring your products and are trying to bring production back into the U.S., you need to be aware that certain manufacturers just won’t be the right fit.”
Bill Engler, Director of Sales, VMS

Engaging with OEMs earlier allows for a more accurate assessment of compatibility before assumptions lead to misalignment.

3. Should We Single-Source or Dual-Source?

Regardless of what it is, your sourcing strategy is a major source of risk to your organization. While dual-sourcing was once the norm for most organizations, many manufacturers shifted to single-sourcing over time, believing global risks had diminished in such a way to encourage single supply sources. Recent disruptions, however, have significantly changed that perception.

Between the global pandemic early in the decade, raw material shortages, clogged ports, and wildly fluctuating tariffs, the risk of single-sourcing products is infinitely greater than before. Whether companies return to dual-sourcing or not, the decision should be made with a full understanding of current market risks and long-term implications.

4. Are We Choosing the Right Materials and Processes?

By the time manufacturers reach out to an OEM, they’ve often already selected materials and processes. While this is understandable, making these choices without manufacturing input can lead to inefficiencies or added costs.

Material selection should be based on performance, lifecycle, and manufacturability, not just initial cost. Additionally, global material standards vary, and even small differences can impact product quality and consistency.

“Clients will come to us saying they want a cheaper part and quickly spec carbon steel based on the lower material starting price. Whereas if they start with stainless steel that provides rust inhibitor properties right out of the gate, they’ll end up saving money because they won’t need to add in all those secondary operations.”
Dan Blindauer, Regional Sales Manager, VMS

Early Engagement Reduces Risk and Builds Stronger Projects

At VMS, we refer to the early stages of the buyer’s journey as the “Learn & Confirm” phase. This is when manufacturers should be engaging with potential partners to validate assumptions, uncover risks, and align on strategy. Early collaboration leads to better decisions, fewer surprises, and stronger outcomes.

Why VMS?

VMS specializes in custom manufacturing, tooling, engineering consulting, and made-to-order parts. Our mission is to help bring your vision to life: reliably, consistently, and with long-term value. We’re selective about the projects we take on because we believe in building partnerships that benefit both sides. If you have a strong concept and a preliminary design, we’d love to talk.