{"id":6337,"date":"2018-06-07T14:40:43","date_gmt":"2018-06-07T06:40:43","guid":{"rendered":"https:\/\/furleybio.com\/blog\/?p=6337"},"modified":"2025-09-26T13:40:53","modified_gmt":"2025-09-26T05:40:53","slug":"should-i-setup-my-own-factory","status":"publish","type":"post","link":"https:\/\/furleybio.com\/blog\/should-i-setup-my-own-factory\/","title":{"rendered":"Should I setup my own Factory?"},"content":{"rendered":"[vc_row][vc_column][vc_column_text]\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_77 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d03068afa64\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d03068afa64\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/furleybio.com\/blog\/should-i-setup-my-own-factory\/#Manufacture_Ourselves_or_Outsource\" >Manufacture Ourselves or Outsource?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/furleybio.com\/blog\/should-i-setup-my-own-factory\/#What_do_I_mean_by_hidden_costs\" >What do I mean by hidden costs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/furleybio.com\/blog\/should-i-setup-my-own-factory\/#Quantity_Volume_of_Scale_Cost_Control\" >Quantity (Volume of Scale) &amp; Cost Control.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/furleybio.com\/blog\/should-i-setup-my-own-factory\/#But_still_consider_a_factory_Why_are_suggesting_a_paradox\" >But still consider a factory?!! Why are suggesting a paradox?<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Manufacture_Ourselves_or_Outsource\"><\/span>Manufacture Ourselves or Outsource?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We have been meeting with entrepreneurs with up and coming brands, with a lot of them deciding to move into a pathway of going into manufacturing. Unknown to them this pursuit unless strategic has a lot of hidden costs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_do_I_mean_by_hidden_costs\"><\/span>What do I mean by hidden costs?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Pursuing a factory involves heavy capital investment and requires management of staff. Hidden costs include certification, renovations to get the required certifications and a perpetual rehiring cycle of production level staff.<\/p>\n<p>Usually with most up and coming brands in Malaysia the quantity of sales is unable to sustain the factory continuously. So every hour the machines are not running they manufacturing division is losing revenue, naturally you will progress into OEM to sustain the operation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Quantity_Volume_of_Scale_Cost_Control\"><\/span>Quantity (Volume of Scale) &amp; Cost Control.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A major misconception is that by owning the factory we are able to drive costs lower, majority of the cases with exception of massive volumes which can continously sustain the factory are the exception.<\/p>\n<p>Most times manufacturing up-to 500,000+ units per order contract manufacturers are extremely competitive with factories at major quantities looking at 2 &#8211; 5% contract values as their margin.<\/p>\n<p>Lower quantities ranges from 20% &#8211; 50%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"But_still_consider_a_factory_Why_are_suggesting_a_paradox\"><\/span>But still consider a factory?!! Why are suggesting a paradox?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A small factory to experiment and create test market products should be considered running manual machines. This will help accelerate commercialization of concepts to market with minimum effort. Cost of goods are extremely high due to fix operation cost and low quantity of production, regardless on this junction the purpose of this is to see market acceptance.[\/vc_column_text][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text] Manufacture Ourselves or Outsource? We have been meeting with entrepreneurs with up and coming brands, with a lot of them deciding to move into&#8230;<\/p>\n","protected":false},"author":1,"featured_media":6343,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[273,1451],"class_list":["post-6337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-malaysia","tag-oem"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2018\/10\/old-manufactory-P6GQDP9.jpg?fit=1280%2C930&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5e8Qo-1Ed","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":9477,"url":"https:\/\/furleybio.com\/blog\/everything-guide-to-odms-and-oem-in-malaysia\/","url_meta":{"origin":6337,"position":0},"title":"Best 3 Tips Guide OEM in Malaysia and ODM","author":"Furley Bioextracts","date":"December 13,","format":false,"excerpt":"OEM in Malaysia Is it a Successful Model? Yes! Many businesses start with ODM or OEM products finding tremendous success in the products offered and have remained focused on their strengths of sales and marketing. All you need are good products, great marketing and a reliable OEM in Malaysia What\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/furleybio.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/oem-in-malaysia.jpg?fit=1200%2C801&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/oem-in-malaysia.jpg?fit=1200%2C801&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/oem-in-malaysia.jpg?fit=1200%2C801&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/oem-in-malaysia.jpg?fit=1200%2C801&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/oem-in-malaysia.jpg?fit=1200%2C801&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":8154,"url":"https:\/\/furleybio.com\/blog\/amazing-ingredients-for-baby-skin-care\/","url_meta":{"origin":6337,"position":1},"title":"Amazing Ingredients for Baby Skin Care","author":"Furley Bioextracts","date":"July 19,","format":false,"excerpt":"Did you know that the baby skin barrier is up to 30 percent thinner than an adult's? Not to mention that it loses moisture twice as fast. As such, it is more prone to dryness, irritation and more sensitive to temperature change. This can make it very uncomfortable for your\u2026","rel":"","context":"In &quot;OEM&quot;","block_context":{"text":"OEM","link":"https:\/\/furleybio.com\/blog\/category\/oem\/"},"img":{"alt_text":"Ingredients for Baby Skin Care","src":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/newborn-1399155_1280.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/newborn-1399155_1280.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/newborn-1399155_1280.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/newborn-1399155_1280.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/newborn-1399155_1280.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":9927,"url":"https:\/\/furleybio.com\/blog\/4-tips-choose-oem-factory\/","url_meta":{"origin":6337,"position":2},"title":"4 Important Tips to Choose OEM Factory in Malaysia","author":"Furley Bioextracts","date":"February 8,","format":false,"excerpt":"For those who want to start a business, the selection of a registered OEM factory in Malaysia is very important. This is to ensure the quality of the product is maintained. You should make sure that the factory you choose is suitable for the product you want to produce to\u2026","rel":"","context":"In &quot;FAQ&quot;","block_context":{"text":"FAQ","link":"https:\/\/furleybio.com\/blog\/category\/oem\/faq\/"},"img":{"alt_text":"4 Important Tips to Choose OEM Factory in Malaysia","src":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/private-label-supplement-manufacturers.jpg?fit=1200%2C801&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/private-label-supplement-manufacturers.jpg?fit=1200%2C801&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/private-label-supplement-manufacturers.jpg?fit=1200%2C801&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/private-label-supplement-manufacturers.jpg?fit=1200%2C801&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/12\/private-label-supplement-manufacturers.jpg?fit=1200%2C801&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":8632,"url":"https:\/\/furleybio.com\/blog\/gmp-and-halal-oem-factory-cosmetic-oem-products-oem-malaysia\/","url_meta":{"origin":6337,"position":3},"title":"GMP OEM Factory Cosmetic Halal, ISO. The Best OEM Product for OEM Malaysia Trends","author":"Furley Bioextracts","date":"November 13,","format":false,"excerpt":"Our OEM factory is all set up with high-quality oem product formulations that will make your brand stand out. We can either OEM Malaysia factories or manufacture these for you at our own facility or by outsourcing depending on what best suits each individual client's needs; but no matter how\u2026","rel":"","context":"In &quot;OEM&quot;","block_context":{"text":"OEM","link":"https:\/\/furleybio.com\/blog\/category\/oem\/"},"img":{"alt_text":"oem-factory","src":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/11\/6.jpg?fit=1080%2C1080&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/11\/6.jpg?fit=1080%2C1080&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/11\/6.jpg?fit=1080%2C1080&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/11\/6.jpg?fit=1080%2C1080&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/11\/6.jpg?fit=1080%2C1080&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":8178,"url":"https:\/\/furleybio.com\/blog\/fasting-12-benefits-and-what-you-need-to-know\/","url_meta":{"origin":6337,"position":4},"title":"Fasting &#8211; 12 Benefits and What You Need to Know","author":"Furley Bioextracts","date":"July 21,","format":false,"excerpt":"What do you think of when you think living well? Healthy lifestyle? Good nutrition? Enough exercise? These are the most common and are definitely true. However, our relationship with food is always something to be conscious of. First. What is fasting? Fasting is the conscious stopping or reduction of so\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/furleybio.com\/blog\/category\/news\/"},"img":{"alt_text":"Benefits of Fasting","src":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/20042021-Benefits-of-Fasting.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/20042021-Benefits-of-Fasting.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/20042021-Benefits-of-Fasting.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/20042021-Benefits-of-Fasting.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/07\/20042021-Benefits-of-Fasting.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":8037,"url":"https:\/\/furleybio.com\/blog\/hydration-serum-3-ingredients-for-better-skin\/","url_meta":{"origin":6337,"position":5},"title":"Hydration Serum: 3 Ingredients for Better Skin","author":"Furley Bioextracts","date":"January 29,","format":false,"excerpt":"There are many active ingredients that are popular for their hydration properties. Let's look at four actives below that can help you boost and maintain your skin's plumpness and hydration. 1. Hyaluronic acid (HA) Hyaluronic acid is one of the most well-known active ingredients for boosting hydration. What makes it\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/furleybio.com\/blog\/category\/news\/"},"img":{"alt_text":"oem cosmetic","src":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/01\/oemhydrationserum.jpg?fit=626%2C626&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/01\/oemhydrationserum.jpg?fit=626%2C626&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/d155kity4o7fyf.cloudfront.net\/2021\/01\/oemhydrationserum.jpg?fit=626%2C626&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_likes_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/posts\/6337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/comments?post=6337"}],"version-history":[{"count":1,"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/posts\/6337\/revisions"}],"predecessor-version":[{"id":29168,"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/posts\/6337\/revisions\/29168"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/media\/6343"}],"wp:attachment":[{"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/media?parent=6337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/categories?post=6337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/furleybio.com\/blog\/wp-json\/wp\/v2\/tags?post=6337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}