How to OEM: The Process

OEM manufacturing while a cost-effective option for SMEs looking to bring a new product to market, it is a multi-layered process that has many things to consider. Let’s look at what we need to prepare before the first meeting with an OEM manufacturer as well as what to expect once things are underway.

1. Idea

First you need to have an idea of what you want to sell. Is it just one product or a range. What are your ideals? Do you have an existing benchmark or sample from the marketplace?

These are just some questions to consider before your first meeting with an OEM manufacturer.

2. Packaging & Target Audience

First, who is your target audience? Is it the middle-class but cost-conscious mummy or a more premium cosmetic market? This will also decide what direction your packaging will take and what look it will have.

3. Product Registration/Classification

In Malaysia, new products are registered under a few categories. These are cosmetic, food or supplement. For example if you wish to selling a skin care range, these products would need to go through the National Pharmaceutical Regulatory Agency (NPRA) to be approved with an NOT number. If you wish to sell a food product, it would also need to undergo classification as food or supplement if it has higher claims.

4. Delivery Date

Now to decide your launch date. This is essential when planning, especially if you have big ideas on how to market your product. You must however factor in how long it might take for your packaging design to be confirmed and printed, how long registration/classification might take as well as the OEM manufacturing facility lead time. For Furley Bioextracts, from receipt of deposit and final packaging, 6 to 8 weeks.