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The brand's initial production was in New York, not as a long-term solution, but to be close to the supply chain and intimately understand the manufacturing process. This hands-on education was a strategic step before they scaled production overseas.

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Instead of a wide launch, Dagne Dover began with 20 carefully selected Nordstrom doors. Proving sell-through in a limited scope gave them negotiating power to control the pace of expansion and secure better terms, avoiding pitfalls common for young brands.

The conventional wisdom for CPG startups was to be "asset-light" and use co-packers. However, owning the supply chain provides crucial control over quality, production schedules, and cash flow, preventing startups from being pushed aside by a co-packer's larger clients. This control is now a key diligence point.

McCain Foods de-risked international expansion with a three-step playbook. First, export product from an existing operation to test the market at low cost. Second, hire local salespeople to build volume. Only after proving the market would they commit capital to build or buy a local factory.

The founder realized that being in New York was expensive for sourcing ingredients from the Midwest and shipping nationally. He strategically moved his operations to Indianapolis, a central hub, to optimize both inbound and outbound logistics.

After a disastrous first run with a U.S. manufacturer, Wild Rye pivoted overseas. Counterintuitively, they found Chinese partners offered superior quality, sophisticated machinery, and a proactive partnership approach—even flagging potential issues pre-production. They were also more willing to work with a small brand's lower order quantities.

Initially deemed "insane" by investors, Skydio's decision to manufacture in the US was driven by the practical need for tight coupling between engineering and manufacturing for complex aerospace devices. This agile development approach later became a significant geopolitical and strategic advantage.

Wild Rye's founder attributes success with overseas manufacturing to treating it as a long-term partnership, not a transaction. This was validated when her factory partners flew from China to her tiny Idaho office to express their belief in the brand and commitment to helping it grow, solidifying them as a genuine extension of the team.

Companies, especially in early stages, should resist outsourcing production too quickly. Keeping a new process in-house is essential for understanding its pain points, which is a prerequisite for being able to specify clear, effective requirements to an external vendor later on.

Paranoid about quality control with their first Alibaba supplier, Unbound Merino's founders flew to the factory for the initial production run. This seemingly inefficient act of being physically present built a strong personal relationship that became their primary safeguard for quality.

Founders in CPG should personally master the hands-on production of their product before outsourcing. This deep knowledge of the process is invaluable, equipping you to ask specific technical questions and properly evaluate a co-manufacturer's capabilities, ensuring quality is maintained at scale.

Dagne Dover Used Local Manufacturing as a Learning Tool Before Scaling Abroad | RiffOn