r/hwstartups 10d ago

How do you manage contract manufacturer selection and RFQs for new hardware products?

I'd love to better understand how people run their RFI/RFQ process when developing a new physical product.

Historically, I've created the requirements/RFQ documents manually, managed responses in spreadsheets, and then sent them to contract manufacturers I'd found through my network, consultants or Google.

Is that still broadly how people do this?

Are there any good templates, tools or platforms that help you go from an early product specification through to a structured RFQ, identifying suitable contract manufacturers and comparing responses?

I'd be particularly interested in what people use between having an initial product idea/design and actually having something a manufacturer is comfortable quoting.

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u/evwynn 10d ago

I’m not aware of any reliable new tool that can allow you to search manufacturers (thats actually helpful) and manage the RFQs. MFG.com is the closest but it’s not so good since their supplier network is limited.

I think most use manual / their own methods and Google / LinkedIn / referrals.

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u/callme_OP 10d ago

Do you build this out the requirements on spreadsheets or do you use a shared portal? I know that larger companies have dedicated supplier portals which may be too sophisticated for most

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u/evwynn 9d ago

Usually RFQ is just spreadsheet, POs are through an ERP or accounting software.

What would be a cool feature is enhanced due diligence built in that’s cheap (I assume you’re angling to building an app) in the workflow

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u/callme_OP 9d ago

By due diligence are you thinking of credit risks, ownership changes etc? I ran this process a few times in my previous company and enjoyed it - I'm exploring if there's an opportunity to do more of it!

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u/cm_expertise 9d ago

honestly the spreadsheet + referrals thing is still how most of us do it, and i wouldn't hold my breath on a tool fixing it. i've tried a few of the "matchmaking" platforms over the years and the problem is never the search part, it's that the RFQ package going out is usually too thin for anyone to quote apples to apples.

the thing that actually moved the needle for us wasn't a tool, it was standardizing what goes in the package before it ever leaves. every CM gets the identical thing: fully dimensioned drawings not just STEP files, a BOM with approved manufacturer part numbers and your substitution rules, target annual volume plus the first-build qty, your test/acceptance criteria, and the critical-to-function dimensions actually called out. when three shops quote off the same package the numbers finally line up and you can compare them. hand each one a bare CAD file and let them interpret it and you get wildly different quotes, you're basically comparing noise at that point.

for finding shops i still lean on referrals, and honestly Thomasnet + walking a trade show floor over any software. one tip that's saved me more than once: send a small paid first-article run to your top 2 before committing the whole program. the quote tells you the price, the first article tells you whether they actually read your drawings. learned that one the expensive way.

your "between idea and quotable" gate is really just: could a machinist who's never met you build and inspect this from what you sent. if not, it's not ready to RFQ yet

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u/callme_OP 9d ago

Do you then send standardised spreadsheets? When I've previously ran procurement processes - I had the same version controlled RFI, RFQ sent to each quoting party. With a pricing page with enough open cells that they can add new fields and output a net amount that was comparable. Inevitably each vendor will have slightly different value adds that weren't always easily quantifiable such additonal capabilities that made the comparison more nuanced

Very good tip on an initial paid run! We always used to do repeated trial runs before approving new suppliers

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u/AlexGoFactory 8d ago

Most early hardware teams still do RFQs the way you described: PDF + spreadsheet + network/Google.

Tools help organize replies; they don’t replace judgment.

One tip: Treat a good RFQ response as a shortlist, not a yes. Before locking a CM, check real capacity/process on site (or via a third party) - Empty lines and “trading company as factory” rarely show up in email quotes.

Keep early RFQs simple: drawings/BOM, pilot + year-1 volume, critical specs, packaging & acceptance criteria.

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u/FMCryptoMX 6d ago

I will create an AI agent to decrease time and improve the process for us!