Which one should an indie beauty brand use?
A factory owns the plant and the moulds, makes one process family, and is the cheapest source for one proven item at high volume, typically with a minimum of 5,000-10,000 pieces per item. A trading company buys and resells, adds a margin, and suits a one-off spot buy of a stock item where speed matters more than traceability. A packaging solutions provider does not own the plant either; the service is the product, and it suits a multi-component programme of five to twelve parts from three to five plants with quantities below factory minimums, colour to match across processes, formula compatibility to test and QC to run. For most indie brands on a first or second run that is the third type; for a brand ordering 100,000 units a year of one bottle it is the first. The dividing line that matters is not "factory or not"; it is whether the supplier discloses which it is.
This page is about the evaluation, not the sale. We publish it because we belong to the third category and are often asked to justify that, and because the same checks that reveal a weak coordinator also reveal a weak factory. The companion article on sourcing partner versus factory versus trading company covers the models; this page covers how to audit whichever one you choose.
Factory, trading company, solutions provider: compared without a villain.
None of the three is the wrong answer in itself. The mistake is choosing one without knowing which one you chose. Read the rows on MOQ and compatibility with care; they are where the types separate in practice, because a factory answers those questions from its own line's economics, a trader repeats what it was told, and a solutions provider should answer with a route and a test.
| Criterion | Factory | Trading company | Solutions provider |
|---|---|---|---|
| What they sell | The output of its own lines: one process family (injection, blow-moulding, tube extrusion, glass forming or paper converting) | Goods bought from factories and resold; the catalogue is whatever it can buy | A programme: specification, factory selection per component, sampling, tooling terms, inspection and consolidated shipment, with the components inside it |
| Owns the plant | Yes | No | No, and says so |
| How it answers "what is your MOQ?" | One number per item, typically 5,000-10,000, sometimes higher for tubes and airless; firm, because it is the line's own economics | Usually repeats the factory's number, sometimes rounds it down to win the enquiry and recovers it later in price or substitution | Per component, with the route stated: stock shape ~500, printed logo ~2,000, sprayed colour 2,000-5,000, plated closures ~10,000 whoever you ask |
| How it answers "is this material compatible with my formula?" | Correctly for its own resin or glass; rarely for the pump, the liner or the tube it does not make | "Yes" in most cases; a trader seldom runs a 48°C bulk test | Should answer with a test: your bulk at 48°C for 30 days, a compatibility report per component before tooling |
| Product range | Narrow; a jar plant does not extrude tubes and a glassworks does not mould pumps | Wide on paper | Wide by design: three to five plants coordinated for a six-item range |
| Documentation it can show | Its own business licence, ISO 22716 / GMP, its own test reports, mould register | Its own licence (registered as trading); factory certificates only if it chooses to disclose the plant | Its own licence plus the certificate of each plant per component, test reports, mould ownership agreement, inspection reports |
| Unit cost at volume | Lowest on its own product | Factory price plus margin | Factory price plus fee or margin; below the factory minimum, often lower total cost because tooling is avoided |
| Main risk | Says yes to formats it does not make and quietly sub-contracts; capacity claims with 0% spare machines | Opacity: a component fails and nobody can name the plant or produce a certificate in its name | A coordinator with no leverage over its plants; test by asking what happens commercially when a component fails inspection |
| When to use | One proven format, high and repeating volume, your own QC | A one-off spot buy of a stock item at mid volume, where speed matters more than traceability | A multi-component programme, first or second run, quantities below factory minimums, colour matching across processes, QC and consolidation needed |
Why the published minimum is not the whole story. The floor most named China suppliers publish is 5,000-10,000 pieces per item, and it attaches to the component geometry rather than the finished unit: a pump bottle is a bottle, a pump and an overcap, often from three plants with three minimums. A solutions provider's lower figures come from a mechanism, routing each component to a plant already tooled for small runs and substituting an existing mould with custom decoration for a newly cut one. Where no small-run route exists, nobody beats the factory: electroplated closures stay around 10,000 through anyone. The full comparison of what nine suppliers publish is on our MOQ comparison page, and the thresholds by route are on low MOQ cosmetic packaging.
Why the compatibility answer matters more than the price. Most packaging failures are decided when a formula is matched to a material: ethanol above ~30% means glass or copolyester, not PET; pH below 4 means glass or PP; vitamin C and retinol mean a 5-layer EVOH tube or airless. A factory can answer for its own resin. Only a supplier that sees the whole set, and runs your actual bulk at 48°C for 30 days, can answer for the pump seal, the tube liner and the jar together. The rules are on the formula and packaging compatibility matrix.
The ten-block factory audit, with a pass criterion for each block.
"Audited" means nothing until you know which audit and what it found. The ten blocks below are the quality audit structure used by third-party bodies such as SGS, Intertek, Bureau Veritas, TÜV and UL, and the same structure we apply to partner factories before they see a customer drawing. Use it on a visit, or send it as a pre-audit questionnaire and read how completely it comes back. The long-form version with check points, the four result grades and the 15-30 day CAPA clock is on the factory audit checklist.
| Block | What is checked | Pass criterion |
|---|---|---|
| A. Credentials & document control | Business licence, production permit, ISO 9001 / 14001 / 22716 (GMPC), BRC Packaging, SMETA where relevant; controlled-document list | Certificates in the plant's own name, in date, numbers verifiable; record retention ≥ shelf life + 1 year |
| B. Quality management system | Quality policy with measured objectives, SOPs for cleaning, inspection and mould handling, internal audit, change control | Any material, process, equipment or site change is evaluated, approved, validated and notified to the customer in writing |
| C. Design, development & moulds | New-product process, mould design and acceptance records, maintenance and storage, sample procedure | A mould register with life monitoring; forming steel ≥50 HRC; cooling circuit leak-free at 0.5 MPa; every mould change approved by the buyer |
| D. Supplier management | Approval of resin, glass, ink, adhesive and plating suppliers; COA and declaration of conformity for formula-contact materials | Incoming inspection records exist and match the COA; a supplier change triggers change control |
| E. Production process control | Cleanliness to GMPC, temperature and humidity control, calibration, critical parameters recorded, first-piece and patrol inspection, traceability | Batch traceable from raw material to carton; cleaning validated between colours and customers; status labelling and quarantine in use |
| F. Finished-goods QC & laboratory | Final inspection against the signed golden sample; calibrated callipers, spectrophotometer, torque and leak testers; third-party migration and heavy-metal reports | AQL applied to ISO 2859-1 general level II; retained samples kept for a defined period; test reports within validity |
| G. Non-conformance & CAPA | Identification, disposition (rework, scrap, concession), complaint handling, root-cause analysis | CAPA closed with verified effectiveness, not an apology; the 15-30 day CAPA clock met on previous audits |
| H. Warehousing & logistics | Temperature, damp, crush and contamination control; zones for pending, passed, rejected and returned stock; FIFO | Glass in suspended trays rated ≥200 kg to ISTA 3A; breakage on arrival ≤0.3%; export cartons to the published flute and board spec |
| I. Social responsibility & EHS | Working hours, wages, contracts, no child or forced labour, fire exits, machine guarding, chemical handling, waste permits | No zero-tolerance finding; SMETA or BSCI report available if your retailer requires it |
| J. Regulatory compliance | Destination-market packaging requirements (EU 1223/2009, US FDA, UK), full material disclosure for inks and plating, recycling marks | Can supply full material disclosure on request; staff training records for quality and safety |
Reading the result. A conditional pass is the most common outcome and is workable: orders are limited or inspection tightened until the CAPA closes, and the report is issued within 3-7 working days. A fail on falsified records or a non-functioning system is a fail regardless of price. If a supplier cannot host an audit at the plant that makes your part, that is a finding in itself, and it usually means you are talking to type two.
Twelve questions to ask any supplier, with the good answer and the red flag.
You do not need to be an engineer to run this. Send the twelve in one email and read the manner of the replies as carefully as the content. A supplier that answers all twelve plainly is one you can work with, whichever of the three types it is; a supplier that answers four and changes the subject on the rest has told you what you needed to know.
| Question | Good answer | Red-flag answer |
|---|---|---|
| 1. Which plant makes each component, by name and city? | Named per component without hesitation | "Our own plant" for every process, or a request to visit before answering |
| 2. Whose name is on the ISO 22716 / GMP certificate? | The plant that makes the goods; certificate number and expiry provided | The selling company's name only, or a certificate from a body you cannot verify |
| 3. What do you not make? | A short, specific list ("we do not run glass or plating") | "We can make anything" |
| 4. Is the minimum per component or per finished unit? | Per component, with the number for each of the bottle, pump and cap | One headline number that turns out to be per part later |
| 5. Is the mould existing or new, and if new, who owns it? | Existing where possible; if new, the brand owns it and the clause is in the contract | "We keep the mould" or silence on the question |
| 6. Have you run this material with a formula like mine? | A compatibility test offered: your bulk at 48°C for 30 days, report per component | "No problem" without a test |
| 7. Who inspects before shipment, and against what reference? | Inspection against the signed golden sample, with a written report, before the balance is paid | "We check quality" with no report format |
| 8. What AQL do you inspect to? | Critical 0, major 1.0-1.5, minor 2.5-4.0, sampled to ISO 2859-1 general level II | Does not know the term, or "100% inspection" with no records |
| 9. What happens commercially if a batch fails inspection? | A named remedy: rework, replacement or credit, and who pays freight | A description of the process rather than the remedy |
| 10. What is the realistic lead time, and does it cross Chinese New Year? | Component-level days (stock 7-25, spray 30-40, glass 30-60, tooling 45-60) plus a 1.3 buffer and the CNY gap (6 February 2027) | "20 days" for everything |
| 11. How many spare machines and spare moulds are on the floor? | A number you can count on the visit | A daily capacity figure with no spares |
| 12. Who is my single contact when two plants disagree? | One named person who owns the outcome | "Contact each factory directly" |
Questions 1 to 3 establish the type. Questions 4 to 6 establish whether the quote you will receive is the quote you will pay. Questions 7 to 9 establish whether quality is a system or an intention; the four gates and test thresholds we hold partner factories to are published on our QC standards page. Questions 10 to 12 establish whether your launch date will hold; the component-level day counts and the Chinese New Year rule are on the lead-time calendar.
Five documents before any deposit.
Brochures and factory videos are marketing. These five are evidence, and a well-run supplier of any type can send them within a working week. Ask for all five together; the pattern of what arrives, and in whose name, is more informative than any single document.
| Document | What to check | Why it matters |
|---|---|---|
| Business licence | Registered name matches the invoicing entity; scope says production (生产) or trading (贸易); registered capital and address | Tells you the supplier type in one line and whether the entity you pay is the entity you can hold to account |
| ISO 22716 / GMP of the factory | Issued to the plant that makes your part; certificate number, issuing body, expiry; cross-check with the plant address | A certificate in the seller's name proves nothing about the plant; one in the plant's name is the anchor for an audit |
| Third-party test reports | Migration, heavy metals, phthalates, REACH SVHC as relevant to material and market; report date within validity; sample description matches your part | Formula-contact compliance is a veto, not a score; a missing report ends the assessment regardless of price |
| Mould ownership clause | Brand owns the tool; custody and maintenance with the factory; no third-party use; transferable on written notice once the balance is settled | The document that lets you move production if a factory stops performing; without it the mould is a hostage |
| AQL inspection plan | Sampling to ISO 2859-1 general level II; critical 0, major 1.0-1.5, minor 2.5-4.0; defect classes defined per component; golden sample referenced | Makes acceptance arithmetic rather than argument, and gives the balance payment something to be released against |
On the mould clause specifically: new tooling for a cosmetic component typically runs RMB 25,000-70,000, a worked mid-size example comes to about RMB 76,500 (approx. USD 10,600), and the tool is rated for around 800,000 cycles. That is an asset. The agreement should also reserve capacity at 120% of forecast, trigger a price review when resin moves more than ±10%, and switch automatically to a qualified second source if the primary fails to supply for 5 days or more. The eight cost lines and the six clauses are on mould cost and ownership.
60/20/10 across suppliers, and the 3+1 rule before anyone moves up.
Larger buyers do not run one supplier per component; they run a primary at roughly 60-70% of volume, a secondary at 20-30% and a backup at about 10%. The 10% is not price leverage. It is the difference between a backup that has actually shipped to you and one that exists on a list. Every critical component keeps at least two qualified sources; that is the red line, and it is the reason the mould ownership clause above matters, since it is what lets a tool move.
| Role | Share of volume | Status | What it is for |
|---|---|---|---|
| Primary | ~60% (60-70%) | Fully validated, annual pricing, capacity reserved at 120% of forecast | Carries the launch and the repeat orders |
| Secondary | ~20% (20-30%) | Validated by 3+1, ships regularly | Live comparison on quality and delivery; absorbs peaks |
| Backup | ~10% | Validated, lightly used | Has actually shipped to you, so a switch is a reallocation, not a cold start |
The 3+1 switch rule. Any new or promoted supplier is validated by three small pilot batches from different production and raw-material lots, tested for dimensions, appearance, print, material and migration, function and compatibility with your formula, plus one full-scale production batch on the real line before volume moves. A circuit-breaker then watches the numbers: two consecutive batches below 95% pass rate is a warning with a root-cause report in 72 hours; a repeat cuts order share by 50%; a line stop activates the second source; one instance of falsified data is an exit. For an indie brand this is a lot of administration across five plants, which is the honest argument for having a solutions provider hold the second sources inside its network; the structure is described on how we work.
Payment terms: what is normal, and what the balance should be tied to.
Terms are a risk instrument, not a courtesy. The working principle is that the largest payment is released against a document you can read, an inspection report or an acceptance report, rather than against a calendar date. A supplier that resists tying the balance to inspection is telling you how confident it is in its own output.
| Purchase | Working norm | What the balance is tied to | Notes |
|---|---|---|---|
| Private mould | 30 / 40 / 30: 30% on signing, 40% after DFM and mould-flow review, 30% within a week of acceptance | Design review sign-off, then acceptance report | Deposit refunded if the tool fails acceptance; the alternative 50/50 is common on tools below about USD 5,000 |
| First production order | T/T 30% deposit, 70% balance before shipment | Pre-shipment inspection report | Some suppliers ask 50/50 on small first orders; keep the deposit at or below 30% where you can |
| Repeat orders | 30/70 T/T, moving toward monthly settlement over time | Inspection report, then delivery | Open account of 30-90 days exists in the industry but is earned over repeat orders |
| High-value custom glass | Balance settled after receipt and use, with an agreed breakage threshold | Arrival inspection; hidden-defect rates on glass can reach 12% | Suppliers usually want a 3-5% price concession for post-use settlement |
| Samples | Sample fee plus freight collect; fee deducted from the first order | Sample approval | A supplier that refuses to charge for samples is often not the plant |
Two cautions. A unit price about 20% below market that hides the mould fee lands about 32% above the market average once the tool is amortised; ask for the eight cost lines. And screening properly, meaning audit, samples and compatibility testing, costs on the order of RMB 100,000 (approx. USD 14,000), against RMB 5 million and up (approx. USD 700,000+) for one incident from an unvetted supplier. The ratio is roughly fifty to one, and it is the cheapest line on the project budget.
When not to use Vella.
If you have one proven component, no open compatibility question, your own inspector or a contracted third party, and a volume above roughly 100,000 units a year of that item, go direct to the factory that already makes it. You will pay less per unit than through us, and a coordinator adds nothing to a single-category, high-volume order. The same is true if you are making a one-off spot buy of a stock jar in a stock colour and a reputable trader can ship it next week. A solutions provider earns its fee on the programme, not the part: a serum, a cream and a cleanser in matched colour across a dropper, a jar and a tube from three plants, with a fragrance flacon and rigid box from two more, is where the six modules below pay for themselves. We would rather write that here than discover it after a quote.
Who we are. Vella is a Guangzhou-based beauty packaging solutions provider that helps indie and emerging cosmetic brands specify, source, sample, tool, quality-control and ship complete packaging systems — bottles, jars, tubes, pumps, closures and cartons — from vetted Chinese partner factories operating to ISO 22716 / GMP, with published engineering standards and low minimums. We do not own the plants and do not claim to; the certificate you ask for in question 2 will carry the plant's name, not ours, and that is the point. Our fragrance programme is described on the perfume bottle supplier page, the sourcing-agent structure on cosmetic packaging sourcing agent, and the category programmes on the packaging solutions hub.
How the six-module program applies to supplier evaluation.
Every check on this page maps to one of the six modules we run on a programme. The evaluation is not a one-time gate before the order; it is distributed across the modules, so that the documents, the tests and the inspection reports exist as deliverables you keep, whichever supplier ends up making each part.
| Module | What we do for supplier evaluation | Deliverable |
|---|---|---|
| 1 · Spec | Turn the brief into a Packaging Spec Sheet each candidate supplier must answer line by line: neck finish, material grade, formula-contact surfaces, decoration, tolerances, AQL | Packaging Spec Sheet |
| 2 · Source | Route each component to the belt and plant suited to it, request the five documents, and put two or three quotes per component side by side with the supplier type declared | Quote + Supplier Options |
| 3 · Sample | Sign a golden sample per component and run your actual bulk at 48°C for 30 days before any tooling or production commitment | Golden Sample + Compatibility Report |
| 4 · Mould | Where new tooling is needed, itemise the eight cost lines, set 30/40/30 payment and write the ownership and transfer clause before steel is cut | Mould Ownership Agreement |
| 5 · QC | Apply the four inspection gates with AQL to ISO 2859-1 general level II; the balance payment is released against the report, not a date | Inspection Report |
| 6 · Ship | Consolidate from three to five plants into one shipment against a dated calendar with the 1.3 buffer and export packing to the published standard | Production Calendar + Packing Standard |
Export packing is checked at module 6 against the published flute, board and glass-tray specification on export packing and transit standards. Filled goods and dangerous-goods shipping remain the brand's responsibility; we supply empty packaging only.
Frequently asked
Send us the quotes you have and we will tell you which type each one is.
Share the components, the quantities and the quotes or supplier names you are weighing. You get back the twelve questions pre-filled where we can answer them, the documents to request from each, and an honest note on whether a solutions provider is the right route for your volume.
Related reading.
- Factory audit checklist — the long-form ten sections, four result grades, CAPA clock and supplier tiers.
- Mould cost and ownership — the eight cost lines, 30/40/30 and the six contract clauses.
- Our QC standards, with the numbers — four inspection gates, AQL and the laboratory battery.
- Real minimum order quantities, by route — what each threshold is and what drives it.
- How we work — from brief to consolidated delivery, and where each check sits.
- Send a brief — components, quantities and target launch; reply within 24 hours.