Series production abroad: How to get started

For many companies, the first series production represents a decisive turning point, especially if it is to take place abroad. What sounds like a cost-optimised solution in theory quickly becomes a complex challenge in practice: high minimum order quantities, production costs that are difficult to calculate, and cultural and logistical uncertainties when dealing with new manufacturing partners.

Whether you are a start-up, SME or industrial company, anyone who outsources production batches internationally is faced with the question: How can initial production be realised efficiently, cost-effectively and in the right quantities?

In this article, we show you how to strategically approach the start of series production abroad.

What does series production abroad mean?

From idea to series: What counts as series production?

Series production begins when a product is manufactured in repeatable, standardised quantities. The aim is to ensure consistent quality as quantities increase.

In practice, a distinction is made between:

• Prototype production: Initial functional prototypes for product validation

• Small-batch production: Limited quantities for market launch or test phase

• Series production: Recurring, scalable manufacturing in medium to large production batches

The transition is fluid, especially for first-time productions abroad, where companies still need to gain experience. Here, it is crucial to correctly assess the production volume and logistical requirements.

Why series production abroad?

There are many reasons for manufacturing abroad, but they are often economically motivated. Typical goals:

• Reduction of production costs

• Access to specialised manufacturing processes

• Increase in production capacity without own infrastructure

• Proximity to markets in new sales regions

• Outsourcing of non-core processes in order to focus internal resources

Issues such as quality assurance, minimum quantities and cultural differences play a central role, especially in the first production batch. These factors are often underestimated, but have a major impact on costs, time and product quality.

Which products are suitable for series production abroad?

The following are particularly well suited for outsourcing series production:

• Mechanical and technical components (e.g. turned and milled parts, sheet metal parts, assemblies)

• Plastic parts and injection-moulded parts

• Electronic assemblies and cable assembly

• Packaging, POS systems and final assembly

These product groups benefit from a mature global manufacturing network that can be easily adapted to requirements and minimum order quantities.

Initial production: The crucial starting point

When it comes to initial production abroad, the details are particularly important: small planning errors can quickly affect delivery times, budgets and series production capability. Companies that take this step in a targeted manner and with professional support not only secure better purchase prices, but also avoid typical pitfalls.

Understanding and optimising minimum order quantities (MOQ)

Anyone who is outsourcing production abroad for the first time will sooner or later encounter a key figure: the minimum order quantity, also known internationally as MOQ. It is one of the most important parameters in series production and can determine whether a project gets off to a successful or frustrating start.

What does MOQ mean?

MOQ (minimum order quantity) describes the smallest quantity of a product that a manufacturer is willing to produce. It is specified in units and depends on:

• the type of product (e.g. complexity, material, processing effort)

• the manufacturing process (e.g. injection moulding vs. CNC machining)

• the tooling costs (e.g. mould construction, fixtures)

• and the manufacturer's internal cost structure

Companies should clarify the MOQ before requesting a quote and ensure that it fits their planned budget, inventory and sales plan. An early, realistic assessment protects against expensive misorders or delays in market launch.

Cost factors for initial production abroad

Those planning their first series production abroad usually do so for economic reasons. However, reality shows that low unit prices alone are not enough to make production abroad a success. Especially for initial production runs, it is crucial to keep an eye on the overall cost structure and identify potential cost traps at an early stage.

Fixed costs, variable costs and changeover costs

The total costs of production are made up of various components:

• Fixed costs

• Variable unit costs

• Changeover costs

A realistic cost comparison should therefore not only look at the price per unit, but also at the relationship to the desired production volume.

Hidden costs of overseas manufacturing

In addition to the obvious production costs, there are a number of indirect costs that are often underestimated:

• Transport and logistics

• Customs duties and import taxes

• Exchange rate risks

• Quality inspections and rework

• Communication and project management

Location selection – Where is it really worthwhile to start series production?

The decision to relocate series production abroad does not begin with the offer, but with the question: Which location suits our product, our requirements and our business model? The production location has a direct influence on delivery times, production costs, minimum order quantities and quality assurance.

Typical target countries for series production

In practice, three major regions stand out as particularly popular choices for outsourcing series production:

Eastern Europe: Countries such as Poland, Czechia, Romania and Hungary offer geographical proximity, well-trained skilled workers and comparatively low labour costs. For many German companies, Eastern Europe is the first choice when it comes to medium-sized production batches with short delivery times.

Asia (e.g. China, Vietnam, India): Asian countries, especially China, offer large production capacities, low unit prices and a high degree of specialisation in areas such as electronics, plastics and metal processing. The downside: long transport times, higher minimum order quantities and often more complex communication.

If you would like to learn more about the differences between “Made in China” and “Made in Germany”, we recommend our detailed blog article: Made in China vs. Made in Germany.

North Africa (e.g. Tunisia, Morocco): These countries are gaining in importance. Advantages include shorter delivery routes, tax incentives and low-cost labour. However, there are still differences in infrastructure and delivery reliability.

Criteria for choosing a location

The choice of the right production location depends on several factors:

• Product type and manufacturing technology: Complex or highly specialised products require experienced partners, often with industry-specific expertise.

• Production costs: In addition to wage levels, energy prices, material availability and tax conditions also play a role.

• MOQ and flexibility: Some countries or suppliers insist on high minimum order quantities. This can be a deal-breaker for initial production.

• Delivery times and logistics: If you are planning short time-to-market cycles, you should pay attention to geographical proximity and reliable transport chains.

• Communication and project management: Linguistic and cultural proximity facilitate coordination, change requests and quality management, especially in the early stages of a project

Location selection as part of the production strategy

When producing abroad for the first time, it makes sense to look beyond prices and capacities and embed the decision in the long-term corporate strategy. For example, if you plan to have several products manufactured abroad in the future, you should also consider the location from a scaling perspective. In this case, it may make sense to work with a partner such as Line Up, which has access to multiple manufacturing locations or enables modular expansion.

Tip: You can plan and manage your entry directly via our Line Up Supply Chain Dashboard.

Supplier selection & contract drafting

The success of series production abroad depends on finding the right manufacturing partner. It is not just a question of getting the best price, but above all of reliability, quality, communication and contractual clarity. Especially for the first production batch, it is worth planning and securing this step carefully.

A suitable supplier for series production abroad fulfils far more than just technical requirements.

Read more about this in our article: ‘How to find the right manufacturer for your product’.

From pilot series to series production

There is often a crucial step between successful product development and fully automated series production: the pilot series. It forms the bridge between theory and practice and determines whether a product is technically and organisationally ready for production in larger quantities.

Why a pilot or pre-production series is crucial

A pilot series, often referred to as a pre-production series, comprises a limited quantity of the final product manufactured under real production conditions. The aim is to validate the entire production chain:

• Check the function and quality of the components

• Test and document manufacturing processes

• Coordinate testing methods and adjust them if necessary

• Test packaging and logistics processes

Risks & opportunities of foreign production

Series production abroad offers attractive advantages if risks are identified early on and addressed in a targeted manner. Especially in the case of initial production, a well-founded assessment is crucial to success.

Opportunities: Foreign manufacturing partners often enable significantly lower production costs, access to specialised technologies and greater flexibility in resource planning. In addition, proximity to new markets can shorten delivery times and strengthen competitiveness.

Risks: Challenges arise primarily in quality assurance, communication and logistics. Language misunderstandings, differing standards or unforeseen delivery bottlenecks can lead to delays and additional costs. Currency and legal issues should also be clarified in advance.

Conclusion

The first series production abroad is not a routine project, but a strategic decision. Anyone who believes that a low unit price alone is enough risks high follow-up costs due to incorrect minimum quantities, unclear processes or unsuitable locations. The key lies in realistic planning, technical clarity and a structured approach: start small, check carefully and scale up in a targeted manner. Companies that take this path with experienced partners such as Line Up not only secure cost and competitive advantages, but also create a resilient basis for future growth.

Are you planning your first series production abroad?

We would be happy to support you with our experience, suitable partners and a structured full-service approach. Use our contact form to arrange a non-binding consultation appointment.