In this episode of Find Your Source, Stephen breaks down one of the most overlooked—and most operationally complex—parts of product fulfillment: kitting and bundling. Whether you’re assembling e-commerce sets, promotional packs, or sub-assemblies for manufacturing, the big question remains: Should you do it in-house or outsource it?

Drawing from decades of supply chain and manufacturing experience, Stephen walks through how to make that decision strategically—balancing control, cost, speed, and scalability. He also shares a comprehensive checklist used by top-performing companies to evaluate outsourcing partners and maintain operational excellence.

💡 What You’ll Learn:

• How to decide whether in-house or outsourced kitting makes sense for your operation

• What factors truly impact cost, quality, and lead time

• The 10-point checklist for outsourcing success:

  1. Define scope clearly — packaging specs, ownership, and process flow

  2. Vet your partner — capabilities, certifications, stability, and references

  3. Maintain data control — traceability, dashboards, and reconciliation

  4. Set quality standards — QA checklists, sample approval, and defect thresholds

  5. Communicate consistently — weekly cadence calls and escalation paths

  6. Structure contracts wisely — transparent pricing, SLAs, and exit terms

  7. Optimize logistics — co-location, cross-docking, and replenishment cadence

  8. Ensure compliance and security — NDAs, insurance, and business continuity

  9. Track and improve — KPIs, CAPA reviews, and quarterly performance meetings

  10. Plan for scale — modular setups, redundancy, and multi-site flexibility

Stephen emphasizes that successful outsourcing isn’t about giving up control—it’s about creating systems that maintain it, even when you’re not the one assembling every box.

📬 Ready to refine your operation? Visit the “Work With Me” tab at findyoursource.pro to connect with Stephen for help auditing your fulfillment process, selecting kitting partners, or setting up in-house workflows that scale.

Episode 010 tackles a key question for entrepreneurs and manufacturers alike: Is it time to use contract packagers or co-packers? Stephen Peterson breaks down the decision-making process, helping listeners understand when outsourcing makes sense and how to structure agreements for long-term success.

Key Insights:

• When to use them: Ideal for startups or new product launches where demand is uncertain and you don’t want to tie up cash in equipment or facilities. Co-packers can handle everything from specialized packaging to fulfillment, letting you focus on marketing and sales.

• Why to use them: They bring expertise, compliance (FDA, EPA, food safety, etc.), and efficiency. Their buying power and experience in packaging design often lower overall costs while ensuring quality.

• Cost models: Decide whether to use a cost-plus model (detailed bill of materials plus agreed margin) or a flat fee per unit/day. Cost-plus offers more transparency and opportunities to share in savings as volume grows.

• Bill of Materials (BOM): Always request a detailed BOM. This clarity helps you understand where costs are coming from and how you can strategically reduce them—whether through packaging choices, volume discounts, or labor efficiencies.

• Storage as a tool: Don’t overlook warehousing as a negotiation point. Free or extended storage terms can create meaningful savings without asking the co-packer to cut into their margins.

Stephen’s bottom line: Using co-packers strategically can accelerate growth, protect your cash, and give you flexibility—provided you go in with clear expectations, written agreements, and a focus on win-win outcomes.

📬 Questions or ready to take your next step? Visit the “Work With Me” tab at findyoursource.pro to connect with Stephen directly.

Episode 009 of Find Your Source focuses on the art of negotiating better prices through relationships, not pressure tactics. Stephen stresses that manufacturers have real costs—labor, raw materials, packaging, and infrastructure—and simply pushing for price cuts rarely works. Instead, the key is to:

• Build genuine relationships: Go beyond the contract table—talk about their goals, future plans, and challenges. A strong personal connection often opens the door to honest business discussions.

• Understand their business: Learn their processes, pain points, and legacy costs. By stepping into their shoes, you’ll see where costs are locked in and where efficiency gains are possible.

• Bring fresh ideas: Look for ways to enhance their business—introduce new packaging options, highlight automation opportunities, or share sourcing contacts that lower their costs.

• Create true win-win outcomes: When you help a manufacturer become more efficient or more profitable, you earn the right to share in the savings while securing long-term supply and stronger trust.

Stephen’s takeaway: Negotiating isn’t about squeezing margins—it’s about collaboration, creativity, and fairness. When you approach it this way, you’re not just getting a better price; you’re building partnerships that last.

📬 Questions or ready to take your next step? Visit the “Work With Me” tab at findyoursource.pro to connect with Stephen directly.

Episode 008 of Find Your Source dives into the critical early discussions that build strong manufacturer–customer partnerships. Stephen stresses that long-term success doesn’t start with price haggling—it begins with clear expectations and mutual respect.

Key takeaways include:

• Define responsibilities upfront: Don’t leave gray areas about packaging, labeling, kitting, or storage. Spell out what’s included in a “landed cost” and who handles freight, consumables, and labor.

• Focus on fairness and mutual wins: A deal that leaves one side squeezed is not sustainable. Manufacturers need margins, customers need reliability, and both should profit.

• Plan for scale and flexibility: Discuss how costs change with volume, and have backup production options (“Plan B”) to avoid disruptions.

• Get everything in writing: Use contracts, terms, and even memorandums of understanding to prevent surprises and protect both sides.

• Quality and consistency are non-negotiable: Establish standards, inspection processes, and tolerances that everyone can agree to.

Stephen’s message is simple but powerful: success comes when both sides win. By putting everything in writing and anticipating challenges before they arise, companies can build relationships that last, rather than one-time transactions that collapse under pressure.

📬 Need help applying these ideas? Visit the “Work With Me” tab at findyoursource.pro to connect with Stephen for consulting, process audits, and tailored growth strategies.

In this episode of Find Your Source, Stephen Peterson dives deep into Cost of Goods Sold (COGS) and how manufacturers can sharpen their financial edge by truly understanding and benchmarking their costs.

Stephen explains the three key components of COGS—direct materials, direct labor, and overhead—and stresses the importance of categorizing them correctly to avoid overstating profits or underestimating waste. From raw materials and freight to production labor, utilities, and factory overhead, he breaks down where costs can hide and how they should be tracked.

But knowing your numbers is only the beginning. Stephen emphasizes:

• Benchmark against industry best practices to uncover inefficiencies.

• Build strong, detailed budgets for COGS and track them against actuals.

• Focus on the low-hanging fruit first—big-ticket items and obvious waste—before chasing pennies.

• Continuously improve over time rather than expecting perfection right away.

• Involve stakeholders and your CPA to ensure accuracy, compliance, and long-term credibility.

He warns against cutting corners, noting that buyers in mergers and acquisitions will uncover missing costs and adjust valuations accordingly. Instead, businesses should aim to create a transparent, efficient, and scalable cost structure that not only drives profitability but also makes them more attractive to investors and buyers.

Stephen closes with encouragement: start where you are, improve piece by piece, don’t get discouraged, and remember that small consistent improvements compound into big results.

📬 Questions or ready to take your next step? Visit the “Work With Me” tab at findyoursource.pro to connect with Stephen directly.

Episode 006: Stephen Peterson shares how even “old school” businesses can harness AI—specifically tools like ChatGPT-5—to document processes, capture institutional knowledge, and dramatically improve efficiency. Using his step-by-step SOP creation method, Stephen shows how recording key roles, interviewing staff and management, and layering in AI-generated clarity can:

• Increase efficiency & cut costs by reducing unnecessary touchpoints.

• Protect against employee turnover by making every position replaceable through clear documentation.

• Boost business value for private equity or sale by showing scalable, transferable processes.

• Identify & fix bottlenecks in operations and supplier relationships.

• Engage employees by involving them in process improvements, leading to buy-in and even promotions.

Stephen explains why SOPs aren’t just “paperwork” but a business’s secret sauce—critical for attracting investors, ensuring continuity, and uncovering hidden growth opportunities. He also warns this is a time-intensive but high-return investment that can pay off in efficiency, margins, and sale price.

📬 Need help applying these ideas? Visit the “Work With Me” tab at findyoursource.pro to connect with Stephen for consulting, process audits, and tailored growth strategies.

🎙 Episode 5: Supplier Maintenance – The Secret to Scaling Smart

How do you justify taking time to talk with your suppliers when everyone’s already overwhelmed? In this episode, Stephen shares why making time for supplier relationships is exactly how you gain a competitive edge.

Too many companies only call their suppliers when there's a problem. But what if you could be the partner they look forward to working with? The kind of customer they prioritize, share ideas with, and invest in?

Drawing from real experiences scaling to 8 figures, Stephen shares proven techniques for building mutual trust with manufacturers—relationships that pay off tenfold over time. Whether you're negotiating better pricing, improving lead times, or co-developing new products, supplier maintenance isn't a chore—it's a strategy.

💡 What You’ll Learn:

• How to build long-term supplier relationships that give you leverage

• Why being a “great customer” unlocks better deals and better service

• Simple ways to add value to your suppliers (and why it pays off)

• How to navigate cost pressures, automation, and supplier consolidation

• Why showing up (literally) still matters—yes, even in a digital world

✅ BONUS: Stephen introduces his new "Work With Me" tab at findyoursource.pro. He’s now offering direct consulting—whether it's process audits, staff training, or live coaching at trade shows. If you or your team want to level up your sourcing game, this could be the opportunity to finally find your source.

🎙 Episode 4: Stay in Your Niche – The Smart Way to Grow Without Breaking What Works

In this episode of Find Your Source, Stephen dives into one of the most important (yet most ignored) growth strategies: staying in your lane.

When you're scaling a product line or maximizing your manufacturing capacity, it’s tempting to take on anything that comes your way. But saying “yes” to every opportunity can quickly lead to overextension, poor quality, and burned partnerships. Stephen explains why staying focused on your core niche—and finding compatible extensions—is the key to sustainable growth.

Using real-world examples (from windshield wiper blades to washer fluid to brake fluid), Stephen shows how knowing your niche helps you become a preferred customer to manufacturers—and how manufacturers can use their own excess capacity wisely.

💡 In This Episode:

• How to become the least painful customer your manufacturer has (and why that matters)

• Why manufacturers should avoid chasing every customer and stick to what they do best

• How businesses can expand wisely into adjacent niches that don’t derail operations

• What makes a customer valuable beyond order size

• Why "the riches are in the niches"—and how to identify yours

✅ PLUS: Stephen shares insights on how manufacturers can use downtime wisely, what buyers should ask before choosing a new production partner, and why diversification doesn't mean dilution.

📬 Want hands-on help? Check out the new “Work With Me” tab at findyoursource.pro. Whether you need a sourcing partner, a process audit, or someone to walk the trade show floor with your team and coach them on live vendor conversations—Stephen is here to help. And yes, he loves to talk.