B2B Sourcing & Manufacturing Glossary

[GLOS] // Reference

34 terms every private-label operator needs to know.

The B2B vocabulary of sourcing is built to confuse first-time founders. MOQs, GMPs, NSFs, FDA registrations — every term has a real meaning, a real number behind it, and a real cost when you get it wrong. This glossary is the working definition file we hand to every operator we brief.

34 terms defined 5 categories Verified 2026-05-10 FDA / eCFR / NSF / ISO / USDA sourced

[A-Z] // All terms

The complete alphabetical reference.

L	Term	Quick definition	Read
A	AAFCO (Association of American Feed Control Officials) Certifications	AAFCO is the standard-setting body for pet food and animal feed in the U.S. Sets ingredient definitions, labeling rules, and nutritional adequacy criteria — adopted into law by most states.	Read →
B	Batch Testing Process	Batch testing is per-lot release testing that confirms each production run meets specification before it ships. Without batch testing, you have no recall traceability.	Read →
C	cGMP (Current Good Manufacturing Practices) Certifications	cGMP (current Good Manufacturing Practices) is the FDA's modernized version of GMP — same framework, but the 'current' part requires manufacturers to update methods and equipment as technology advances.	Read →
	Co-Manufacturing / Co-Packing Sourcing Models	Co-manufacturing (co-man) is contract production of finished goods. Co-packing (co-packer) is contract packaging of bulk product into retail format. Both are dominant terms in food and beverage CPG.	Read →
	COA (Certificate of Analysis) Process	A Certificate of Analysis (COA) is a per-batch quality document that certifies a finished product or raw material meets its written specifications.	Read →
	COGS (Cost of Goods Sold) Volume & Cost	COGS (Cost of Goods Sold) is the per-unit production and acquisition cost of inventory. Manufacturing + packaging + inbound freight + duties. Nothing else.	Read →
	Contract Manufacturing Sourcing Models	Contract manufacturing is dedicated production at a third-party facility, built to your custom spec. Your formula, your IP, their line.	Read →
	Custom Mold Tooling Packaging	Custom mold tooling is the dedicated equipment built to produce a unique packaging component. High upfront cost, high lead time, full proprietary design control.	Read →
D	Drop Shipping (vs Private Label) Sourcing Models	Drop shipping is a fulfillment arrangement where the supplier ships directly to your customer. It is an operations model, not a branding model — you can drop-ship generic or private-label goods.	Read →
	DSHEA (Dietary Supplement Health and Education Act) Certifications	DSHEA is the 1994 federal law that defines dietary supplements as a food category in the U.S. Establishes labeling, claims, and ingredient rules — and the difference between supplements and drugs.	Read →
E	EAU (Estimated Annual Usage) Volume & Cost	EAU (Estimated Annual Usage) is your honest twelve-month volume forecast for a SKU, given to the manufacturer for pricing-tier setup.	Read →
F	FDA Registration vs FDA Approval Certifications	FDA registration is a public listing of facilities. FDA approval is a regulatory clearance of a specific product. A 'FDA-registered facility' does not mean a 'FDA-approved product' — the two are entirely different.	Read →
	Formulation Process	Formulation is the process of converting a product concept into a stable, scalable, manufacturable specification. The deliverable is a master formula document.	Read →
G	GMP (Good Manufacturing Practices) Certifications	GMP (Good Manufacturing Practices) is the baseline regulatory framework for how a manufacturer must operate to produce safe, consistent products. Required by FDA for supplements, drugs, and many food categories.	Read →
	Gross Margin Volume & Cost	Gross margin is (Revenue - COGS) / Revenue, expressed as a percentage. It measures how much each dollar of sales contributes after direct production cost.	Read →
I	ISO 22716 (Cosmetics GMP) Certifications	ISO 22716 is the global GMP standard for cosmetics manufacturing. EU-required, U.S.-recommended, and increasingly enforced under MoCRA.	Read →
K	Kosher / Halal Certifications	Kosher and Halal are independent religious certifications administered by accredited agencies that audit ingredients, equipment, and production for compliance with Jewish (kashrut) or Islamic (halal) dietary law.	Read →
L	Landed Cost Volume & Cost	Landed cost is the all-in per-unit cost of getting inventory from the factory dock to your warehouse: factory price + freight + duties + brokerage + insurance.	Read →
	Lead Time Process	Lead time is the elapsed time from purchase order signed to finished goods delivered to your warehouse. Includes raw materials, production, QC, packaging, and shipping.	Read →
M	MoCRA (Modernization of Cosmetics Regulation Act) Certifications	MoCRA is the 2022 federal law that modernized U.S. cosmetics regulation. New requirements: facility registration, product listing, safety substantiation, adverse event reporting, GMP.	Read →
	MOQ (Minimum Order Quantity) Volume & Cost	MOQ (Minimum Order Quantity) is the smallest production run a factory will accept for a given SKU. It is set by the factory's cost recovery math, not by your marketing math.	Read →
N	NSF Certification Certifications	NSF certification is third-party verification that a product or facility meets specific safety, quality, or content standards. Different NSF certifications cover different things — pick the one that fits your claim.	Read →
O	ODM (Original Design Manufacturer) Sourcing Models	An ODM (Original Design Manufacturer) develops the product design and formula in-house, then licenses it to multiple brands who sell it under their own labels.	Read →
	OEM (Original Equipment Manufacturer) Sourcing Models	An OEM (Original Equipment Manufacturer) is a factory that builds products to your spec, under your brand. You bring the design or formula; they bring the production line.	Read →
P	Primary Packaging Packaging	Primary packaging is the container that directly holds and protects the product. Drives shelf life, perceived quality, and unit cost.	Read →
	Private Label Sourcing Models	Private label manufacturing is when a contract factory produces a product packaged exclusively under your brand. You own the brand; the factory owns the formula and the production line.	Read →
S	Sample Run / Pilot Run Process	A sample run is a marketing-quality small batch (50-500 units). A pilot run is a production-process validation batch (5-10% of full run scale). They serve different purposes — do both for custom SKUs.	Read →
	Secondary Packaging Packaging	Secondary packaging is the outer carton, sleeve, label, or insert wrapping the primary container. The main canvas for branding and the primary retail-shelf surface.	Read →
	Stability Testing Process	Stability testing is the structured evaluation of how a product's quality changes over time under defined storage conditions. Establishes shelf life and validates packaging.	Read →
	Stock Packaging Packaging	Stock packaging is off-the-shelf bottles, jars, and cartons held in inventory by the manufacturer. No tooling cost, fast lead time, predictable unit cost.	Read →
T	Third-Party Testing Process	Third-party testing is independent lab verification of label claims and product safety, performed by an organization with no financial interest in the result.	Read →
	Tooling Costs Volume & Cost	Tooling costs are one-time charges for the custom production equipment (molds, dies, plates) needed to make a unique packaging or product format.	Read →
U	USDA Organic Certifications	USDA Organic is a federal certification with four labeling tiers based on the percentage of organic ingredients. Only certified facilities producing certified products can use the USDA Organic seal.	Read →
W	White Label Sourcing Models	White label is a pre-made stock product that a manufacturer sells to multiple retailers under each retailer's own brand. Same formula, same packaging spec, different logos.	Read →

[CAT] // By category

Group the terms by where they sit in the sourcing stack.

CAT 01 7 terms

Sourcing Models

CAT 02 6 terms

Volume & Cost

CAT 03 10 terms

Certifications

CAT 04 7 terms

Process

CAT 05 4 terms

Packaging

[USE] // How to use this glossary

Three working modes.

[01] Vet a quote

Reading a manufacturer's quote?

When a factory hands you a quote with MOQ, EAU, COGS, lead time, and tooling lines, this glossary is the lookup. Every term they use, you can verify.

[02] Verify a label claim

Writing copy that ships?

FDA registration vs approval, NSF tiers, structure/function vs disease claims, organic labeling rules — the line between marketing and a Warning Letter is in this glossary.

[03] Brief us

Ready to source?

When you can speak the language — MOQ, EAU, primary packaging, COA, GMP — we move faster, the factory respects you more, and your unit economics survive contact with reality.

// Next step

Brief us against a real SKU.

Six fields. We come back inside 36 hours with three sourcing routes — MOQ, lead time, indicative cost on each. You speak the glossary; the factory speaks the glossary; nobody has to translate.

Start the brief →