Purchasing Resources for Contract Manufacturing
Download Contract Manufacturing White Papers
Contract manufacturing is the production of one's products by another firm. It is a form of outsourcing, which may be found in the computer, defense, pharmaceutical, medical, automotive and food industries. A business in search of a contract manufacturer may request quotes from several providers. The business will select the most attractive quote, and the contract manufacturer will perform the production and shipping of the product. Interactive contract manufacturing involves designing, building and delivering interactive products for a business. Electronic contract manufacturing is the designing, testing, manufacturing, distribution and repair of electronic components for a business.
There are advantages and disadvantages to contract manufacturing or outsourcing. The capital required to start a business is reduced because you don't have to pay for the building, equipment and labor. The contract manufacturer may have a lot of experience and advanced skills in producing the product. However, you lose a significant amount of control over the production strategy. A lot of contract manufacturing is performed by companies located outside of your country. This may result in communication problems. In addition, the quality of the final product may be different from the quality you expect or demand.
Read more about contract manufacturing by visiting the links on this Business.com page.