Contract manufacturing is the outsourcing of certain production activities to a third-party manufacturer. A company may outsource the manufacture of certain components for the product, the assembly phase or only the packaging stage. Outsourcing companies have become specialists in a multitude of services for manufacturers including design, production, packaging, assembly, labour, and distribution.
There are many benefits of contract manufacturing, including:
- Cost saving
- Favourable relationships with raw material suppliers
- Higher quality control
- Economies of Scale
Finding the right partner is an invaluable step forward in growing your business and gaining a competitive advantage.