CONTRACT MANUFACTURING

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A “contract manufacturer” is the company an organization hires to handle all the manufacturing services. They're typically the ones who oversee the production process and build the product. Picking the right contract manufacturer should take some time and research.

What is the difference between contract manufacturing and outsourcing?
The short answer: The difference is very subtle. The main difference being that contract manufacturing is a form of outsourcing to practice when you don't have access to the necessary resources to produce products. And outsourcing is usually a tactic to redistribute resources and reduce costs.


Production of complete goods entirely by one firm for another, under the brand or label of the latter. ... For example, large companies that manufacture computer hardware use contract manufacturing for the smaller computer parts and components that are, in turn, manufactured by other firms.