What Is a Contract Manufacturer?

[haazare]

A contract manufacturer (CM) is a type of manufacturing business that specializes in producing goods for a client, based on specific criteria that is provided by that client. In most cases, the goods that are produced are created as private label products, meaning they are presented to the general public as goods that were manufactured by the client rather than the contract manufacturer.

[justeen]

Contract manufacturing is a process that established a working agreement between two companies. As part of the agreement, one company will custom produce parts or other materials on behalf of their client. In most cases, the manufacturer will also handle the ordering and shipment processes for the client.