Contract manufacturer

A contract manufacturer (CM) is a manufacturer that contracts with a firm for components or products (in which case it is a turnkey supplier). It is a form of outsourcing. A contract manufacturer performing packaging operations is called copacker or a contract packager. Brand name companies focus on product innovation, design and sales, while the manufacturing takes place in independent factories (the turnkey suppliers).[1]

Most turnkey suppliers specialize in simply manufacturing physical products, but some are also able to handle a significant part of the design and customization process if needed. Some turnkey suppliers specialize in one base component (ex. memory chips) or a base process (e.g. plastic molding).[1]

  1. ^ a b Vind, Ingeborg; Fold, Niels (January 2007). "Multi-level Modularity vs. Hierarchy: Global Production Networks in Singapore's Electronics Industry". Geografisk Tidsskrift-Danish Journal of Geography. 107 (1). Taylor & Francis: 69–83. doi:10.1080/00167223.2007.10801376. ISSN 0016-7223. S2CID 140722530.(subscription required)

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