Contract manufacturer

Contract manufacturers , contract manufacturers or contract manufacturers are industrial companies that produce products in series on behalf of and for the account of branded goods manufacturers without appearing as a manufacturer to the buyer . The advantage is the anonymity of the manufacturing company, the disadvantage is the inability to give the manufacturing company an image . However, they must be distinguished from the extended workbench , as this is defined as the outsourcing of certain upstream or downstream work on a product from production.

Well-known contract manufacturers are, for example, Foxconn or Flextronics , who are responsible for production in the supply chain of a smartphone, while companies such as Apple are responsible for marketing and research and development.

The transfer of the manufacture of branded products is of paramount importance for the computer industry ( original equipment manufacturers), but companies have also specialized as contract manufacturers in many other branches of industry, e.g. B. in the pharmaceutical industry, the cosmetics industry and in the field of food production ( trademarks ).

See also

• Original Design Manufacturer
• Fabless
• Development service provider

Individual evidence

1. ↑ R. Mudambi: Location, control and innovation in knowledge-intensive industries . In: Journal of economic Geography , 8 (5), 2008, pp. 699-725.
2. ^ J. Froud, S. Johal, A. Leaver, K. Williams: Financialization across the Pacific: Manufacturing cost ratios, supply chains and power . In: Critical Perspectives on Accounting , 25 (1), 2014, pp. 46–57.