Outsource manufacturing refers to the process where a company contracts an external vendor or third party to produce goods or components instead of manufacturing them in-house.
Key Features of Outsource Manufacturing:
1.Third-Party Production:
- The company provides raw materials, specifications, or designs to the manufacturer.
- The third party is responsible for producing the finished goods or components.
2.Partial or Complete Outsourcing:
- Partial Outsourcing: Some stages of the manufacturing process (e.g., assembly or finishing) are handled externally, while others are done in-house.
- Complete Outsourcing: The entire production process is carried out by the third party.
3.Focus on Core Activities:
- By outsourcing manufacturing, companies can focus on core business activities such as design, marketing, and customer service.