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Making a Manufacturing Contract
Once you've developed a product, a manufacturer brings it to life. A manufacturing contract establishes the service agreement between a product developer and manufacturer. The contract will cover details such as unique product specifications, order numbers, inventory details and payments. With a signed manufacturing contract in place, your product will be ready to market in no time.
A contract manufacturer is an organization that entirely produces complete goods for another company. The contract manufacturer sources any raw materials necessary for production and also provides the manufacturing processes necessary to meet specific requirements regarding quality, quantity, and delivery dates.
Contract manufacturing is also commonly referred to as private label manufacturing.
Many mobile phones and game consoles are produced under contract manufacturing agreements.
With regard to toll manufacturing, a company would supply a third-party company with raw materials. The third-party company would then provide the manufacturing services. In comparison, the third-party company would be responsible for sourcing raw materials as well as providing manufacturing services for a contract manufacturing agreement.