contract manufacturing
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Maria Camila Garzón Villanueva
International Business I
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Is a process that establishes a working agreement between two companies. As part of the agreement, one company custom produces parts or other materials on behalf of their customer.
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*Contract assembly
*Contract electronic assembly
*Electronic contract manufacturing
*General machining
*Medical device contract manufacturing
*Pharmaceutical contract manufacturing
*Rapid prototyping
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*Advanced Skills
*Focus
*The company does not have to commit resource for setting up production facilities.
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*If frees the company from the risk of investing in foreign countries.
*Less risky way to start with.
*Contract manufacturing may enable the international firm to enlist national support.
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*Lack of Control
*Relationships
*Quality concerns
*Intellectual Property Loss
*Loss of Flexibility and Responsiveness
*There will be the lost of potential profits from manufacturing.
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*Contract manufacturers. (n.d.). Retrieved from http://www.xmultiple.com/xwebsite-forum-cm.htm
*What is contract manufacturing?. (n.d.). Retrieved from http://www.wisegeek.org/what-is-contract-manufacturing.htm
*Cherunilam, Francis. International Business. fifth Edition. New Delhi: 2010. Print
*"IQS." Contract Manufacturing Types and Terms. N.p.. Web. 26 Mar 2013. http://www.contract-manufacturing.bz/Types-and-Terms.htm
*"Wikinvest." Manufacturing. N.p.. Web. 26 Mar 2013. <http://www.wikinvest.com/stock/Nike_(NKE)/Manufacturing>.