Contract manufacturer

A contract manufacturer (CM) produces goods under contract for an outsourcing company under the label or brand name of that company. If the good is a complete product, rather than product component(s), the CM may be termed a turnkey supplier. 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).

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 (e.g. memory chips) or a base process (e.g. plastic molding).

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