Contract Manufacturer

Similar to an electronic manufacturing service, a contract manufacturer is a third-party manufacturer of components or products for a company. An organization usually approaches a CM to identify pricing for a product based on variables such as labor, material cost, and automation processes.

There can be numerous benefits to working with a contract manufacturer, including cost savings and access to labor. However, there can be multiple risks associated with the partnership as well. Some setbacks include a hands-off approach to manufacturing your product, loss of flexibility and responsiveness, and less quality control.

While there are hazards associated with contract manufacturing, Lytica’s SupplyLens Pro platform can identify the risks in your manufacturing process and ultimately uncover cost reduction opportunities.