Contract manufacturing (CM) is a manufacturing-as-service approach: the customer provides all designs and specifications, and the supplier simply builds to the drawing. On the other hand, in OEM, the customer is providing a portion of the design (external, internal, some specs), and the supplier is incorporating their existing components and expertise to create a finished product.
In contract manufacturing, the client may approach the manufacturer at different stages in the product development life cycle, such as design, testing & prototyping, assembly, etc. If the client contracts a single manufacturer to handle everything from design to delivery, this is a form of CM known as turnkey manufacturing. Another form of CM is contract assembly, in which a client contracts a manufacturer to assemble ready-made parts into a finished product.
Contract manufacturing cuts across numerous product categories across various industries. It is often associated with custom manufacturing. CM offers greater manufacturing flexibility and control, complete ownership of IP rights, and product uniqueness.
What is Turnkey Contract Manufacturing
Turnkey Contract Manufacturing is an all-inclusive manufacturing solution that encompasses every stage of the product development process, from concept and design to production, assembly, and delivery. By collaborating with a turnkey manufacturer, you can consolidate your manufacturing process and minimize the need for multiple suppliers.
In turnkey manufacturing, the service provider assumes full responsibility for managing the entire production chain, including procurement of raw materials, component fabrication, quality control, assembly, packaging, and delivery. This end-to-end approach allows for better control over the final product’s quality and quicker time-to-market, making it a desirable option for businesses looking for enhanced efficiency and reduced costs.