Under this model, the manufacturing unit is utilized for various client companies to meet their requirements
Contract Manufacturing
Capability to manufacture different products are housed within the same/ different facilities to enable the buyer to source all its requirements from the same place
The contracts are flexible in nature in terms of the volumes, categories and size
When is it a good fit
The buyer has low / average volume
Wants to meet seasonal / unforeseen demand
Has multiple products
Wants to add new products in their portfolio
Wants thorough quality controls and process consistency