Contract Manufacturing - Meaning, Importance, Advantages and Examples of Apple and Foxconn (242)

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Contract Manufacturing refers to the practice of outsourcing a part of the product production process from a third party

Contract Manufacturing helps an organization to sell its products without the hassle of running a manufacturing plant

Why Is Contract Manufacturing Important?

1. Contract Manufacturing creates numerous opportunities for new and upcoming technologies
2. It gives the manufacturers a chance to work for big companies

Industries that use Contract Manufacturing

1. Aerospace Production
2. Defence Industry
3. Computer
4. Semiconductor
5. Medical
6. Energy
7. Personal Care
8. Food Manufacturing
9. Packaging
10. Automotive fields
11. Pharmaceutical industry
12. Electronics industry

Some types of Contract Manufacturing include

- Complex industry
- Machine control industry
- CNC machining
- Sheet metal forming
- Die casting
- Forging
- Grinding, Milling, and Broaching

Contract Manufacturing Advantages

1. Cut down costs
2. Generate higher profits
3. Do not have to use in-house resources
4. Easy to get technical insight
5. Greater flexibility within the team
6. Creates more opportunities
7. Gives more time to the workforce that can be utilized on better things
8. Access to greater resources helps the products to become scalable
9. Can save on the cost of capital as they do not have to buy any equipment, training, labor
10. Increased productivity

Contract Manufacturing Disadvantages

1. It is not easy to find a hiring company that will provide the highest possible quality.

2. The organization surrenders a part of the control to the hiring company and becomes dependent on it.

3. Greater risk in terms of long lead times, language barriers, and cultural differences.

4. Communication gap.

5. Intellectual property is at risk.

Contract Manufacturing Examples

1. Foxconn (officially known as Hon Hai Precision Industry Co., LTD).
2. Apple & Contract Manufacturing
- Foxconn, Pegatron, Wistron and COMPAL

3. Other Suppliers

- Skyworks
- Cirrus Logic
- Jabil
- Broadcom
- Lumentum
- Luxshare
1. Foxconn, Apple’s Contract Manufacturer to manufacture their products

This video is on Contract Manufacturing and it has the following sub-topics.

Time Stamps

0:00 Introduction to Contract Manufacturing
00:20 What is Contract Manufacturing?
00:58 Why Is Contract Manufacturing Important?
01:25 Industries that use Contract Manufacturing
02:00 Contract Manufacturing Advantages
03:12 Contract Manufacturing Disadvantages
04:39 Contract Manufacturing Examples
04:42 Foxconn (officially known as Hon Hai Precision Industry Co., LTD).
05:09 Apple & Contract Manufacturing
05:27 Other Suppliers
06:13 Foxconn, Apple’s Contract Manufacturer to manufacture their own products

Видео Contract Manufacturing - Meaning, Importance, Advantages and Examples of Apple and Foxconn (242) канала Marketing91