contract manufacturer

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contract manufacturer

An organization that makes products under contract for other companies. It caters to the OEM market. In the computer and electronics fields, thousands of products are manufactured by contract manufacturers. These products are ordered by and branded with the OEM's name, which sells them to its customers.

Contract Manufacturers Can Be Huge
Some of the most popular products in the business are made by contract manufacturers. For example, Microsoft's Xbox game machine is made by Flextronics Corporation (, a huge company with factories around the world and nearly USD $15 billion in sales in 2004. Flextronics also makes cellphones for Ericsson, routers for Cisco and printers for HP. Other major contract manufacturers are Flextronics International (, Sanmina-SCI Corporation ( and Celestica (

An "original design manufacturer" (ODM) is similar to a contract manufacturer, but typically owns the intellectual property (IP) for the product itself, while the regular contract manufacturer uses its customer's designs and IP. Contract manufacturers can make hundreds or even thousands of different products, but ODMs often specialize in only a handful of categories.

Contract manufacturers in the electronics field that not only make products, but offer assistance with the design and supply chain generally prefer to call themselves "electronics manufacturing services" (EMS) or "contract electronics manufacturing services" (CEMS). See OEM.
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References in periodicals archive ?
If a contract manufacturer strongly encourages you against using other labs, or refuses to accept the results of other qualified laboratories, then you should look for a different contract manufacturing partner.
Holtby suggested that working with a contract manufacturer offers a wider variety of expertise, while simultaneously streamlining the production process.
IP embedded in the device is warranted as owned by the OEM, and the OEM provides the contract manufacturer with a full indemnification.
A contract manufacturer that goes out of business could leave you scrambling to find a replacement while dealing with production interruptions, product shortages and angry retailers.
Knowledge and Experience: Partnering with a contract manufacturer with a proven industry track record ensures maximum cost-effectiveness, regulatory compliance and timeliness-to-market.
The agency generally notifies the OEM that it has audited the contract manufacturer only if it uncovers significant compliance issues; thus, an agreement must require the contract manufacturer to provide notice to the OEM of any FDA inspection relating to its devices.
936 credit based on possessions contract manufacturers also need to reevaluate their positions.
a business-equipment contract manufacturer for IBM and Eastman Kodak, says there are plenty of incentives for molders.
This led to the creation of the "hydra model" of medical device development: device developer, contract designer, engineering consultant, prototyper, contract manufacturer and others.
Adding to this was Richard Kaufman, executive vice president, Paragon Laboratories, Torrance, CA, who said, "The key to obtaining competitive advantage as a contract manufacturer requires striving to be proactive at addressing your customer's needs as opposed to being reactive.
As a result, from an economical standpoint, it may be in some companies' best interest to work with a well-established contract manufacturer in order to continue marketing their products.

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