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Contract Manufacturing Vs Outside Processing

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edited Jul 11, 2019 10:46AM in Manufacturing 5 comments

Summary

Can you give a view on when do we decide to use Contract Manufacturing Vs Outside Processing

Content

As far as I understand --- 

If the OEM maintains complete control over the CM Order - we go for CM. (meaning where OEM like regular updates)

Also in CM -- the OEM is the owner of the material\components.

In Outside processing -- the vendor owns the material\components and also does the job on the work order.

The reason I ask is -- My customer -- Outsources its manufacuting to a contract manufacturer but doesn not own the components or anything. It doesnt even care to have any updates -- it just receives the final product.

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