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