Helah Auto Private Limited
Enabling Indian Technologies
FSS License No: 12423999002046
FSS License No: 12423999002046
Contract manufacturing is when one company enters into an agreement with another to produce components or products over a specific timeframe. This is outsourcing on a manufacturing level, and like outsourcing employees, it lets companies compete in areas that were previously unreachable.
It’s a business agreement where one company pays another to provide the necessary components to assemble finished goods, or even manufacture the product in its entirety. Contact manufacturers are third-party providers, and most only work as subcontractors or sell their products to other businesses.
This type of contract manufacturing is when the contractor delivers a finished product, as specified by the company that hired them. That product is delivered to an inventory warehouse or directly to the store. Sometimes, these items are the product of several components.
In that case, the components will be assembled prior to shipment. This is an ideal relationship for businesses that have a clear product vision but want to outsource the entire production.
In this, the contract manufacturer is only involved with one part of the larger process and acts more as a subcontractor in relation to a general contractor. They are hired by a general contractor who needs their specialized services.
This is used with the production of very complex products, and contract manufacturers can help by offering lower costs and faster production cycles.
GST No: 33AAGCH4855B1ZV
FSS License No: 12423999002046
UDYAM-TN-02-0149714