As part of the agreement, one company custom produces parts or
other materials on behalf of their client. Process that establishes
a working agreement between two companies. the client does not have
to maintain manufacturing facilities, purchase raw materials, or
hire labor in order to produce the finished goods
Slide 3
General concept of contract manufacturing is not limited to the
production of goods. Services such as telecommunications, Internet
access, and cellular services can also be supplied by a central
vendor and private branded.
Slide 4
In a contract manufacturing bisiness model, the hiring firm
approaches the contract manufacturer with a design or formula.
After the bidding process is complete, the hiring firm will select
a source, and then, for the agreed-upon price, the CMs factiry,
produducting and shipping units of the desing on behalfs of the
hiring firm. The contract manufacturer will quote the parts based
on processes, labor, tooling, and material costs. Typically a
hiring firm will request quotes from multiple CMs.
Cost Saving Mutual Benefit to Advanced Contract site skills
Quality Focus Economies of Scales
Slide 7
Lack of Control Quality Factor Misuse of Intellectual Property
Capacity Constraints Loss of Flexibility and Responsiveness
Slide 8
Slide 9
ODM (Original Development Manufacturing) model. GoerTek
initiates the development of Products for Plantronics and offers
Plantronics the right to select the Products for purchase.
Plantronics may provide to GoerTek requirements on industrial
design, product features, performance, price and /or other
requirements to finalize or develop Products for Plantronics. Bulk
Pack or Retail Pack. Goer Tek inc. shall develop packaging
materials for the Products and package the Products according to
the requirements of Plantronics.