What is a Contract Manufacturer (CM or EMS)?

Contract Manufacturer Definition

A contract manufacturer (CM) contracts with original equipment manufacturers (OEMs) or original design manufacturers (ODMs) to produce parts or products.

What is a Contract Manufacturer

FAQs

What is an example of industrial contract manufacturing?

Industrial contract manufacturing is a subset of contract manufacturing that focuses on manufacturing industrial equipment and executing industrial operations. Commuter train lines, rubber products, textiles, heavy machinery, and plastic injection molding are all examples. Some industrial electronic components can also be produced by industrial contract manufacturers.

source: https://www.contract-manufacturers.org/

What makes a good contract manufacturer?

Choosing a contract manufacturer and selecting the right contract manufacturer are two distinct issues that might result in drastically different outcomes if handled incorrectly. Good contract manufacturers are far more than supply chain providers—they are an extention of the manufacturing company’s team. They recognize and handle your items as if they were their own and they are meticulous with handling their operations and capital management.

source: https://www.fairlawntool.com

Do contract manufacturers take on a high risk?

Product liability is one of the most significant hazards linked with contract manufacturing arrangements. Product liability claims can occur when items fail to meet regulatory criteria, specifications, or quality controls, or when defective products cause bodily injury or death. The possibility of intellectual property lawsuits increases as products are distributed into the marketplace. To protect the customer from third-party infringement claims, appropriate and customary indemnification terms should be included in the contract.

Source: https://www.mayerbrown.com

The Cost
of
Mistakes

Delivering new products to market is challenging. And It is difficult to see the cost impact of one or more mistakes.

Try our calculator to estimate the impact on your business. Input your business details, select a challenge, and see the real-world cost impact as validated by our customers.