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What is Contract Manufacturing?

ValQ
January 5, 2022

Contract Manufacturing is a business model in which a firm hires another firm to produce components, assemblies, or the final products. It is a form of outsourcing where a contract manufacturer enters into a business agreement with another company for manufacturing the requirements over a specific period.

Contract Manufacturing enables numerous small businesses to sell their products without investing capital for running a factory. Companies can dream up just about anything, have it manufactured easily, and start selling it to the masses with the help of contract manufacturers.

Choosing to partner with a trusted contract manufacturer provides a wide range of benefits for an organization like cost savings, scaled-up production, bolstered quality control, risk mitigation, and efficient management of resources. Contract manufacturers allow companies to focus on growing their business without allocating time and resources to logistics and other day-to-day aspects of manufacturing.

Below are some of the crucial characteristics to consider before selecting a contract manufacturer,

  1. Capabilities
  2. Equipment
  3. Experience
  4. Capacity
  5. Personnel
  6. Quality Standards

Try out the free demo for Contract Manufacturing Analysis using Microsoft Power BI here.

Download the latest version of ValQ here and get started with ValQ Plan today.

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Discover the incredible power of dynamic and collaborative business planning with ValQ
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Visualize and analyze business outcomes with ease

Discover how ValQ delivers agile, interactive and intuitive business planning.
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ValQ
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ValQ empowers analysts, executives and decision-makers across departments and functions. Model any business scenario in minutes, build complex business plans, what-if simulations, create & compare budgets, forecasts and scenarios – all within Microsoft Power BI. The product is developed by Lumel Technologies (formerly Visual BI), which has a decade of experience in building add-on solutions on top of BI platforms (SAP BI and Power BI) with our suite of innovative products such as xViz and Inforiver.

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