The dynamics in retail and consumer packed goods (CPG) industries has touched many aspects of the supply chain, and contract manufacturing is no exception to the rule. Industry players world over have leveraged this arena to its full potential, as each player focuses on its core competencies.
Contract manufacturing can be defined as 'outsourcing of a requirement to manufacture a particular product or component to a third party.' It enables organizations to reduce the investments in their own manufacturing capabilities, helps them focus on their core competencies while retaining a high-quality product with a reasonable price, and delivered on a flexible schedule.