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A contract manufacturer provides manufacturing services for companies that sell products versus services. Contract manufacturing (or co-packing) is a form of outsourcing that continues to be in demand, especially in the food industry, where the projections are for even more solid growth.
Most contract manufacturing agreements will include some, or all of, the following elements:Non-disclosure Agreements (NDA)Licensing Agreements.Purchase Orders.Quality Standards.Supply Chain Agreements.Essential Processes.Termination Clauses.
Contract manufacturing involves hiring a third-party company to create, manufacture, and/or assemble your product. Some contract manufacturers get involved in the process very early, helping you design a product for manufacturing and building prototypes to test before the first manufacturing run begins.
What is Food Contract Manufacturing? Food contract manufacturing is a form of outsourcing; one company will hire another to produce food products for it while the customer business focuses more on branding and marketing.
What is Food Contract Manufacturing? Food contract manufacturing is a form of outsourcing; one company will hire another to produce food products for it while the customer business focuses more on branding and marketing.