Glossary Term: Contract manufacturer (CM)
A Contract Manufacturer is a firm hired by a company to focus on the manufacturing or assembly of all or part of the final product.
By contracting a manufacturer, hiring firms generally can save money as the manufacturer will have experience in the manufacturing process as well as plant assets specific to the manufacturing of similar products. Additionally, through a CM, firms are able to focus energy on the sales and marketing of the products rather than the manufacturing and are thus more efficient for the firm.
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