Contract manufacturing is an arrangement in which one company produces goods for another under an agreed specification. The buyer may own the brand, formula, design, tooling or some of the materials.
| Area | What to record |
|---|---|
| Decision | The agreement should define specification control, forecasts, material responsibility, change approval, yield, scrap, quality release, confidentiality, intellectual property and continuity. |
| Evidence | Confirm the actual production site, subcontracting, capacity, certifications, tooling ownership, testing and batch records. |
| Watch point | A contract manufacturer performs production. It may or may not design the product, source every material or own the regulatory approval. |
When the term matters
The agreement should define specification control, forecasts, material responsibility, change approval, yield, scrap, quality release, confidentiality, intellectual property and continuity.
Checks before approval
Confirm the actual production site, subcontracting, capacity, certifications, tooling ownership, testing and batch records.
A contract manufacturer performs production. It may or may not design the product, source every material or own the regulatory approval.
