Question

Which is the first step in the process of Contract Manufacturing?

• A. Contract manufacturer manufactures and reports progress to the original equipment manufacturer
• B. Customer places a sales order
• C. Product shipped on the customer's request.
• D. Manufacturing is outsourced partially to a contract manufacturer.

Answer 1

The correct option is B Customer places a sales order

A contract manufacturer is a manufacturer that contracts with a firm for components or products. It is a form of outsourcing. A contract manufacturer performing packaging operations is called co packer or a contract packager.