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== What are differences between Toll Manufacturing and Contract Manufacturing ? ==
== What are differences between Toll Manufacturing and Contract Manufacturing ? ==
In practical terms, these are just two different names for the same thing. There may be different conventions in different industries. In the food & beverage manufacturing business, I have seen the term toll manufacturing come up, rather than contract manufacturing. That is only anecdotal though. A more important consideration is whether the contract manufacturer is operating on a turnkey or consignment basis. A turnkey contract manufacturer (the more typical arrangement) will buy the raw materials to be used in the production process and own the inventory, including finished goods. A consignment contract manufacturer does not take title to raw materials, work in progress or finished goods; the contracting party retains title throughout the process.

Revision as of 00:00, 31 March 2011

Misspelling: "qoute"

Different between Business Model of Sourcing and Contract Manufacturing

What is the difference between characteristics of Sourcing and Contract Manufacturing? How does Contract Manufacturing bring more ecnomical value compare to source? Who are Contract manufacturing in Automotive Sector? -Selva

difference to outsourcing?

What is the difference to outsourcing? --Saippuakauppias 18:41, 29 October 2007 (UTC)[reply]

Differences between Outsourcing and Contract Manufacturing

Outsourcing usually refers to labor, such as a call center. Contract manufacturing involves producing an item. - MSQ.

What are differences between Toll Manufacturing and Contract Manufacturing ?

In practical terms, these are just two different names for the same thing. There may be different conventions in different industries. In the food & beverage manufacturing business, I have seen the term toll manufacturing come up, rather than contract manufacturing. That is only anecdotal though. A more important consideration is whether the contract manufacturer is operating on a turnkey or consignment basis. A turnkey contract manufacturer (the more typical arrangement) will buy the raw materials to be used in the production process and own the inventory, including finished goods. A consignment contract manufacturer does not take title to raw materials, work in progress or finished goods; the contracting party retains title throughout the process.