What is meant by External production without provision?
The term "Contract Manufacturing without Customer-supplied Materials" refers to a form of outsourcing where a company contracts external service providers or suppliers to manufacture products or components according to its own specifications, without providing the necessary materials or components. Instead, the contractor uses its own resources and materials for production.
Typical software functions in the area of "Contract Manufacturing without Customer-supplied Materials":
- Order Management: Management of orders for contract manufacturing without customer-supplied materials, including creation, monitoring, and execution of orders.
- Production Planning: Planning and control of production processes at external manufacturing partners to ensure timely delivery.
- Quality Control: Integration of quality inspections and controls during the manufacturing process to ensure products meet specifications.
- Supplier Management: Management of relationships with external manufacturing partners, including performance evaluation and compliance with delivery agreements.
- Cost Management: Monitoring and control of costs for contract manufacturing without customer-supplied materials, including material and manufacturing costs.
- Documentation and Reporting: Recording of all relevant data and generation of reports on manufacturing progress and product quality.
Examples of "Contract Manufacturing without Customer-supplied Materials":
- Manufacturing of electronic components: A company contracts an external manufacturer to produce electronic components according to its specifications without providing the materials.
- Metal processing for automotive parts: An automotive manufacturer outsources the production of metal parts to an external supplier who uses their own materials and machinery.
- Plastic injection molding for packaging: A packaging manufacturer outsources the production of plastic packaging to an external service provider who uses their own injection molding machines and materials.