Manufacturing contracts
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Manufacturing contracts are agreements where a company contracts another company to manufacture its products using the contracting company's brand. The international company pays and retains responsibility for promotion and distribution while the local manufacturer is responsible for production. Key participants are the parent company, local manufacturers, and customers. Examples given are an Indian company manufacturing for an American one and Nike using Asian contract manufacturers. Advantages include lower costs, risk division, and access to expertise while disadvantages are the contracting company takes on all decisions and risks loss of quality control and jobs.
Manufacturing contracts
- 1. MANUFACTURING CONTRACTS Camila Andrea Aguiar Mahecha Carmen Andrea Bonilla Salcedo LOGO
- 2. What Is ? MANUFACTURING CONTRACTS Is a contractual agreement between a company and a foreign producer This the company retains responsibility for the promotion and distribution of its product
- 3. What Is it? What is it ? The international company pays another to manufacture its products with its brand.
- 4. Are also known as Manufacturing contracts are also known as: Maquila contract Subcontract
- 5. Participants Participants whithin Manufacturing Contracts Parent Company - Is the company that will do the contract Local manufacturers from various countries - The company that will manufacture the product Customers - who buy the product
- 6. Examples 1. The Indian company manufactures it and does all the packaging of the product as required by the American company .. 2. Nike uses contract manufacturers throughout Asia to manufacture its footwear and sportwear
- 7. ADVANTAGES 1 2 3 ACCESS TO LOWER DIVIDE EXTERNAL COSTS RISK EXPERTISE IN PRODUCT SALES www.themegallery.com
- 8. DISADVANTAGES 1 2 3 The company NO QUALITY LOSS OF takes all CONTROL JOBS the decisions www.themegallery.com
- 9. Video Video http://www.youtube.com/watch?v=9Qzm7MCusGM www.themegallery.com
- 10. REFERENCES International Management: Managing in a Diverse and Dynamic Global Environment by A. Phatak, R. Bhagat and R. Kashlak. http://www.eumed.net/cursecon/libreria/l hp/5d.htm http://www.sporttech- argentina.com/exportaciones.html www.themegallery.com
- 11. . LOGO