Glossary · Business & Sourcing
What Is Contract Manufacturing?
Contract manufacturing is the arrangement in which a brand outsources production to an external manufacturer that makes the product to the brand's specification and commercial terms. In cosmetics it covers private label, OEM and ODM models alike, and the contract defines who owns the formula, the tooling and the regulatory documentation.
Why it matters when you source
The term describes the arrangement, not the level of customization — so when a supplier says contract manufacturing, ask which model: selecting their formula, making yours, or developing one for you. The answer decides cost, timeline and ownership.
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