Study On Contract Manufacturing And Its Application

China's industrialization intimately connected with the development of the manufacturing industry. However, the restructuring and upgrade of industries now face the challenges from developed countries as well as other developing countries. Therefore, it is a pressing issue to advance technology and enhance manufacturing capability. Contract Manufacturing is a mode to provide various manufacturing-related service, which resulted from the multinational corporations' outsourcing due to their business reorganization. The successful cases of those Contract Manufacturers present a new idea to the Chinese enterprises lack of R&D and marketing advantages. Hence, the study of contract manufacturing and lessons from the international practices are strategically helpful to the growth and boom of Chinese enterprises. Meanwhile, the core concept of contract manufacturing also enlightens us in the aspect of agriculture.The dissertation attempts to find an approach to enhance the performance of Chinese enterprises in the aspects of manufacturing and global operation by investigating the possibilities of the application of contract manufacturing in China. Chapter One is the summary of theories. We talk about the Corporate Core Competence, Value Chain Theories and the discussion of contract manufacturing in World Investment Report. Chapter Two expatiates the definition and characteristics, and analyzes the current situation based on the cases of domestic and foreign contract manufacturers. Chapter Three studies the reasons of contract manufacturers'global expansion and their new focus on China. Chapter Four generalizes the industrial features that contract manufacturing could be applied to. In this part, we choose the tech-oriented, low-tech industries and agriculture as the subjects, and conduct the application research respectively.The Essence of contract manufacturing is Scale plus Specialty. The separation between manufacturing and design, between manufacturing and marketing provides the opportunities to both outsourcing corporations and contract manufacturers. First, as to those that choose to follow contract manufacturing mode, clients and supply chain are crucial. As for the enterprises that enjoy brand advantages, the co-operation with contract manufacturers and more investment in R&D could be a better choice. Additionally, the majority are small and medium enterprises (SMEs) in those low-tech industries. The imitation of the mature mode of contract manufacturing is not practical. However, the corporate agglomeration may be an effective way referring to the industrial park and value chain separation of contract manufacturing. Moreover, the coordination with those international retailers can also counteract SMEs' disadvantage in international sales outlets. Finally, commercial enterprises can strengthen their supply chain management to combine the individual farmers and supermarkets or food stores together and provide necessary supervision to farm produce and service assistance to farmers.