Contract manufacturing, OEM and private label

In contract manufacturing a partner factory makes an item to another company’s specification; OEM and private label describe whose design and brand it carries.

Also called: CMT · Private label · White label · OEM production

In contract manufacturing, a producer makes goods to a specification that it does not own, for another company that sells or supplies them. The terms used around it describe the split of responsibilities:

  • OEM (original equipment manufacturer): the factory produces to the client’s design, or supplies its own design for the client to sell under the client’s name.
  • Private label: the product is sold under the buyer’s brand, with the buyer’s labels and packaging.
  • CMT (cut, make, trim): in textiles, the factory provides labour and sewing while the client supplies or nominates the fabric and trims.

For a buyer, the important questions are who owns the specification and design rights, who approves samples, and which documents identify the actual producer. On this site, each item states whether it is made in-house, contract-manufactured or sourced.

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