What is outsourcing of manufacturing company. ?

Answer 1

"Outsourcing" is the delegation of production of manufactured products and goods to "off shore" (out of the Continental U.S.) manufacturing plants, usually destined to China, Hong Kong, India, or Monterey, Mexico. These manufacturing plants and/or support manufacturing vendors engineer, tool, and produce the finished products at low marginal costs due to the tremendously cheap mass labor force available in these Developing Nations. They are also responsible for the commercial product packaging, its bulk crating, and the ultimate shipment of the products and goods to their ultimate warehouse distribution centers in the U.S., Canada, Europe, and/or whatever designated market that has been pre-established for the product.

Answer 2

Outsourcing simply means that the company purchases some items from outside suppliers or contractors. They may do this
because it is not economical, effective, or quality responsible
for the company to try to do everything.

Some companies purchase all parts from other suppliers and only assemble the parts into finished products, or they may
even purchase the finished product from a large and efficient
basic manufacturer, only applying a different logo and brand name.

They do it to make the most money they can, with the lowest
costs and exposure.

Answer 3

Pathfind.. is on the right path with that answer. It is often defined as the delegation of non-core...what ever the subject item is. It is usually done when producing items outside the manufacturing environment is cheaper than doing it in-house. Doing it in-house causes overhead and general & administrative expenses to go higher. Most manufacturing companies do not want that to happen because it makes them less competitive. When they bid for a contract, they want to be the lowest bidder.

Answer 4

it can also be a strategic advantage if you outsource to different manufacturers components that contributes into a final assembled product which allows you to source competitively (as the different vendors do not know how important their component is to your final product) and at the same time protect your intellectual property.

Answer 5

Having their manufacturing work done in a country with cheap labor, and then selling their suff here in the U.S. for a high price.

Answer 6

Getting their product manufactured at a place where it is cheap
May be whole lot,or partly
Then assemble at some other place
The process continues