Defining Subcontracting and Multi-Tier Collaboration

Objectives

After completing this lesson, you will be able to:

  • Define Subcontracting and Multi-Tier orders
  • Explain Subcontracting and Multi-Tier order collaboration

Subcontracting and Multi-Tier orders

Subcontracting

Subcontracting is a business model in which part of the manufacturing process is outsourced to another entity. Subcontracting is also referred to as Contract Manufacturing.

Multi-Tier Orders

Multi-Tier is a business model that involves collaborating with multiple suppliers or partners.

Subcontracting with Multi-Tier Order Collaboration

It is possible to combine the features of the Subcontracting and Multi-Tier business models: outsourcing part of the manufacturing process to multiple suppliers or partners.

Log in to track your progress & complete quizzes