This document discusses contract manufacturing. It defines contract manufacturing as outsourcing certain production activities, such as component manufacturing or product assembly, to a third party. Outsourcing allows companies to cut costs. Advantages of contract manufacturing include cost savings, flexibility, and a focus on core competencies, while disadvantages can include decreased quality control and loss of strategic alignment. The document also provides examples of industries that utilize contract manufacturing, such as pharmaceuticals and electronics. It lists some common contract manufacturing services like packaging, clinical trial supply, and quality testing.