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Kopek Industries

FAQ

Contract

In a contract arrangement, a specific product or group of products is the focus, often for high-volume production runs and in situations where per-piece pricing is crucial. The customer still controls the equipment, materials, technical knowledge and quality management. The offshore contractor has more control over the process and the manufacturing operation.

Strategic Alliance

These long-term agreements are usually employed to facilitate significant developments, such as the launch of a new manufacturing venture. The agreement defines the purpose and benefits for the onshore and offshore companies, how they will share risks, and what each will contribute, including capital, process, materials, systems, management, etc.

Turnkey

This type of outsourcing arrangement becomes viable when working with offshore manufacturers who have existing capabilities, processes, materials sourcing, quality systems and technical expertise in place. In this case, the offshore provider offers comprehensive, start-to-finish solutions.

ODM - Original Design Manufacturers

In recent years, some OEM's have also taken on a larger role in the design of the product they are manufacturing. The term ODM, Original Design Manufacturers is used to describe companies that design and manufacture a product that is then sold under other brand names.

OEM - Original Equipment Manufacturer

An OEM is a company that builds components that are used in systems sold by another company called a value-added reseller or VAR. The practice of a VAR selling products with components from OEMs is common in the electronics and computer industry. Typically an OEM will build to order based on designs of the VAR.