Contract manufacturing (also known as outsourced manufacturing or outsourcing) is a business model where a brand owner uses a third party to manufacture their products either fully or partially (i.e. contracting a specific manufacturing operation).

In situations where the brand owner is not responsible for purchasing or tracking any raw materials, meaning that all the components are managed by the contract partner, the user doesn't need to track materials in Katana. In this case, you can use Katana similarly to resellers by purchasing products, without the need to use the Make screen or Manufacturing Orders.

Katana can support a workflow where the brand owner is responsible for purchasing raw materials for the contract manufacturer and tracking the stock for those materials.

This video explains the workflow in Katana for brand owners who purchase and track the stock for raw materials and use a contract manufacturing partner for either the full manufacturing process or only a certain manufacturing operation.

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