Contract shoe manufacturing is when a shoe manufacturer produces shoes using the design of another company. Contract shoe production is an opportunity for shoe manufacturers to reduce costs and increase production capacity.
Advantages of Contract Shoe Production
Contract shoe manufacturing has many advantages. These benefits include:
- Cost advantage: Contract shoe manufacturing is a way to reduce costs for shoe manufacturers. In contract shoe production, the shoe manufacturer undertakes only the production of shoes. Other processes such as design, molding and marketing are handled by the company that designs the shoe. This allows the shoe manufacturer to focus on production and reduce costs.
- Production capacity advantage: Contract shoe manufacturing is a way for shoe manufacturers to increase production capacity. In contract shoe production, the shoe manufacturer can only accept orders below its own production capacity. This allows the shoe manufacturer to increase production capacity and produce more shoes.
- Distribution advantage: Contract shoe manufacturing provides distribution advantage for shoe manufacturers. In contract shoe production, the shoe manufacturer only produces shoes. The distribution of shoes is carried out by the company that designed the shoes. This allows the shoe manufacturer to reduce distribution costs.
Disadvantages of Contract Shoe Production
Contract shoe production also has some disadvantages. These disadvantages include::
- Lack of control: In contract shoe manufacturing, the shoe manufacturer only controls the production of the shoe. Other processes such as design, molding and marketing are controlled by the company that designs the shoe. This allows the shoe manufacturer to have limited control over the design and marketing of the shoe.
- Competitive advantage: Contract shoe manufacturing can reduce the competitive advantage for shoe manufacturers. Contract shoe production causes shoe manufacturers to compete with more shoe manufacturers. This could cause shoe manufacturers to lose market share.
Types of Contract Shoe Production
Contract shoe production can be divided into different types. These types include:
- Full contract manufacturing: In full contract manufacturing, the shoe manufacturer only undertakes the production of the shoe. Other processes such as design, molding and marketing are handled by the company that designs the shoe.
- Partial contract manufacturing: In partial contract manufacturing, the shoe manufacturer undertakes part of the production of the shoe. Other processes such as the design of the shoe, molding and marketing are carried out by the company that designed the shoe.
- Automotive contract manufacturing: In automotive contract manufacturing, the shoe manufacturer undertakes the assembly of shoes into automobiles. Other processes such as the design of the shoes, molding and marketing are handled by the automaker.
The Situation of Contract Shoe Production in Turkey
Turkey has an important position in contract shoe production. In Turkey, there are many companies operating in contract shoe production. The main reasons for the growth of contract shoe manufacturing in Turkey include:
- Cheap labor: Labor costs in Turkey are lower than in other countries. This makes Turkey an attractive destination for contract shoe manufacturing.
- Quality workmanship: The quality of workmanship in Turkey is at world standards. This makes Turkey a reliable destination for contract shoe manufacturing.
- Preferred location: Turkey is located close to the European Union. This makes Turkey a suitable destination for European companies for contract shoe production. makes it.
Conclusion
Contract shoe production is an opportunity for shoe manufacturers to reduce costs and increase production capacity. Turkey has an important position in contract shoe production.