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General information about Subcontracting
Subcontracting is a type of industrial cooperation, way of organizing production, using the division of labor between the Contractor/Customer (assembly plants with the minimum of its own manufacturing facilities) and Subcontractors/Suppliers (specialized enterprises producing components and rendering services).
Subcontracting helps Subcontractors (typically, small and medium-sized enterprises) use full capacity of the equipment and achive high labour efficiency through performing of works/services on subcontracts.
The use of subcontracting mechanism also allows to optimize the manufacturing processes in terms of cost saving and thus to significantly improve the competitiveness.
Subcontracting in the Russian Federation is the most common in the following industrial sectors:
- Mechanical engineering, metalworking;
- Electrical engineering, electronics;
- Production of components;
- Rubber and polymer products for industrial purposes;
- Services for industrial use (development of design and technological documentation, industrial design, etc.)
