Contract manufacturing is a practice that describes the signing of a working agreement between two organizations. As mentioned in the agreement, one company offers products or services on behalf of the second company. What this helps in, is getting freed from maintaining and managing manufacturing tools and facilities, selecting and purchasing raw materials and also hiring labor that can help in producing the end product. Today, most businesses are entering into contract manufacturing agreements to enjoy a win-win situation. Just a few such include types of a pharmaceutical contract manufacturing company, computer manufacturing, food manufacturing and electronic contract manufacturers (ECM). Also, companies dealing with production of hygiene and personal care products, medical supplies, automotive parts and more are entering this setup.