The Private Label Supply Chain: Improving Performance Through B2B Outsourcing
Companies sell goods directly to consumers. Retailers that are vertically integrated use their own factories to produce some of their own private label products. Manufacturers have traditionally developed and marketed the brands are most familiar with. They may or may not actually manufacture the products. As part of their business, they may also produce private label products for retailers. Companies that either manufacture products on behalf of a retailer or brand manufacturer or provide components or raw materials for the process. Those that manufacture products on behalf of manufacturers or retailers are known in industry as "Contract manufacturers."