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5 Benefits of Toll Manufacturing

5 Benefits of Toll Manufacturing

5 Benefits of Toll Manufacturing

Toll manufacturing is an increasingly popular processing method used by companies worldwide. However, many people don’t understand the ins and outs of toll manufacturing or what makes it such a cost-effective strategy. Essentially, toll manufacturing is when one company processes materials for another.

When a company wants to make a product but doesn’t want to invest in the specialized equipment necessary, they hire a third-party toll manufacturing company that has the tools and experience to produce large- and even small-scale products. You provide the raw materials or semi-finished products, and your toll manufacturing partner will process them to your required specs to create the desired finished product.

In addition to the right equipment, the toll manufacturer has organizational systems and skilled labor to optimize production. Many toll manufacturing companies also offer warehousing and shipping services to cover your bases.

Toll manufacturing is sometimes compared to contract manufacturing. While they’re both ways to outsource production to a third-party company, these options have some key differences. The most significant difference is where the materials come from. Toll manufacturing requires you, the source company, to provide the raw materials, while contract manufacturing relies on the third party to source materials itself.

5 Benefits of Toll Manufacturing

Consider working with a toll manufacturer to create your products and enjoy several unique benefits.

1. No Capital Investment

This advantage is one of the biggest reasons people choose toll manufacturing. Simply put, it saves you money!

When you partner with a toll manufacturer, you don’t have to invest your money into the specialized — and often expensive — equipment required to make the products you want. You’ll just choose a third-party company that already has the tools you need to start immediately.

In addition to avoiding the hefty price of equipment, hiring a third party also lets you eliminate the costs associated with developing the proper processes, hiring skilled labor and purchasing space to produce and sometimes store your products. You’ll get a great return on your investment and boost your bottom line.

2. Raw Materials

When you use toll manufacturing, you supply the raw or semi-finished products the manufacturer will use to make your products. As the originating company, you have full control over the sourcing quality of your materials. You can ensure the manufacturer uses the right raw materials to get the high-quality final product you need.

3. Customization

Toll manufacturers typically offer customized production options, formats and packaging solutions so you can get the exact specifications you’re looking for. Customization is an excellent way to get unique products and take advantage of the manufacturer’s specialized equipment without investing the time and money required to make it yourself.

4. Storage

Many toll manufacturers can even store your end product, saving you space. You won’t have to use your resources searching for and purchasing the necessary warehouse space. Instead, let the third-party toll manufacturing companies manage on-site and off-site storage and sometimes even final product delivery. You can focus on your other responsibilities without the stress of storage and delivery.

5. Flat Fee

The toll manufacturing flat fee is another way this production process can save you money. Many toll manufacturers offer a flat fee for the cost of labor and packaging. That means the price you agree to won’t change unexpectedly, no matter how much you produce or your customization options.

5 Benefits of Toll Manufacturing

Toll Manufacturing Services From Blended Wax

With all of these benefits in mind, it’s easy to see why toll manufacturing is becoming so popular among companies that need specialized products. If you’re interested in learning more about toll manufacturing with the experts at Blended Wax, visit our Custom Toll Manufacturing of Wax page or get in touch with us today!