There are many misconceptions about toll manufacturing, which is similar to contract manufacturing, floating around the manufacturing world today. You may be wondering how to sort through all of the information out there today. How do you know if toll manufacturing is right for you? We are here to set the myths about toll manufacturing straight. Keep reading to find out the top 5 misconceptions about toll manufacturing and what you need to know.
1. R&D should be able to manage production
This is false for one big reason: many times smaller companies think that they can put their manufacturing operations in with their product development. This is not a successful strategy. Manufacturing requires skilled professionals. Your R&D people are not necessarily trained to manage the manufacturing process. Do yourself a favor and invest in someone that knows what they are doing.
2. You shouldn’t be using a toll manufacturer that also builds for your competitor
False. In reality there isn’t really anything that should stop you from picking a toll manufacturer that also manufacturers for your competitor. Instead of focusing on who the manufacturer also manufactures for, focus on what makes them capable to produce your product. In the long run, you are looking for a quality product. If the manufacturer can produce your quality product at a good price, don’t worry about who else they are manufacturing for.
3. If a toll manufacturer has a great presentation or sales pitch, they are the best choice
This one might be fairly obvious, but many people still believe this myth. It is false; you should always look beyond the sales pitch when choosing a toll manufacturer. Talk to the operations department; research the company on your own terms. You need the whole picture, not just what the sales person is telling you, when picking a contract manufacturer.
4. Larger toll manufacturing companies are the way to go
Sometimes the larger company is a good choice, but not always. Many people believe that larger companies can produce their product at a lower value-added margin; when in fact this isn’t always true. Do your research to find out and to pick the best manufacturer.
5. Choose the right toll manufacturer, and everything will be perfect
As much as everyone would like for this to be true, nothing is perfect. It takes a lot of work for everything to run smoothly. One of the best pieces of advice is for you to structure your organization to help effectively manage the manufacturer you are using.
There you have it, the top 5 things you need to know about toll manufacturing. When picking your toll manufacturer think about these myths and what is actually true. You’ll be sure to pick the best manufacturer for your product.