Home > contract manufacturing > What a Toll Manufacturing Agreement Can Do for Your Business

toll manufacturing agreementIn today’s economy, businesses don’t just need manufacturing capacity—they need flexible manufacturing capacity. That’s why many businesses choose to enter a toll manufacturing agreement with a toll and/or contract manufacturer. 

Toll manufacturing agreements are contracts that give businesses access to third party manufacturing capacity when and where they need it. Today, let’s talk about how a toll manufacturing agreement works, and how Conversion Technologies International can fill your manufacturing needs.

The Basics of Toll Manufacturing

Sometimes, a business has raw materials or partially finished goods but lacks the capacity to turn them into finished products. In such cases, businesses often seek out a toll manufacturer to perform the required manufacturing processes. 

Toll manufacturing, also called toll processing, can involve numerous different services. Most of these services fall under the umbrella of conversion manufacturing. That means that they take raw materials or unfinished products and convert them, through various means, into finished goods. 

Often, it’s more cost-effective for businesses to use a toll manufacturer than to perform the conversion process in-house. Quality toll manufacturers offer manufacturing capacity on demand and with expert guidance. That helps free up labor and capital resources for other areas, which can be particularly helpful for smaller businesses.

Toll Manufacturing vs. Contract Manufacturing

You might also hear the term “contract manufacturing” used in similar contexts as toll manufacturing. Contract manufacturing and toll manufacturing are similar, but they have one big difference.

The main distinction between the two is that contract manufacturing outsources the entire end-to-end manufacturing process. In a contract manufacturing agreement, the third party manufacturer will also handle tasks such as sourcing raw materials for the manufacturer. 

Both toll manufacturing and contract manufacturing can be good choices for businesses that need manufacturing services. Toll processing is often a better choice for businesses with a well established supply chain and a robust supplier network. In contrast, contract manufacturing is a popular choice for manufacturers who need to outsource their entire supply chain process.

How An Agreement Works

So, how does a toll manufacturing agreement work in practice? Here’s how it works with CTI.

The first step to creating a toll manufacturing agreement is an initial meeting between CTI and your business. We’ll talk about the services that your project requires and ensure that our offerings fit your needs.

At this point, we’ll also provide your business with a quote for the cost of the toll manufacturing agreement. Because of the variety of different goods made and processes used, no two contracts are the same. Some of the most important factors that influence the cost include:

  • Materials used
  • Processes and equipment required
  • Length of production run

Once you’ve received your quote, you’ll have the option to sign a toll manufacturing agreement with us. After signing, we’ll proceed with our five-step process, from R&D to pilot runs to full-scale production.

What to Look for in a Partner

When choosing a production partner, look for a company that boasts:

  • Experience
  • Custom-design and production capabilities
  • Versatility in materials and substrates
  • Extensive equipment/machinery
  • Reputation for excellence
  • Track record of success
  • Friendly, helpful team eager to help you meet your production schedule

CTI is a nationally recognized production company. We meet all industry standards set forth by organizations such as:

What Companies Use Toll Manufacturing?

Companies across virtually all industries use toll manufacturing. Some, but not all the industries, that partner with CTI are in the following fields:

  • Automotive
  • Aerospace
  • Construction
  • Consumer Products
  • Furniture
  • Marine
  • Medical Devices
  • Roofing and Textiles

Just a few of the household name companies that CTI has been fortunate to partner with include:

  • Clorox
  • DuPont
  • Firestone
  • Ford
  • Hanes
  • Henkel
  • Kimberly-Clark
  • Lear
  • Magna
  • Owens Corning
  • Sauder
  • Steelcase
  • Uniroyal
  • Valspar

Toll Manufacturing from CTI

CTI provides full-service toll manufacturing and contract manufacturing to our clients. Our extensive range of conversion manufacturing services includes:

We design our services to maximize the advantages that toll manufacturing offers. These include:

  1. Quality: We use a robust quality assurance process to verify that our output always meets client standards.
  2. Flexibility: Our modular facility design makes it easy to perform market testing, R&D, and iterative manufacturing process design.
  3. Convenience: Services are available on demand when your business needs them.
  4. Service: CTI’s manufacturing professionals guide our clients every step of the way.

Businesses can get started with a toll manufacturing quote from CTI today. Call us at 419-924-5566 or contact us online. Our conversion manufacturing experts will be happy to provide you with a free quote and walk you through the process.