The Best Toll Manufacturing Company: What To Expect

If you’re going to work with a toll manufacturing company, you should work with the best toll manufacturing company. But before you can identify that, you need to know what a toll manufacturer covers in the first place. Conversion Technologies International has you covered. Read below to learn more!

What’s the difference between manufacturing and toll manufacturing?

Manufacturing is the basic process of creating and refining products. In an industrial context, it typically involves heavy-duty equipment and large-scale facilities. Orders, or production runs, can involve thousands of items. However, this isn’t always the case. Some manufacture products in smaller batches, especially when their businesses are young. While many small businesses begin by manufacturing products in-house, this becomes more difficult as your company grows. Maintaining in-house manufacturing means investing in more complex, expensive equipment, and hiring more employees. You’ll also have to consider securing facilities and training operators.

Fortunately, third-party options do exist—even for manufacturing. While you might be a little hesitant to outsource at first, there are many benefits to doing so. When you outsource manufacturing, you’re able to save on investing in equipment, employees, and facilities. Additionally, you don’t have to worry about the trial and error that comes with learning new processes as a company.

Toll manufacturing is one type of third party manufacturing—not the only kind. It relies on paying a “toll” in exchange for processing and manufacturing. What it doesn’t cover is the raw materials. You provide those. The third party delivers the final product to the agreed upon specifications, and you’re all set!

Some business owners prefer toll manufacturing because they prefer a certain type of raw materials. You might have a preferred provider, or a financial arrangement that works to your advantage. No matter what the reason, toll manufacturing allows you to maintain that extra bit of control. The best toll manufacturing company will keep you in the loop while handling all the processes you need.

What are the benefits of working with the best toll manufacturing company?

The benefits of toll manufacturing are manifold.

• It’s scalable. One of the main reasons why business owners like you choose to outsource in the first place is scalability. As your business grows, the demand for your products and services will grow as well. That means you’ll need to provide more. Orders you were once able to fulfill on a small scale may become more challenging as demand increases. Toll manufacturing allows you to respond to that demand faster, and in a more streamlined fashion. You won’t miss out on your growing customer base. Instead, you’ll rise to meet them.
• It’s customizable. One of the main reasons why small business owners get nervous about third party manufacturing is customization. It’s easy to understand why. Can you customize your products without direct involvement? The answer is yes. When you work with the best toll manufacturing company, you absolutely can. We’ll listen to you and work to accommodate your business’s needs. In fact, CTI offers initial consultations before you even get to the finer details of production.
• It’s fast and efficient. The reality is that as your business grows, speed will become more and more important. If you cut corners, that can mean sacrificing quality. But if you’re working with the best toll manufacturing company, you don’t have to worry about that. We have the experience. We have the expertise. We know how to produce quickly, without sacrificing quality.
• It saves you time. We just said it was fast—but this is something different. When you work with a toll manufacturing company, you don’t have to worry about the details yourself. You get that time back, and you’re able to focus on other aspects of your business.

These benefits, on top of others, make toll manufacturing an easy win.

What’s the alternative to toll manufacturing?

The main alternative to toll manufacturing is contract manufacturing. Contract manufacturing is another form of third party manufacturing. However, in this case you don’t supply the raw materials. You sign a contract at the beginning of the project, agreeing to the terms. And the third party takes it from there. You’re more hands off, and the process is more under the third party’s control.

There isn’t a right or wrong option. In fact, some third party manufacturers offer their clients both contract manufacturing and toll manufacturing options. What’s important is that you assess your needs and discuss them with any potential manufacturer before making a final decision. If you want to simply turn in your terms and let the manufacturer take it from there, consider contract manufacturing. If you have a particular provider of raw materials in mind, consider toll manufacturing.

What should I do next?

We recommend talking to a third party manufacturer directly. Even if you’re not sure about your next moves, discussing your plans will help you develop a realistic course of action. That’s where CTI comes in! We’re used to working with a variety of cases. Check out this story about a client of ours who needed the first pre-applied adhesive fabric for automotive headliners!

Reach out to us here or call 419-924-5566 to get an idea of what a third party can do for you—and which option is right for your business.