How Can Toll Manufacturing Streamline Production? A Comprehensive Guide

January 09, 2024

toll manufacturing, outsourcing, third-party production, cost-efficient, manufacturing process, contract manufacturing, production efficiency, raw materials, skilled labor, Anglo Adhesives, quality assurance, custom solutions, innovation, reliability

Toll manufacturing, or tolling, is outsourcing all the production or part of it to a third-party company, where you provide all the raw materials or semi-finished products.

The work of the third-party company is to process the products or raw materials to the required specification. Full-toll manufacturers often offer warehousing and shipping services.

The manufacturer receives a fee or toll, a flat fee agreed upon before the commencement of processing. They are only responsible for the final product’s quality as far as the processing is concerned. The source company is responsible for the quality of the materials and the vendors. Here at Anglo Adhesives, we ensure the toll manufacturing process is transparent at the component and material levels.

The main reason for toll manufacturing is to utilise specialised equipment, labour, or technicalities in the production process. Sometimes you may have to divulge trade secrets and know-how to the toll company about your product.


Advantages of Toll Manufacturing

Toll manufacturing, simply put, is the arrangement where one company processes materials for another.

Outsourcing your manufacturing process or part of it to a reputable company is a cost-efficient way to produce your product or raw materials. It would help if you had a partner with specialised equipment, organisational systems, and skilled labour already in place.

When you outsource, you do not have to worry about manufacturing dilemmas facing many companies—for instance, lack of capital investments, operating models, and sometimes how to manufacture, among others.

In addition, the toll manufacturer has experience in processing different products. Since they work for different companies across various industries, they can help you overcome challenges in the processing and formulating of your products.


Contract Manufacturing vs. Toll Manufacturing

Contract and toll manufacturing are sometimes confused with each other.

Contract manufacturing is another way of outsourcing production. But here, the third-party company is responsible for sourcing the materials and manufacturing.

It will oversee the process from beginning to end, ensuring the final product is according to the provided specifications. A company can outsource the production of the whole product or part of it. The fee to be paid is pre-agreed beforehand.

Contract manufacturing is a fast and effective way of making branded or custom-made products without engaging in production. Companies can produce products overseas without needing to set up expensive factories or buy special equipment.


Benefits of Toll Manufacturing

  • You reduce labour costs: In today’s labour market, skilled workers are in high mand. You hire skilled workers from the toll company for a fraction of the fee it would take to hire them.
  • Control over the quality and cost of raw materials remains with you. Since you source the raw materials, you decide where to buy them and negotiate deals with your suppliers.
  • It gives you production convenience, especially for chemical toll manufacturing. Chemical toll manufacturing companies are usually certified or permitted to produce chemicals and have the necessary equipment. They will handle large volumes for you, and you don’t need to go through strict certification processes.
  • On-demand capabilities allow you to seek services on a need basis. Instead of investing in equipment, you can approach a toll company for special projects and product testing.
  • Save on capital equipment: Eliminate capital investments such as special equipment, production lines, and a workforce.
    Handling raw materials is taken care of by the toll company. The toll company can handle the sensitive raw materials from the source, eliminating the chances of contamination.
  • They charge a flat fee. The company will not change the toll because it is predetermined whether your product sells for more.
    Increased production efficiency as the toll company specialises in processing: They already have systems to ensure optimum efficiency.
  • The toll companies offer customisation. Even when you can’t invest in the processes and equipment, they offer customised products, whether in the packaging or product formulation.

Why Choose Anglo Adhesives as Your Toll Manufacturer?

Anglo Adhesives stands out as an excellent choice for toll manufacturing services. Renowned for our commitment to quality, innovation, and reliability, Anglo Adhesives boasts a diverse portfolio of cutting-edge adhesive formulations suitable for a wide range of applications.

With state-of-the-art manufacturing facilities and a team of skilled professionals, we offer comprehensive toll manufacturing services, ensuring seamless production processes and customised solutions tailored to meet the unique requirements of our clients.

More blog posts