What is toll manufacturing

This is a valuable part of the service, as the manufacturing company has specialized equipment and employees with professional skills who are able to create a greater product if given the freedom to obtain materials themselves.

This allows a company to supply specific materials they want to use but removes part of the quality control the manufacturer has over the final product, giving them only the ability to refine the production process rather than being able to pick out the best materials themselves. Skip to content. Toll Manufacturing vs.

Contract Manufacturing. Mar 22 Differences Between the Services The main difference between toll manufacturing and contract manufacturing is the acquisition of materials. Elcan Industries has a dedicated person on staff to handle any and all calls without any robots or machines. Whenever possible, we strongly urge our clients to come visit our plant. This is a very good idea because it will give you a full picture of what goes on inside the plant where your raw materials will likely be for an extended period of time during processing.

Prior to a plant visit, we offer our clients a feasibility test where we go over their needs and what their overall goals and expectations are. We take a full day plant tour and run numerous tests and scenarios for our potential client until we get their end product down to the exact quality and spec they are looking for.

You want to make sure you leave the plant with detailed specifications, particle size, moisture content, percentage yields, oversize and undersized, bulk density and more. At Elcan we run particle sizing tests right site on our state of the art Malvern.

Depending on the product being tested we also run tests for our potential client on our Elbow Jet Air Classifier as well! Elcan Industries offers companies the opportunity to develop new products using our advanced sieving systems. More specifically, Elcan can help companies achieve finer grades of product that were previously not obtainable by the client using standard sieving methods like air classifiers, ultrasonics and more.

Elcan Industries has 9 bays dedicated to toll sieving and has several truckload capacities at our new facility. Elcan offers lab and quality services as well to ensure that only the highest-grade product is being shipped out to customers. All the machines we use in our tolling facility are available for sale. This gives Elcan insight into methods that normal OEMs are not capable of achieving.

Call today to find out more about our toll processing services! About Press Partners. What is Toll Processing December 4, Topics: What is toll manufacturing? A company can use its spare capacity to good use by going for Toll manufacturing for some other Company.

As a result, it can earn more profits. This is the biggest disadvantage of toll manufacturing. The source company has to share its proprietary trade secrets with the manufacturing company to enable it to produce.

As a result, the manufacturing company may use it to its own advantage in the future. It can stand up as a competitor itself later on after learning the complex processes of production. It can even help a third company to set up a competitive unit and produce for it at a higher fee. It may face delays in set-up and production due to red-tape and bureaucratic delays. This may lead to delayed deliveries because of which the source company may suffer losses.

The source company might keep with itself the higher margin and easier processes for making a product. It may sub-let the more complex and lower-margin processes to the toll manufacturer. As a result, lesser lucrative and cumbersome processes will be left with it and this may not be advantageous to it. Toll manufacturing is very common with companies that are situated in high-cost regions.

They face the problems of expensive land and labor. Lower cost regions such as China, India, Thailand, Vietnam, Sri Lanka, and Bangladesh have played a major role in attracting Toll manufacturing contracts from across the globe. Cost of capital , set- up and land coupled with the skilled and inexpensive workforce has contributed to this shift in production processes. These countries also attract a lot of red-tape and bureaucratic delays while setting up and functioning of manufacturing facilities.

Therefore, companies should keep this in mind while giving Toll manufacturing contracts to these countries. When used strategically, such arrangements can create a win-win situation for both the source company and the manufacturing Company. We suggest reading the following to find out differences between toll vs.

Toll and Contract Manufacturing.