Similar to toll manufacturing, contract manufacturing involves outsourcing production processes to a third-party company. In contract manufacturing, however, the third-party company hired to produce the goods is supplying the manufacturing process as well as sourcing all of the raw materials.
A key buzz word in the business world for years has been outsourcing, and specifically the upsides and downsides of it for both companies and countries.
Learn the differences between toll manufacturing vs contract manufacturing courtesy of Custom Milling & Consulting. Call today to speak about your materials processing / toll processing needs on (610) 926-0984.
What Is a "toll Manufacturing Agreement"? ... A company that performs the service charges a fee, otherwise known as a toll, for completing the project. Toll manufacturing usually manifests into a long-term agreement between both parties. Toll processing companies may also serve as consultants in addition to performing services.
Toll processing is also commonly referred to as contract processing, tolling, toll milling, toll conversion, toll manufacturing, or custom manufacturing. It is a process that can be defined as performing a specific service on the product of a client.
A "toller" is a processor who charges a fee ("toll") for processing raw materials. The ownership of the materials generally stays with the supplier, who simply pays the toller to process them and then keeps the finished product.
The FEECO Toll Processing Facility. The FEECO Tolling Center is a state-of-the-art facility, staffed with operators experienced in product and process development, quality control, and more. With over 65 years of material processing experience, we have the unique advantage of familiarity with hundreds of materials.
Toll manufacturing can be simply defined as an arrangement, where a company with specialised equipment processes raw materials or unfinished goods for a different company. If you haven’t heard of this before, you might have come across toll processing, which is the exact same thing, only a different name.
Definition of TOLL MANUFACTURING: Arrangement where a company will process raw materials or partly completed goods for another company. Also known as toll processing.
tolling (“ charging a fee ”) + agreement. Noun . tolling agreement (plural tolling agreements) An agreement by a toller with an owner of raw materials to process the raw material for a specified fee ("toll") into a product with the raw material and the product remaining the property of the provider of the raw material.