Toll manufacturing & contract manufacturing are two relatively similar forms of supply chain management that are often misunderstood & confused. While both of these manufacturing options have distinct & clear characteristics, their most strategic advantage is their ability to lớn provide customers with valuable ways to lớn save sầu both time and capital on their sản phẩm line development.

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On-Demand Service

In many ways, contract & toll manufacturing are similar to other on-dem& services like Uber, Seamless, & HBO Go. They allow Sierra Coating to provide laminating or coating services on dem& & as needed, as part of a “sharing economy” Mã Sản Phẩm that is beneficial for both the customer and the manufacturer.

“Sierra has delivered us a quality hàng hóa for years, on time all the time. If there is any kind of an issue they always get right on it.”

Brian, Company is a 10-year customer

Below, we will highlight the advantages và distinctions between toll & contract manufacturing khổng lồ help you make the best decision for your company.

What is Toll Manufacturing?

In toll manufacturing, one company provides raw materials (or semi-finished goods) to lớn a third-buổi tiệc nhỏ, who will then provide the rest of the services (manufacturing). Typically, the third-buổi tiệc ngọt company will already have sầu particular equipment và organizational models in place, và they can supply subclasses of manufacturing processes for the first company for a fee – or toll.

As a toll manufacturer, Sierra Coating can provide customers with a facility và manufacturing equipment khổng lồ process their raw materials or semi-finished products. Because of this, the customer only has a variable cost of manufacturing without the financial investment in equipment, facilities, và employees. With toll manufacturing, the customer is equipped with the resources to lớn develop their own specialty coatings or papers that Sierra Coating can use in the manufacturing process. Subsequently, the customer is able lớn develop the exact sản phẩm they envision, without the time và capital investment of building a manufacturing operation. This significantly decreases the time required lớn get the hàng hóa khổng lồ market, as lead times for ordering và installing new machinery are eliminated.

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At Sierra Coating, customers are able khổng lồ supply one or more of the raw materials needed for production or, if the customer prefers, the Sierra Coating team can supply the materials.

Key Differences with Contract Manufacturing

Though contract manufacturing is similar to lớn toll manufacturing, there are some key differences between the two. Similar to toll manufacturing, contract manufacturing involves outsourcing production processes khổng lồ a third-party company. In contract manufacturing, however, the third-buổi tiệc nhỏ company hired khổng lồ produce the goods is supplying the manufacturing process as well as sourcing all of the raw materials. Contract manufacturing is creating a supply chain vendor for a branded, private label or custom-made sản phẩm. The contract manufacturer is responsible for making the product lớn specification & meeting the delivery time requirements. This offers the customer a fast & effective sầu method of extending their product line with minimal investment và a made-to-order supply program.

Helpful Resources

Sierra Coating is a leader in coating and laminating services, with over twenty years of experience providing our customers with both toll and contract manufacturing services. To learn more about the differences between toll and contract manufacturing as well as other popular paper industry terms, download our không tính phí guide, Commonly Misused Terms within the Paper Industry.

If you have sầu any questions about how Sierra Coating can help with your next toll and/or contract manufacturing project, tương tác us today.

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