Toll processors, or toll manufacturers, custom manufacturers and contract processors as they are often called, provide materials processing and manufacturing services for the provision of goods and products.
Manufacturers may not possess the equipment or facilities necessary to perform required operations on raw materials. In this instance, a toll manufacturer is contracted to process material on behalf of the original manufacturer. The processor is paid a fee or “toll” for the customized mixing, milling and blending services rendered.
Benefits of Toll Processors
Toll manufacturers have a wide range of capabilities available to customers. The services rendered are dependent on the needs of the individual customer and nature of the product being manufactured. Processing can include the complete fabrication of goods from raw materials to a finished product or be limited to a single step in the production cycle. Additional services including packaging, labeling, shipping and storage of raw materials and products may also be offered.
Raw materials are provided by the customer or purchased by the toll manufacturer for use in processing. Companies involved in toll production tend to have established relationships with suppliers and are able to obtain required raw materials at a discounted rate.
Long-term contracts are usually involved, which prove to be mutually beneficial to both parties as the processor is guaranteed a specified amount of work and the customer secures an ongoing volume-based rate at the current market value. Confidentiality agreements between a “toller” and customer are generally used to protect formulation and intellectual property.
Manufacturers lacking internal resources and those who are unable or unwilling to make a capital investment in specialized equipment and processes can utilize the services of a contract processor to manufacture products on their behalf. Already equipped with dedicated machinery, knowledge of processes and other resources necessary to fulfill production requirements, toll processors have the facilities and experience required to manufacture products to a customer’s specifications. In many cases, outsourcing the manufacture of goods is often more cost effective than in-house production.
A common practice with various industries, the outsourcing of materials processing offers a variety of benefits over in-house production including:
- Reduced production costs
- No capital investment required
- Enhanced efficiency and profitability
- No downtime due to equipment repairs or maintenance
- Adjustable production volumes based on demand
- No additional floor space or facility expansion required
- Short production cycles
- Fulfillment of regulatory requirements and permits
- Documentation of processes provided
- Product development, quality analysis and technical support available
Custom Milling & Consulting, Inc. offers toll manufacturing and contract processing services for the custom mixing, milling and blending of various wet milling applications including paints, inks, coatings, colorants, dyes, adhesives, sealants, ceramics, electronic materials, cosmetics, pharmaceuticals, agricultural chemicals and other specialty chemicals. The company manufactures a complete line of dispersion and process equipment for particle size reduction including horizontal media mills, submersion type basket mills, planetary mixers and ram discharge presses. Whether introducing a new product or filling a production shortfall, CMC has the capabilities to handle .5L pilot size projects still in development to full-scale production size batches up to 2,000 gallons.
A proven leader in dispersion technology, Custom Milling & Consulting, Inc. has more than 25 years of process experience to satisfy your production needs.