What is Toll Blending/Custom Manufacturing?
Toll blending or custom manufacturing is the process in which a company blends and packages your products. The toll manufacturer utilizes your formula and packaging specifications, and then prepares for final shipment. In some cases, the toll blending manufacturer will also drop ship the products.
What are the advantages of Toll Blend Manufacturing?
More Production Time: By allowing someone else to manufacture your products, you free up your production team. This allows them more time to focus on other aspects of the business.
When In Crisis: Additionally, taking advantage of toll blending services could help you out in times of high demand or crisis. When your production process is delayed, having a custom manufacturer available could get you out of a bind. There are many instances in which a loss of production time could occur:
- Short staffed
- Emergencies such as power outages, fire or water damage causing a plant shutdown, illnesses that cause temporary shutdowns or disruptions in work force
- Large orders that consume labor hours; exceeding your production capabilities
- Equipment break downs
- Planned maintenance shutdowns
Reduce Costs: In some instances, using toll blending services may help reduce overhead. This could be especially true for more labor intensive processes or for products that require purchasing of additional equipment or facilities.
Location: Rather than opening a plant in a new, you may consider working with a toll manufacturer to produce and ship the products for you. This can help you easily expand into new locations.
Seasonal Production Needs: Some products offered, may be seasonal products that are only sold during certain times of the years. In this case, choosing to outsource these products may help you to eliminate fluctuations in manufacturing expenses.
What to Consider when Choosing a Toll Manufacturer?
When choosing a manufacturer to toll blend your products, there are many factors to consider.
Confidentiality: You want to choose someone you can trust with your formulas. You should look for a reliable company who has experience in handling the toll process confidentially and is willing to sign a confidentiality agreement.
Quality Control: In addition to confidentiality, the quality production of your product is important. Discuss the quality control procedures with the manufacturer to ensure they have a stringent QA process.
Access to Raw Materials: The manufacturer you choose should have many relationships in the supply chain. It is a good idea to work with a manufacturer who has contacts that can obtain hard to find materials. It is also in your best interest to find a manufacturer who buys in large volumes to ensure the best pricing. Additionally, the manufacturer should have the knowledge necessary to choose suitable offsets if a raw material is unavailable.
Private Labeling/Custom Packaging: Many manufacturers also offer private label and custom packaging services. If you will require products packaged to your specification, be sure to review this with the manufacturer.
Drop Shipment Capabilities: You may also need to have your products shipped directly to your clients. If this is a case, be sure to work with a manufacturer who has experience in blind shipments and the capabilities to ship to multiple locations in a timely manner.
NPI provides private label and custom manufacturing for a wide range of specialty coating and adhesive products. We have over thirty years of experience, handling over 700 customers in total confidentially, with manufacturing capabilities to handle truckload or single unit needs. For more information about our toll blending/custom manufacturing services contact us at 800-831-5600.