It can be a difficult decision deciding whether or not to outsource steps in the manufacturing process. It relinquishes control over that part of the process and there’s always the concern it will end up being far more costly than trying to do everything in-house. However, when it comes to manufacturing specialty chemicals, you’ll always want to depend on chemical toll manufacturing to provide you a quality and safe product. If you need further convincing, here are the benefits of chemical toll manufacturing.
What Is Toll Manufacturing?
In the chemical industry, “tolling,” or contract manufacturing is simply the term used to describe outsourcing chemical manufacturing. Outsourcing chemical manufacturing can be and is typically done for many reasons, such as meeting strict deadlines, a lack of proper expertise or equipment, or as a cost-saving venture—all of which we will explore in greater detail later. However, under the agreement of toll manufacturing, a client company can supply all the necessary raw materials to produce a chemical, or in some cases provide a chemical they would like reverse engineered to decipher a formula and recreate specific needs.
Increased Efficiency
Toll manufacturing companies exist entirely to fulfill the various chemical production needs of client companies, and so they will have made the investment for specialized equipment that is necessary to expedite or fulfill niche chemical needs. Doing so will produce these chemicals in a timely manner in a higher quality form than the client company could typically produce on their own. Furthermore, because subcontracting is their business, all the hassle of the manufacturing and production processes are not on you.
Saves Space
It’s not only difficult but also incredibly costly to try and fit and maintain every single piece of chemical manufacturing equipment necessary to keep all production in-house. It’s so much easier, efficient, and cost-effective to instead ship the raw materials to a specialty manufacturing facility with the necessary equipment on hand to produce your specialty chemicals.
Labor Costs
In a similar vein, it’s not only costly to hire more personnel to fulfill both the daily operations of your facilities, but also to operate and produce all the chemicals by your own means. By using a toll manufacturer, you’re also renting their workers and all the expertise they’ve accrued working with specialty chemicals and the necessary equipment. Such expertise is an invaluable commodity that you can access directly rather than devoting time, money, and resources to training your own workers with the same expertise that will require practice and therefore potentially costly mistakes and errors.
Equipment Costs
As we’ve discussed, trying to fit in every single piece of equipment will require a lot of space, but it will also be a major expense for you to not only acquire and install but also regularly maintain it to ensure it is working at its best possible condition. Tolling manufacturers eliminate all such costs by being responsible for providing the equipment and machinery themselves, as well as the persistent costs that come with properly maintaining such industrial equipment.
Putting aside the equipment needed to simply produce the chemicals, you also need to provide the necessary personal protective equipment to your workers and be liable if a machine should end up harming one of them. Toll manufacturers take that liability and reduce it thanks to the specialty training and expertise of their own workers.
Quality Control
One of the greatest concerns that come with outsourcing to toll manufacturing is that you will lose control over the process and the final product. Rest assured that you will not be relinquishing control over your product. While toll manufacturers have the expertise and know the best practices for manufacturing chemicals, the client company retains control over what ingredients are used in the production process. This not only allows for cost-effective ingredient purchases that will fit the client’s budget, but also allows the client company to keep a watchful eye on the quality of ingredients used in production to give you greater peace of mind that you’ll be getting exactly what you asked for. Remember that these toll manufacturers have the selling point of creating very specialized chemicals that can be adjusted and altered to fit a client’s needs—your instructions won’t be just a suggestion.
Greater Results
One thing nicer than saving more money is making more money. Between your savings and the efficiency of a toll manufacturer, you are able to both direct more money into producing goods. Thus, the toll manufacturer’s expertise and focus on production mean you are receiving more of the desired product in a shorter amount of time and you can, in turn, produce and sell more of the final product. This means sales volumes increase and the client company can cultivate a larger customer base across a greater area if they can handle more demand.
Finding a Toll Manufacturing Partner
Now that you know the benefits of chemical toll manufacturing, how do you get a partnership with one of these manufacturers? You simply need to do your research into other chemical manufacturers, reach out to them to inquire about a toll manufacturing partnership, and investigate what their specialties and capabilities are. This investigation process is especially important if you have very niche needs for the specifications of your chemicals, as you have to make sure they have the equipment and knowledge to fulfill such specifications. If you have found a manufacturer offering an amicable partnership, you can then begin to detail a plan with them to ensure your expectations are met. Capital Resin Corporation has an especially long history of various projects that has cultivated a wide array of expertise, making us ideal to undertake your projects and manufacture your specialty chemicals.
