Understanding Manufacturing Processes: Tolling vs. Contract Manufacturing

What is Tolling?

Tolling is when a company sends its materials to a third party to be processed for a fee.

Key Features of Tolling

Materials: Client provides. Cost: Fee for processing. Control: Client controls the process.

What is Contract Manufacturing?

Contract manufacturing is when a third party handles the entire production, including materials.

Key Features of Contract Manufacturing

Materials: Manufacturer provides. Cost: Includes materials and labor. Control: Manufacturer controls the process.

Differences in Cost

Tolling: Lower cost, client provides materials. Contract Manufacturing: Higher cost, manufacturer provides materials and labor..

Differences in Control

Tolling: Client has more control. Contract Manufacturing: Manufacturer has more control.

When to Choose Tolling?

Best for companies with specific materials and production needs.

When to Choose Contract Manufacturing?

Best for companies wanting a full production service without investing in facilities.

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