Difference between Toll Manufacturing and Contract Manufacturing

If you are looking for the differences between toll manufacturing and contract manufacturing, you will find various definitions and differences. But not infrequently also say the meaning of the two terms are the same.

So, just make it simple. Suppose you have a business that is engaged in cosmetics, manufacturing and selling facial care products.

You have raw materials, research and development team, production team as well as production equipment and product design team. Your research development team starts testing raw materials to be used as cosmetic and facial care products.

The production team with its production equipment began to mass produce these cosmetics and facial treatments. After that, the product design team began to design the right packaging for cosmetic and facial care products according to the raw materials.

Your marketing team starts marketing products to beauty shops, pharmacies, convenient stores, and even creates product catalogs to be distributed to resellers.

One day you get a call from a big retail company to manufacture cosmetic products. The retail company does not have raw materials, research and development teams and production equipment.

Retail companies love the design and variety of products you make using one basic ingredient. For example, seaweed, from seaweed can be produced into facial creams, face masks, facial washes to facial cleansers.

Your company can offer various types of products with seaweed-based ingredients supported by a research and development team and technology in your production equipment that will maximize your production results.

Large industries have started to use toll manufacturing services to produce a series of products. You do not need to buy production equipment, hire human resources with special skills, which in the end reduces costs.

Collaborating with toll manufacturing Indonesia on the other hand will speed up the production of your product. Toll manufacturing will usually produce goods in large quantities, for that you don't have to worry that you will run out of stock.

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