A question we get asked a lot at Syntor Fine Chemicals is exactly the one above, and although people may think they’re similar, there are a few major differences that can separate the two.
We’ll put the following in Layman’s terms, helping you hopefully by the end have a better understanding of the differences, and what may be most beneficial to your company or business.
To put it simply, what are the differences?
For custom toll manufacturing, a company will send either their raw materials or partly completed products to a 3rd party manufacturer, who will then complete the product for a few products.
Contract manufacturing works in a very similar way, however, you are leaving the chosen manufacturer to source the raw materials to.
Custom Toll Manufacturing – the good and the bad…
There are many advantages to custom toll manufacturing, such as being able to control the quality and cost of the materials you provide.
You also know there won’t be any unexpected costs, with the outsourced company charging a set fee per item usually.
Another benefit of outsourcing is that more than likely your product will come back complete with packaging and labelling – ready to sell the minute it returns.
There is a negative to this method, however, due to the need to provide the raw materials yourself; you’ll have to pay to get them shipped to the manufacturer, something that can prove extremely expensive especially if that company is overseas.
Contract Manufacturing – the good and the bad…
A popular choice for companies who may not have the warehouse or production space themselves, or simply have a product that can be outsourced fully.
In essence, you have the master plan and product, but another manufacturer is making it for you from scratch.
By doing so, you miss out on any of the shipping costs that custom toll manufacturing occurs, beating the middle man.
However, leaving everything to a contract manufacturer can have a few downsides.
You’re effectively handing over your whole product to someone else, if you haven’t worked with them in the past then there’s no saying you’ll be happy with the finished article. They could leave you with something substandard, or perhaps nothing at all.
If you have built up a longstanding relationship then the above point won’t matter, but you may not have total control of costs, as someone else is doing all the buying for you.
We know how difficult the two types can be to find, but not here at Syntor Fine Chemicals. Our production sites in India and China are well respected and have benefitted from training and support from our UK personnel.
Our Contract Manufacturing and Custom Toll Manufacturing services are always evolving, as we aim to be one of the world’s go-to companies.
We believe what separates us from the rest is a personal service like no other. We get to know your company first and assist at every single stage of the process.
Our suppliers deliver time and time again with excellent products, and our track record is second to none, you only have to speak to any of our current and past clients.