Support for Tolling and Outsourced Manufacturing
Regardless of which outsourced production process you choose, having automated and real-time visibility from beginning to end gives you the ability to not only optimize your process to meet demand, but also to build strategic plans based on minute information.
Top Customer Challenges:
Toll Manufacturing and Contract Manufacturing are commonly used options for outsourcing manufacturing. While the terms are often used interchangeably, they each represent a distinctly different process.
- We currently track our outsourced production by paper
- We waste hours reentering data coming and going
- I have no idea what materials are on hand at the outsource facility
In toll manufacturing, one company sends raw materials or partly-finished goods to a third-party toll processing company who has the equipment and expertise necessary to finish the product in exchange for a fee or “toll.”
Contract manufacturing also involves outsourcing manufacturing, but in these arrangements, the contracted manufacturers will source the raw materials needed for production and will generally have control over vendor selection and quality management.
Both toll and contract manufacturing allow companies to respond to customer demands faster and eliminate any immediate need for overhead investments in equipment, facilities, and experienced labor, but each also has its own unique advantages and disadvantages.
