World Executive Digest | Benefits of Toll Manufacturing | Have you ever wondered how products are easily processed and delivered to the market? Toll manufacturing is the answer. Different companies in our society utilize toll manufacturing in their daily manufacturing routine. Food and Beverage, Electronics, and other types of businesses nowadays all make effective use of the toll manufacturing process.
So what is toll manufacturing? Toll manufacturing is a service provided by another company that specializes in producing large or small scale blends for other companies that want to make a product without having to invest in special equipment. One company provides raw materials to a third-party who then provides the rest of the services such as manufacturing. This is similar to contract manufacturing with the only difference being that the third-party both supplies the manufacturing process and sources all the raw materials.
Toll manufacturing is becoming more and more common because it gives companies a wide range of cost-effective options that might not be possible if they did everything in-house. One of the well-known toll manufacturing companies for food and beverages in the Philippines Glorious Industrial and Development Corporation (GIDC Philippines).
GIDC Philippines specializes in manufacturing food and beverages for companies that want to make use of a healthy sugar substitute. This substitute is known as Stevia. Stevia is a natural sweetener made from leaves of a plant related to asters and chrysanthemums. The benefits of stevia are that it is organic, calorie-free, carbohydrate-free, and has a glycemic index of zero. Similarly, the toll manufacturing service they provide has benefits as well.
The Top 8 Benefits of Toll Manufacturing
No Capital Investment
One of the reasons why companies choose toll manufacturing is because they want to avoid unwanted capital investment. In other words, toll manufacturing can help save money. Who doesn’t like that? With toll manufacturing, you don’t have to invest money into specialized equipment, manpower, or space to accommodate production. The toll manufacturer already has all of these things. It will give you the freedom to use your money in other things including investing in new products that can help your company grow.
Raw materials, also known as feedstock, are the basic materials that is used to produce goods or create a finished product. With toll manufacturing, the manufacturer can purchase and store raw materials for you. This can help you simplify the manufacturing process. At the same time, it helps you save money. The materials or ingredients can be also be supplied by the emerging company in order to control the sourcing quality of your raw materials.
One of the best benefits of toll manufacturing is customization. Toll manufacturers understand that different companies want different outputs, so they are prepared to cater to customized formats and packaging options. This ability to customize is great if you are looking for something specific, especially if you do not want to spend the time and money making your product yourself.
Some of the businesses here in the Philippines have a problem storing their products, and that is exactly why toll manufacturing might be the best for your business. Toll manufacturers can store your end product, saving you space. Some of the toll manufacturers can coordinate on-site storage, off-site warehousing, and even the final delivery of your product. Because of this, the stress for your storage and delivery will be taken off your hands.
The Flat Fee, also known as a flat rate or a linear rate, refers to a pricing structure that charges a single fixed fee for a service, regardless of usage. The toll manufacturing flat fee is another way toll manufacturing can save you money. No matter how much you increase production, the cost won’t.
An amazing benefit of toll manufacturing is the quality products that they can produce because products are not manufactured by the company itself. Toll manufactures have to do a good job in production if they want to stay in business, and that is why they are highly skilled and experts in production activities. This means that they are more efficient and can produce high-quality products at lower costs. This lets companies focus on other factors like strategic and future planning which will help them grow.
More Focus on Selling Activities
Toll manufacturers help companies by paying attention to the functional areas. Selling products is an important aspect of businesses, especially for SME’s that have to overcome competition in order to survive. Companies, by outsourcing its production activities, have more time to focus on activities like marketing and sales.
Easy Entry in Markets
There are various trade barriers in many countries that make it difficult to do business there. Companies cannot just enter and sell their products abroad. With toll manufacturing, it becomes easy for companies to enter into different countries. By using a toll manufacturer, It will be easier to enter different markets in different countries because you can source products within the region you wish to enter.
If you have a food and beverage business here in the Philippines, you might want to consider the Glorious Industrial and Development Corporation to toll manufacture your products. They are the best toll manufacturer of stevia in the Philippines. With GIDC, the food and beverage products you deliver to your customers will be healthier than ever. To learn more, visit GIDC Philippines.