Toll blending is a manufacturing process where companies outsource the production of their products to a third party in order to gain a business advantage.
When demand is higher than expected or seasonal demand fluctuations occur, some companies may not have the capacity to produce a product in-house. Toll blending can help a company meet these spikes in demand without investing in additional equipment or hiring more staff.
Toll blending provides companies with flexibility, allowing the company to ramp up or decrease production without being tied to fixed output capabilities. This makes the outsourcing option cost-effective for small or medium-sized businesses that lack the equipment to make the products themselves.
Toll blending, also known as or contract blending or contract manufacturing, refers to manufacturing a product for a customer using the customer’s raw materials or ingredients.
The customer provides the ingredients and specifies the production process, and the toll blender carries out the production and transports on behalf of the customer to the packaging location. Allegheny typically deals in larger volumes and not direct-to-consumer packaging. A toll blender can do this for various products, such as chemicals, food, beverages, and personal care products.
Staying up-to-date on industry trends and consumer preferences can be challenging. Toll formulation can enhance your brand. It can ensure that your products meet your target market’s needs and wants, and keep you ahead of your competition.