A toll processing agreement is a contract between two parties in which a toll milling service provider, contract processor or “toller” agrees to manufacture a customer’s product for an agreed upon fee or “toll”.
The mutually beneficial agreement provides cost-effective manufacturing services to the customer while securing a long-term, revenue producing contract for the toll service provider.
Agreements vary based on the level of production and specific needs of the customer.
Tollers can be contracted to oversee the complete manufacture of a product from the acquisition of raw materials and manufacture of products to packaging and delivery to the end user. Companies also have the ability to outsource solely the production of customer-supplied materials.
Customers supply their formula to the manufacturer who produces products to their specifications. The toll contract ensures confidentiality and protection of intellectual property. It is not uncommon for customers to invest in facilities, machinery or technology in order to properly equip a toller for a specific project. Whatever the need, toll milling service providers such as Custom Milling & Consulting, Inc. have the capabilities and expertise to get the job done.
Toll processing agreements can include:
- Products and services
- Quality plan and process documentation
- Default and liability clauses
- Force Majeure excluding either party from responsibility due to acts of God, war, fire, strike, riot, fire, loss of utilities (electricity, water, gas, etc.), or anything beyond either parties control
Having a manufacturing contract ensures:
- Processing expertise involving difficult or hazardous chemistries
- Compliance with mandated regulatory permits
- Reduced production costs
- Shorter production cycles
- Flexibility to adjust production requirements based on demand
- Particle size reduction and feasibility analysis
- No unscheduled downtime or production interruptions due to emergency maintenance of equipment
Services offered by Custom Milling and Consulting:
- Custom Materials Processing
- Particle size reduction
- Toll Milling
- Toll Blending
- Toll Grinding
- Quality Control Testing
- Packaging and labeling
- Transportation and delivery
- Laboratory and technical support for research and process development
Contract management on both sides will ensure the proper manufacturing processes are followed, manage inventory of raw materials and finished products and supervise customer service.
CMC’s Quality Assurance Manager will audit the project to ensure that in compliance with the agreed upon contract. Field technicians will provide customer assistance and work closely with the project manager. All of the components and people work together to ensure the project is done correctly, on time and within the budget. Accountability is necessary, especially with large-scale production projects, to ensure efficiency and proper execution of productivity and fulfillment of customer needs.
In addition to providing contract toll milling service, Custom Milling & Consulting, Inc. offers a full line of process equipment for particle size reduction.
Using the latest in media mill technology, our equipment and services provide the perfect solution for your dispersion needs and any product quality issues caused by the agglomeration. CMC provides mixing, blending, grinding and compounding toll services for the automotive, specialty chemicals and pharmaceutical industries, and for a diverse variety of products including ceramics, dyes, colorants, inks, paints, coatings and nanomaterials.