Toll Blending FAQs
If you’re new to the toll blending industry, or looking for more information on outsourcing your manufacturing, the following frequently asked questions may help. The Royal Chemical team is also here to provide answers and assist in your decision-making process.
What is toll blending?
Toll blending, also referred to as contract manufacturing, occurs when a manufacturer outsources any or all parts of production to a third-party company for a fee, or “toll.” Confidentiality agreements ensure the manufacturer’s work is handled with respect and formulas are not shared outside of the toll blending agreement.
Toll blending is becoming increasingly common, especially in the chemical industry where complex formulas and high costs have created space for specialized companies to handle production.
What does a toll blender do?
Toll blender facilities range in terms of services provided, but options can include
- Mixing and production
- Packaging
- Quality assurance
- Delivery
- Warehousing & fulfillment
- Intellectual property handling and assistance
Services provided depend on the agreement with the toll blender and can be turnkey, where all services are provided from start to finish, or selective, where customers pick and choose the services they wish to outsource.
Why do companies need toll blending services?
There are several key reasons why companies usually decide to outsource their manufacturing. They can include, but are not limited to:
- Capacity: Perhaps the biggest reason for partnering with a toll blender, companies sometimes simply need extra equipment, space or resources to expand production. Whether permanent or temporary, a toll blender can provide that extra space at a lower cost.
- Growth: Companies looking to grow can use toll blending as a tool to handle increased production while their sales and marketing teams focus on expansion to new audiences or technologies.
- Costs: The cost of partnering with a toll blender is usually minimal in comparison to investing in owned space, equipment and resources to ramp up production.
- Seasonality: Some companies produce certain products seasonally and may not possess the capability to blend year-round.
What are the benefits of toll blending?
There are many, many benefits of toll blending. We could fill a book, but here are some of the biggest, high-level benefits our customers value:
Many chemicals require expensive, specialty equipment not found in the average facility. Specialty equipment is also very expensive. A toll blender lets you use specialized equipment in your manufacturing process without having to pay for the new machine yourself.
Expanding your product line or geographical reach requires increased production capacity. Working with a toll blender gives you access to a secondary facility and, as is the case with Royal Chemical, multiple production locations.
Different types of chemicals have different packaging requirements. A knowledgeable toll blender will help you determine the best solution for your needs, then provide that packaging service for your end product.
Complying with regulations, especially for hazardous chemicals, can be tricky, as there are many directives that must be followed in order to avoid fines and keep employees safe. Experienced toll blenders are well-versed in up-to-date regulations around production, labeling and transportation, meaning you don’t have to worry about compliance. This can be especially helpful if you plan to ship internationally, as different countries have different regulations that can be difficult to keep track of.
As we have alluded to, one of the biggest advantages of working with a toll blender is the ultimate cost savings. Chemical processing equipment is expensive, as is the labor needed to bring a product to market. It’s a smart business decision to pay a toll blender to increase your capacity rather than investing in specialty equipment, shipping logistics, new packaging and the space and labor for increased production.
A good toll blender is experienced in precise formulation and consistency quality in cooperation with ISO 9001, ISO 14001, REACH and other standards. With a great partner, you can be assured your formulations are being made on time and within your manufacturing specifications.
- Other benefits of toll blending
There are many other benefits in outsourcing your chemical manufacturing, including technical support, formula customization, flexibility and, sometimes most important, a partner who believes in your success and has the knowledge and know-how to answer your questions.
Partnering with a Toll Blender
Questions? Royal Chemical offers free, no-obligation consultations that take a customized approach to find the best solution for your business' unique needs.
