What is a Toll Processing Company?

A close shot of a collection of steel coils in one of National Material’s steel processing facilities.

The convenience of outsourcing manufacturing work for products and services is becoming more and more popular. This method of contracting with a material processing service center is known as toll processing. (Also known as tolling, contract processing, toll manufacturing, or toll conversion.)

Businesses turn to toll processing because of the expertise and cost savings that the processing center provides. A growing business might lack the facilities, manpower, and time required to process the materials required for their products, leading to shortfalls in efficiency and delivery. Usually, processing centers have decades of experience in a number of different industries,  They have also made significant investments in equipment that can help take a project from concept to completion. Toll processors can offer the contracting company with important information, including difficulties or circumstances that might be encountered when processing specific types of material.

Benefits of toll processing

  • Significantly reduced capital investment
  • No additional permits required
  • No need for additional storage space
  • No need to hire additional employees
  • Can adjust production levels on-the-fly depending on demand
  • Faster time to completion
  • Opportunity to expand your network by working with experienced professionals
  • Avoid extended lead times
  • Affordable costs

Types of toll processing services

Toll processing companies, such as National Material Processing, can cover a wide range of services for their clients. This includes services such as slitting, configured blanking & stamping, cut-to-length processing, pickle & oil, galvanizing / galvannealing, product storage, shipping, , quality analysis, and more.

How to find the right toll processing company for you

When looking for a company to contract with, you should consider a few key factors. First, you should try to select a company that is reasonably located nearby in order to create supply chain savings. The quality of the team of professionals you’re going to work with, as they are going to become an extension of your business once you enter into a contract with them.

Your chosen toll processor will become the link between you, your customers, and your product, and this choice should not be taken lightly. You should choose a company that will not only make your manufacturing processes easier, but also a company that can reduce risk, add to your bottom line, and put you ahead of the competition. Review their quality assurance and control procedures, their supply chain management experience, and their track record.

If you believe your company can benefit from our toll processing services, please visit us at nationalmaterial.com or call (U.S.) 847-806-7200 to discuss how we can be of service.

About National Material L.P. – Since its founding in 1964, National Material Limited Partnership has grown to over 30 business units and is now one of the largest suppliers of steel in America. The National Material group of industrial businesses consists of the Steel Group, Stainless and Alloys Group, Raw Material Trading Group, Aluminum Group, and Related Operations.

2019-05-29T23:06:19+00:00 March 4th, 2019|News Blog|