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Contract manufacturing and toll manufacturing are business models that many companies utilize. Contract manufacturing involves a company contracting another manufacturer to produce a specified quantity of products on their behalf, often referred to as private or white label manufacturing. In contrast, toll manufacturing involves a company providing raw materials to a manufacturer, who then processes these materials into finished products for the original company, charging a fee for the service. Both methods offer companies flexibility in their production processes, allowing them to focus on their core operations while leveraging the capabilities and facilities of other manufacturers. These approaches can serve as transitions to in-house production or as integral parts of a company's business strategy.
