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Contract manufacturing and toll manufacturing are business strategies utilized by various companies. Contract manufacturing involves a company forming a contract with a manufacturer to produce a specified number of products for a designated timeframe, often referred to as private or white label manufacturing. This approach allows companies to leverage external facilities for manufacturing, either as a temporary solution or as part of their core strategy. In contrast, toll manufacturing involves a company providing raw materials to a manufacturer, who processes them into finished products, with the original company maintaining ownership of the materials throughout the process. Both methods enable businesses to optimize production without directly investing in manufacturing infrastructure.
