A toll manufacturing agreement is a contract between a company that owns a product or design and a manufacturer who agrees to produce the product on behalf of the company. This type of agreement is often used when the company lacks the resources or expertise to produce the product themselves.
Wikipedia is a popular online encyclopedia that provides information on various subjects, including toll manufacturing agreements. The Wikipedia article on toll manufacturing agreements provides an overview of what these agreements entail and how they can benefit both parties.
The article explains that toll manufacturing agreements typically include provisions regarding the production process, quality control measures, and pricing. The manufacturer agrees to produce the product according to the company`s specifications and standards, while the company retains ownership of the product.
The Wikipedia article on toll manufacturing agreements also discusses some of the potential risks and challenges associated with these agreements. For example, the company may face difficulty maintaining control over the production process and ensuring that the manufacturer adheres to their quality standards. Additionally, the manufacturer may face challenges in maintaining profitability if they are not able to produce the product efficiently or cost-effectively.
Overall, the Wikipedia article on toll manufacturing agreements is a helpful resource for individuals who may be considering entering into such an agreement. By providing an overview of what these agreements entail and some of the potential risks and challenges, the article can help individuals make informed decisions about whether a toll manufacturing agreement is the right choice for their business.