Toll Manufacturing Minute with CPS: How Toll Processors Help Manufacturers Optimize Supply Chains

Supply chain management is more critical—and more challenging—than ever before. The global disruptions and crises in recent years compelled manufacturers to implement or reassess "best practices" and seek more resilient solutions.

In this podcast episode, CPS Vice President of Business Development, Albert Medoro, explores how new and amplified supply chain management challenges are putting unprecedented pressure on manufacturers. Albert also shares how technology and strategic partnerships with full-service toll processors such as CPS can turn supply chain obstacles into opportunities.

What’s Driving the Change?

Supply chain management has always come with its share of challenges, but current trends and geopolitical upheaval around tariffs have made material shortages, shipping delays, and labor constraints commonplace.

These issues create a complex environment that leaves manufacturers vulnerable to rising costs and complicated sourcing decisions. In addition, consumers demand faster deliveries, real-time tracking capabilities, shorter lead times, and more reliable service overall. The combination of heightened complexity and expectations can trigger delays that — even if minor — can result in lost sales and frustrated customers.

Therefore, supply chain optimization must be viewed as essential, not merely reactive damage control.

Technology Takes On a Larger Role

Technology is making meaningful contributions to supply chain management and optimization. "We heard a lot of buzzwords like AI and real-time data. But it's not just buzzwords anymore," Medoro explained. "AI is making it very easy for companies to now start to source and select their suppliers based on different algorithms and characteristics."

Notably, AI is a valuable tool for helping manufacturers:

• Make more strategic supplier selections based on lead times, cost, and geography
• Improve demand forecasting by analyzing past performance and external variables such as weather patterns or geopolitical considerations
• Reallocate the time and focus of procurement teams from research to targeted tactical planning

Suppliers Transition from Vendors to Partners

The relationship between manufacturers and suppliers has evolved significantly. "Established manufacturers aren’t looking just for vendors anymore," Medoro notes. "They really want partnerships with their suppliers, and they want their suppliers to be like a true extension of their company."

This partnership approach prioritizes trust and transparency through:

• Open, timely communication even — and especially — when issues arise, since bad news doesn’t get better with time
• Transparent pricing and forecasting that sets realistic expectations on both sides
• A collaborative mindset that targets, develops, and supports long-term growth

The Efficiencies of Toll Processor Partnerships

Full-service toll processors such as CPS specialize in handling complex, specialized production processes that may fall outside a manufacturer's core competencies. "When a toll processor is able to run a specialty product on a piece of equipment that has other specialty products to run on it, it really helps with the overall capacity and usage of both facilities," Medoro explains. "You're cutting down setup time and manufacturing inefficiencies."

Likewise, the improved resource management:

• Frees up internal teams and administrative time to focus on other projects
• Provides access to expanded logistics networks and specialized technical expertise
• Reduces setup time, production bottlenecks, and lead times

More Flexibility, Greater Responsiveness

Markets shift constantly, demand fluctuates, and product specifications evolve. Large manufacturing facilities often struggle to adapt quickly to these changes, but full-service toll processors can provide crucial flexibility.

This allows manufacturers to avoid what Medoro calls the “ricochet effect” throughout their infrastructure since it:

• Tests and modifies formulations and particle sizes without committing to expensive internal changes
• Scales up production quickly when demand spikes
• Pivots back just as fast if needed—without disrupting core operations

Our Comprehensive Approach

Custom Processing Services offers a distinctive advantage by handling multiple processes under one umbrella. Our services include micronization, blending, milling, repackaging, and screening—all available at a single location, creating streamlined efficiencies for manufacturers.

In addition to full-service processing services, CPS provides engineering expertise and rigorous lab testing capabilities. "It's not just about running the materials through the machine," Medoro emphasizes. "We have to help manufacturers optimize the entire operation" by expertly:

• Identifying potential pitfalls early
• Modifying processes and equipment as needed
• Reducing the risk of failure during scale-up

4 Key Takeaways for Supply Chain Optimization

For manufacturers looking to optimize their supply chains, Medoro offers several important recommendations:

1. Establish relationships with toll processors to fill critical capacity gaps and gain access to specialized expertise
2. Leverage toll processors' flexibility to respond quickly to market changes while maintaining margins
3. Prioritize toll processors’ expertise and ability to operate and integrate equipment effectively — not just the equipment itself
4. Consider the value-add of capabilities and services under one roof to reduce logistical complexities and costs

Turning Supply Chain Risk into Reward

Supply chains inherently carry some risk for manufacturers. Mitigating it to your best advantage requires understanding and leveraging partnerships with toll processors that are invested in helping achieve greater efficiency, flexibility, and competitive advantage.

CPS has the capabilities and reputation to support your supply chain optimization goals. Find out more about the expertise and technologies we offer by downloading our Milling Methods Comparison Guide.