Advantages and Disadvantages of Tolling

Environmental—If a product or its raw materials require special permitting (for example, air permits) or if the client company s facility is inappropriate for the process, tolling could provide a means to achieve the company s production goal. 

Product or Process Development—A company can develop a new product or process as a quasi-research effort with a toller while simultaneously building the in-house production capacity. This allows problems found in the toller s intermediate scale efforts to be fixed in the large-scale process and to reduce development time and costs. It may simply be a case of a company wanting to try new raw materials in a well-known process without disrupting existing production or establishing a pilot facility. Tollers can provide a way to achieve these activities in a parallel fashion. 

There are two primary advantages of tolling that can be summarized from the previous section addressing the reasons to toll  

The disadvantages of tolling are less clear cut. A contract is intended to limit liabilities for at least one and hopefully both parties. Tolling liability can be limited by identifying potential problems and avoiding them using techniques presented in this 

Some potential problems involved in tolling are listed in Table 1 -1. 

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