What is contract manufacturing and toll manufacturing

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Contract manufacturing is when a company hires another company to produce their products, while toll manufacturing is when a company provides raw materials to another company to produce a product.

Contract manufacturing involves outsourcing the production of a product to a third-party manufacturer.
The company that hires the manufacturer retains control over the design and distribution of the product.
Toll manufacturing involves providing raw materials to a third-party manufacturer to produce a product.
The company that provides the raw materials retains ownership of the materials and pays the manufacturer for their services.
Examples of contract manufacturing include Apple outsourcing the production of iPhones to Foxconn, and Nike outsourcing the production of shoes to factories in Asia.
An example of toll manufacturing is a chemical company providing raw materials to a manufacturer to produce a specific chemical compound.

What is contract manufacturing and toll manufacturing

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