In the contract-manufacturing world, timing is everything. To be profitable, a company must get a product on the shelf faster and at a lower cost than its competitors. Sometimes that means adding specialized slitting equipment to your line. When such investments aren't feasible nor in line with corporate strategy, companies such as Green Bay, WI-based TUFCO Technologies, Inc., extend their capabilities through strategic outsourcing.

For example, when a Fortune 500 customer needed precision slitting for a lightweight product, TUFCO turned to Contract Converting LLC (www.contractconverting.com) for a high-quality, cost-efficient solution.

With its 100,000-sq-ft facility, Contract Converting offers full-service materials distribution for customers (at right).

“As a contract manufacturer of wet and dry wipes for the consumer market, some of TUFCO's products require several manufacturing processes, and sometimes we require offline slitting,” explains Michele Cherney, TUFCO senior vp-sales and marketing for the contract-manufacturing business sector. Along with wipes manufacturing, TUFCO provides wide-web flexographic printing, towelette converting, adhesive laminating and downstream contract-packaging services.

Because offline slitting is not a TUFCO core competency, and in-line slitting can sometimes slow down the process, TUFCO teamed up with Contract Converting. By integrating into its customer's manufacturing process, Contract Converting effectively extends its own manufacturing capabilities, turning orders faster and cheaper than customers would likely be able to do in-house.

While TUFCO already had the converting technology at its disposal, the company's research showed that outsourcing would prove more beneficial in the long run. “In this instance, a Fortune 500 company needed a very specific application,” Cherney says. “Our cost analysis revealed that slitting online was more costly than outsourcing to a company with the right equipment and capabilities. Contract Converting had everything we were looking for.”

More and more, manufacturers are outsourcing converting jobs to stay competitive. There are numerous benefits to these integrated partnerships. By eliminating investments in state-of-the-art-equipment, manufacturers can greatly reduce operating, training and labor costs. Contract Converting executes custom-slitting programs for TUFCO and others. Customization eliminates redundant “learning curve” costs, assures consistency, cuts waste and improves “speed-to-market.”

Left to right: TUFCO senior vp-sales and marketing Michele Cherney discuss the company’s latest custom slitting project with Contract Converting vp-business development Bob Saari and president William Schnettler.

Slitting isn't always easy. Contract Converting needed precision tension control to successfully slit TUFCO's lightweight, single-ply tissue due to its low tensile strength. “It's critical for Contract Converting to use the right equipment with just the right amount of tension. They have to bring the web through and eliminate wasteful breakage,” Cherney explains.

Equipped with an array of duplex and two-drum surface winders, Contract Converting has expanded its capabilities by adding a specialized film winder to an already-versatile machinery lineup. The company's facility also includes doctor winding and diversified material-handling equipment.

When TUFCO was searching for an integrated converting partner, management wanted a vendor with as much adaptability as capability. “In the consumer world of Wal-Mart convenience, everything is due yesterday. Success depends on speed-to-market …it's a race to determine who gets to the shelf first,” says Cherney.

“Flexibility is key,” she adds. “Our turnaround times have gone from 10 weeks down to one or two weeks, so we need everyone involved in the process to take changing needs in stride and turn the product around quickly.”

Over the past several years, TUFCO has built a strong working relationship with Contract Converting, bringing the company on board for projects in various markets, including feminine-care, laundry and industrial. “With TUFCO, we work together closely and confidentially to provide solutions for their specific project requirements,” says William Schnettler, president of Contract Converting. “These collaborative relationships provide a measurable advantage to our customers in the long run.”

Cherney agrees, pointing out the real key to the TUFCO/Contract Converting partnership—Total Delivered Cost. Manufacturers have to look at the big picture rather than line-by-line expenses, Cherney explains. For example, if another vendor came in a few pennies less on the slitting estimate, is it worth the extra freight costs? If you consider today's fluctuating fuel prices, it's clear that shipping rates can make or break the bottom line.

Great service, industry experience and flexibility are three major reasons TUFCO will continue to work with Contract Converting. “Contract Converting... really understands our needs, which means we can count on them to act quickly if one of our customers has an urgent project,” Cherney says.

With more than 50 years of combined industry experience between Schnettler and vp-business development Bob Saari, there has never been a challenge too difficult for Contract Converting's well-trained team to handle. “We've been in this business long enough to know that on-a-dime flexibility is a real value to our customers,” says Saari. “We have the capacity, resources and the right workforce to make adjustments to our production schedule at a moment's notice.”

“Everyone has to be on the same page from start to finish,” adds Schnettler. “Seamless communication is absolutely crucial if you want to prevent costly delays or wasted materials.”