If your companies in-house packaging department is struggling to keep up with demand, or simply does not have the space required to install new machinery that can cope with the sort of volume your operation in producing, it may be time to consider contract packing.
A co-packer, or contract packing company is a business that specialises in providing cost effective packaging services at scale. Many contract packing companies are also experienced product packaging designers, so they can also help you ensure that your packaging performs well at the point of sale.
Ultimately, the kind of product you manufacture will determine which contract packaging company is right for you. Some co-packers may specialise in thermoformed packaging which can be ideal for small toys and electrical goods, others may specialise in laminate film packaging which is generally used by the food industry.
Considerations
For this reason, the first consideration when choosing a packaging company should obviously be suitability. Do they have the equipment, staff, and experience required to perform the task of packaging your goods in an efficient and cost effective manner? You may also want to consider the location of the packaging company, if they are too far away, logistical costs could negate any savings you make by outsourcing your operation.
Benefits of Outsourcing your Packaging Needs
For SME’s with limited space, outsourcing packaging can provide businesses with the extra space they need in order to increase production. Packaging lines could take up a significant percentage of your businesses available floor space, and by moving your packaging operations to an external contractor, you are able to reclaim and repurpose that space.
You could also benefit from increased output, since contract packagers have already invested heavily to obtain the most efficient, cost effective and high volume packaging processes. Choosing a centrally located packaging company could also help you improve the efficiency of your national distribution logistics.
Lead time can also be drastically reduced on new product lines by involving your co-packer at the early stages of your product development process for new lines. By the time your company starts manufacturing the new product, your co-packaging company could already have approved packaging designs in place, and be set up ready to begin packaging your product when the first consignment arrives.
Many companies choose to involve their co-packaging company at the design stage of product development because they can provide valuable insight. By consulting with a specialist who has created thousands of packaging solutions, you gain access to vital knowledge regarding what works and what does not.
Reduce Capital Investment, Increase Profitability
By partnering with an external contract packager, you benefit from the best available packaging equipment, experienced packaging staff, and bulk material discounts without having to invest vast amounts of capital into obtaining new space, recruitment, and plant. Contract packagers are also able to quickly increase production, allowing you to take seasonal demand increases in your stride. Furthermore, your product line is no longer limited to product that your existing packaging equipment can manage. This means that your company is free to diversify and could potentially enter new markets.
