As your business brand grows, there will be a lot of decisions to make, especially as you’re looking to optimize distribution, packaging, production, and sourcing so as to keep the momentum going.
Launching a product in a new marketplace is probably up for discussion, or maybe you are more interested in moving core products from the bag-in-box packaging to a stand-up pouch.
Whichever the situation, experts at TopPop Packaging say that there might come a time when it will make more sense to outsource the manufacturing process.
Entering new markets, transitioning into a new packaging format, or launching a new product might be the key to fueling growth. However, all these come with risks and costs.
So if you get yourself in such a position, partnering with the right contract manufacturer or packaging company can mean a great difference.
How Contract Packaging Works
Outsourcing all your packaging operations to a contract manufacturer will enable your business to concentrate on its core capabilities.
A contract manufacturer has the expertise and ability to manage every aspect of the supply chain as well as your needs.
In addition, contract packaging may include implementing, optimizing, and purchasing the right packaging materials and machinery for all your products.
Types of Contract Manufacturing
There is a wider range of contract manufacturing services, including product shipment and package design. Among the services which packaging contractors may provide are:
- Shipping services
- Product packaging
- Packaging testing
- Packaging design
Process of Contract Packaging
The complexity and scope of all packaging projects depend on the products. That is why contract packagers work in hand with manufacturers and product managers to create suitable packaging for the brand and product.
Immediately companies consult and agree upon contract packaging processes; the wheel is put in motion. Typically, this includes six main phases: storage, assembly, packaging elements production, printing components, inventory management, and design.
When to Outsource Packaging Services
Generally, contract packagers are chosen by manufacturers when it is more effective and less costly than packaging products in-house.
Contract packagers will also bring expertise to the table, as they breathe and live packaging every day. When supply chains are unpredictable and the market unstable, it will make more send to have your packaging responsibilities to a packaging company so that you may concentrate on your business’s core competencies.
Why Work with Co-Packer/Contract Packager
Due to the high-volume and short-term nature of packaging fulfillment combined with staffing hours and demand for specialty equipment, contract packaging services can be outsourced for various reasons.
An experienced and reliable contract packager saves you resources in various ways. They have the expertise, materials, and production facilities to deal with small and large packaging requirements.
Secondly, outsourcing contract packaging means packagers don’t need to invest in packaging equipment, materials, and production facilities. This helps to keep overhead low, resulting in higher ROI.
Contract packaging is similar to build-your-own pizza. You can choose everything, from materials to packaging methods, and a contract packager makes packaging to be sold under your brand.
So with the right contract manufacturer or packager, you will have many vendors working on finishing the final products.