Co-packing companies act as an extension for your business. Manufacturing companies turn to contract packaging for a variety of reasons – all of which lead to more efficient processes (ie. cost savings and higher revenue). By outsourcing packaging solutions, you are able to partner with experts who are more knowledgable about the current state of packaging and what is best for your business (in regard to packaging). Here’s more information about why contract packaging is trending now and what you need to know before you outsource your packaging.
TYPE OF SERVICE
When you outsource your packaging it is important to understand the type of services that your packaging company offers and their ability to grow with you as your company grows. Consider where you are today and how you plan to grow over the next 5+ years. Make sure that your packaging partner can handle the volume and other needs you might have as you grow.
Not all packaging companies are able to fulfill every single packaging demand. In other words, every company has it’s own list of services offered. For example, some companies offer bottle filling services (for beauty, food, etc.), while others don’t. Some packaging companies have full design departments, and others do not. Make sure you consider all of the packaging services that you will need to get your product from warehouse to customer. Ideally your co-packer will be familiar with your industry and able to guide you with what services you need.
COVID-RELATED TRENDS
Covid has caused a multitude of packaging hurdles for manufacturers and packaging companies. Food packaging companies have had to make dramatic changes to make sure they are in line with safety protocols. Tamper proof and other safe packaging protocols have become more and more important. Packaging product shortages have also been a major problem since Covid started. Packaging companies solve these problems every day and are able to get access to products and/or create alternative solutions for their customers.
LABOR SHORTAGE IMPACT
At the same time that we are experiencing a labor shortage, there is also a strong demand for product packaging and consumer goods. Manufacturing companies (small and large) are having a hard time filling nearly every role, including labor to pack boxes. Having a co-packer ensures that you have people (and/or machines) to keep your packaging line running. For this reason, more and more companies are turning to contract packaging.
LOCATION IS KEY
Having a packaging provider located in your neighborhood is critical. You need immediate access to the products and materials that your packaging provider offers for you. When considering location, make sure to select a location that is ideal for getting your raw product or ingredients to the distribution center; as well as getting it out the door to your customer. Your headquarters might not be the same place as your manufacturing facility so make sure to consider all of the transportation costs and where the best location will be for your products to be packaged.
IS A CONTRACT PACKER RIGHT FOR YOU?
For many companies, outsourcing packaging is the best move to improve operations and grow business. But it is also important to ensure that partnering with a co-packer is the right solution for your offering. Make sure to consider location and prepare your interview questions for your co-packer before you make a decision.
WHAT QUESTIONS SHOULD YOU ASK
You will have a lot of questions to ask when you begin to work with a contract packer. New Hope network has aggregated the top questions that you should ask when contacting a contract packer:
- What do you currently manufacture? What equipment do you have that is available to a prospective client?
- Are you interested in my ideas/product? Can you make my product with your current machinery? If not, what machinery would you need?
- How do you price? What requirements need to be met to be considered?
