Contract packaging is a multi-range type of service. A contract packager is a company that provides different types of packaging services. Some are only tasked to pack another company’s products while others manufacture the products themselves and pack it for the client company. A contract packager provides the manpower, equipment, location and anything else that you need in order to pack or assemble or create your products. Sometimes a contract packager can also formulate a product for a client. A contract packager can be a valuable part of your supply chain management.
Advantages of outsourcing
There are many advantages to using a contract packaging service. You can reduce your expenses when you hire a contract packager. You don’t need to invest in equipment and facilities if you just outsource your packing needs. You can have a constant manufacturing charge every month. If you did this in-house, you must consider repair and maintenance of your machines. Unexpected breakdowns mean additional costs. With a packager, you pay for the agreed price only.
If you’re a startup business, you can lessen the cost of manufacturing your product. If they have the facility, you can outsource manufacturing to them. Some packagers can even do the research and development for you. They can test your product and meet all government requirements.
By using a contract packager, you can deliver your item to the market on your targeted date. As they specialize in this type of business, they already have a streamlined process. Some packers also have automated systems and machinery in place to make the process run smoothly allowing you to deliver the goods to your clients in no time.
Another advantage is the connections that a packer has. They are already familiar with the necessary permits and certifications so you won’t have any problems with the government. They also have existing credits with suppliers. They will get a better rate for most (if not all) services and/or supplies than you because they have been doing this business for a long time and have developed relationships with these suppliers. Most packers have their own warehouses and know how to properly store raw materials and arrange the finished product. Some packers even help you with designing a label and the labelling itself. They already have the necessary equipment for this service so you don’t need to look for another vendor.
Treat your contract packager as an extension of your company. You can customize the services that you want to meet your standards. By hiring a contract packager, you can focus on marketing your business and closing sales. You can drive more customers to your business without worrying about your supply chain management.
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