With the ever increasing pressures on businesses, more and more efforts are being made towards operational cost reductions, optimizing processes and improving sales. Many a times, every bit being done in house is a huge cost to the company. It is neither technically nor financially the most viable solution. Outsourcing, has in many ways, served as the best possible solution to organizations. With an increase in demanding customers and cut throat competition, it is all the more important for businesses to focus on their key skill and outsource the peripheral activities to experts.
Food and beverage industry is no exception to the rule. Unlike earlier times, Packaging is no more just an extension of the manufacturing process. It is an important aspect of your overall revenue.
Hence the business of co packaging has picked up immensely in the last couple of years. Modern co packers, not only handle your packaging requirement but act as your end to end partner for design, packaging, labeling, warehouse and distribution. They act as a strategic partner to manufacturers
guiding them through the entire life cycle of the product.
Apart from being cost effective, Contract Packaging also helps in optimizing the overall manufacturing process and thus making it the right choice for manufacturers. Here are 6 ways contract packaging can optimize the manufacturing process
1. More options to offer:
By varying packaging of their products, there are more options that manufacturers can offer to their customers thereby increasing their market share. However, variety in designs and types of packaging can only come from a variety of machines. Most manufacturers cannot afford to have more than 1 or 2 type of packaging machines due to constraints on physical space as well as increased costs of owning and maintaining the machines. Outsourcing your packaging needs to an expert gives you the space as well as financial bandwidth to explore various packaging designs that you can ultimately offer to your customers. The manufacturer now needs to focus only on manufacturing bulks while the trendiest packaging is being taken care of by the co-packer making it a profitable situation for manufacturers.
2. Reducing costs:
Outsourcing packaging to a co-packer saves a lot of transportation and handling costs. A co-packer’s facility is highly scalable as well as competent enough to handle a variety of packaging. With fuel and transport costs going at an ever high and adding to a major operational cost, partnering with a co-packer ensures optimum packaging for your products thereby reducing costs on storage and transport of your product.
3. Expertise Matters:
Since packaging is their bread and butter, co-packers know it inside out. They are adaptable to market needs. A good co-packer understands what the customer picks from shelves and also knows the right packaging for the right product be it material, design or size. Partnering with the right co-packer can help you not only save your expenditure but also ensure that your product is picked up by the customer. A right packaging can ensure minimum wastage of product and space and may immensely boost sales. Your contract packaging partner can guide you through these finer details and can professionally handle all your packaging dilemmas thereby making your manufacturing process seamless.
4. Improves focus on your core business:
Co-packers offer a variety of value added services like fulfillment, logistics, bar coding etc. With a right partner taking care of all these additional tasks, the manufacturers can increase their focus on their core job of manufacturing. If your co packaging partner is doing the overall manufacturing and formulation of your product, you can focus on your key strengths of say, sales and marketing and derive optimum results for your business. A true manufacturing optimization can be achieved by using value added services of a co-packer.
5. Optimizing process through design inputs:
Involving a co packer at the design phase for a new product can help you speed up the whole process. Having valuable inputs about packaging right at the start can ensure speeding up the overall manufacturing process as well as lesser hiccups through the cycle. Co-packer’s inputs about suitable designs for your product with transport, shelf placement and customer attention at the back of mind, can help you get it right first time thereby improving the overall manufacturing efficiencies.
6. Builds a sustainable model:
Even if you invest in packaging at the initial stages, it may not be a sustainable model. Technological advancements may push you to constantly invest in upgrades or compromise on adopting the latest environment friendly solutions that can make or break your business. Outsourcing to co-packaging experts is a winning answer to all your troubles. It relieves you of a lot of mental and financial burden. Co-packers usually offer flexible solutions to suit your changing demands thereby benefiting your fixed costs. A manufacturer’s internal standard processes need not change due to varying demands thereby bringing higher optimization with huge cost savings. Lastly, the overhead costs like maintenance or upgrade of machinery and upskill of labour, is no more a manufacturer’s headache!