What is contract packaging?
Contract Packaging, also known as Co-Packing, is the overall process of assembling a product or good into its final finished packaging. Contract Packaging can be a simple or complex process as it is customized according to the specific scope of the product packaging, which varies greatly across the retail, commercial or trade industries. Contract Packaging and Co-packaging companies provide contract packaging services to product manufacturers and often act as an extension of the company.
Depending on the product, the final packaging may come in a variety of forms, including a thermoformed / plastic clamshell or blister packaging, a plastic bag, a standing corrugated retail point-of-sale display or a transport tray (to give a few examples). Contract packagers can be tasked with something as simple as adding a barcode sticker to a product or as complex as planning, designing, producing and fulfilling the entire package.
WHY USE A CONTRACT PACKAGER / CO-PACKER
Because of the short-term and medium to high-volume nature of product packaging fulfillment, combined with the demand for specialty equipment and staffing hours, contract packaging services are typically outsourced to contract packaging companies. These contract packaging experts are specialized at handling varying levels of the contract packaging sequence and have many in-house resources or outside partners to respond to specific product packaging needs in a timely manner. Ultimately, this gives product manufacturers and product managers great flexibility in defining the packaging process based on the needs of the product.
Our facilities are certified with GDPMD grade, along with a full range of total tracking and reporting system which makes the environment safe and enclose. We provide a holistic service with this packaging as we are able to fulfill the manufacturer’s needs regardless of volume and varying levels of contract packaging sequence without further 3 rd party and delivered on predetermined time.
Benefits of Contract Packaging
Save on Costs & Maximize Profits
With a Co-packaging company, you can save on costs significantly. By outsourcing your product packaging, you will not have to dedicate valuable in-house resources to manufacturing. Working with a co-packaging company eliminates the need to juggle between vendors and helps you avoid running into unexpected costs. You’ll overall reduce labor costs significantly.
By knowing exactly what your packaging process will cost you ahead of time, you can practice better budget control throughout the entire product life cycle.
Increased Technical Insight
Contract packagers also provide businesses with technical insight found nowhere else. Since contract packagers build products for a versatile selection of companies, they have valuable in-depth knowledge of product build for various niches.
Contract packagers also have the knowledge to spot potential risks and flaws within the design early on. This can prevent fatal mistakes within a product that could cost you significant funds in the long run.
More Flexibility Within Your Company
Since a contract packager will completely take on your manufacturing process, you’ll create more opportunities within your company.
When you choose to outsource the packaging process, you’ll free up time for your employees to create more innovative prototypes and design additional groundbreaking products. Your employees will experience the flexibility to focus on what’s truly important.
As a small business or start-up, it’s difficult to scale your product with limited resources at hand. Since contract packagers have significantly more resources, they’re more than able to scale your product.
If you’re experiencing a peak in demand or seasonal decrease in demand, contract manufacturers can quickly scale production needs to whatever is necessary. With these scalable measures, you’ll be able to take your product to new levels and be in control of demand fluctuation.