Many goods manufacturers are specialists in-terms of physically making their items but do not have the expertise when it comes to the packaging and retail elements. This is why they may look at someone to do this for them.
This is where a contract packing service can help. Contract packing (sometimes referred to as contract packaging or co-packing), is the process of creating and assembling packaging in order to get a product ready for sale.
Why use this kind of service?
There are many reasons for using a contract packing service. They will have in-depth specialist knowledge, so it can save time, money, and stress, as well as making things easier to predict and guaranteeing turnaround times and efficient use of resources.
The global contract packing market was worth $52.3bn in 2019, and is forecast to reach almost $120bn by 2025
If you are a manufacturer and feel you could benefit from this kind of service, there are resources available on specialist websites such as the examples seen here: www.wyepak.co.uk/contract-packing/.
Choosing a contract packing service
There are many factors to consider when choosing a service to use. The key ones are probably:
Location – are they close enough to you to keep transportation costs to a minimum? And are they near enough to visit if you need to? On the other hand, are they located near to your target market (and is this actually more important)?
Reputation/quality/certification – are they established experts in their field? Do they have all the quality accreditations and certifications that are needed in the industry?
Capacity/minimum order quantity – do they have the capacity to deal with big orders themselves? What is their minimum order quantity (if you are just starting out or wish to run a trial before scaling up)?
Communication – how easy is it to speak to someone if you have a query? How quickly do they respond to emails? Will they always contact you if there are delays/issues with your order?
Price – are their prices in-line with the industry norms and will they enable your company to increase profit and ROI? Is it definitely worth it from a value-added perspective?
It is always worth investigating potential partners thoroughly. This includes visiting their facilities, talking to their existing customers, and carrying out financial due diligence.