It is understandable that business owners want control of every part of their operation, but when it comes to packaging it is often better to enlist the services of a contract packaging service provider instead of doing it yourself. Automated packaging equipment is expensive and specialized, so it makes sense to use a reliable contractor who has already invested their money and expertise, while you and your employees continue to grow your business.
More and more businesses are outsourcing their packaging needs. According to the US Contract Packaging Association (CPA), the contract packaging industry has more than doubled since 2008.
In a report on the state of the contract packaging industry released in 2014, it was found that the “most prolific industry segments” using the industry were food and beverage. But by 2018 the pharmaceutical and personal care sectors are set to have achieved extensive growth within the contract packaging industry, with more and more companies outsourcing packaging. Furthermore, in the early days of the industry many companies used temporary labor, but since 2008 the industry as a whole has been moving towards a growing workforce of full-time employees. This in itself shows that the industry is becoming stronger.
But the question is, can someone else fulfill your packaging functions better than you?
How a Contract Packaging Service Provider Is Able to Do the Job Better Than You
When you outsource your packaging needs to a contract packaging service provider, you are essentially forming a partnership. This means your expectation will be that the company you choose can package your products at a competitive cost within your time schedule. Quality assurance is also important.
The CPA points out that often a contract packaging service provider will also be able to assist with some of the common problems that start-up businesses have including limited production facilities and concerns relating to investment in equipment.
While outsourcing is not the answer for every single business with packaging needs, good reasons for using a contract packager include:
- A lack of equipment or in-house packaging expertise
- Short-term requirements for equipment where investment doesn’t make financial sense
- Corporate downsizing of facilities and/or employees
- The need for packaging that is non-standard that would require expensive special equipment or labor-intensive work
- The advantage of using facilities that are geographically separated for national distribution of products
- The option of shipping in bulk to markets in other parts of the country that can then be packed locally at a more economical price
A contract packager is also a good option when a business is sitting with unsold stock that needs to be re-worked and packaged differently to make it saleable.
When Not to Use a Contract Packaging Service Provider
There are times when it doesn’t make sense to use contract-packaging services.
For instance, if your packaging needs are minimal and can be done economically by hand, you’re unlikely to need the services of a company that specializes in automated packing equipment. Similarly, if your packaging problems can be addressed efficiently and effectively with other methods, or you’re not sure what your needs are, it’s better to hold off outsourcing, at least for the time being.
Don’t be tempted to use a contract packager to try and salvage a commercially project you think is no longer viable; you’ll be wasting your money and their time.
Finally, the CPA warns that businesses should only enter a partnership with a contract packaging service if they are financially and organizationally willing to implement suggestions.
Find a Partner Willing to Help Solve Your Packaging Challenges
Technik Packaging Services is a well-established, reliable contract packaging service provider that commits to strategic partnerships with customers. In addition to both manual and automated packaging, the company offers product assembly, shipping fulfillment, logistics services and distribution, all customized to your needs. Contact our friendly team today for more information and pricing.