Contract packaging is used by millions of businesses the world over and is great way to reduce your operational costs, improve the service you provide and to increase your efficiency…
Contract packaging can range from the very simple to very complex. It can be used for all kinds of products, including hundreds of items you come in contact with every day, and the service can range from designing the packaging, to warehousing, packaging and distribution to your end customer.
Bread, cosmetics, canned goods, meat, cereal, yogurt, cheese and beverages are some of the hundreds of examples of everyday items that require packaging services. Similarly, other products that also use these types of products range from pharmaceutical companies to paint manufacturers, such as Crown Paints.
Think about how you would transport, decant, bottle and wrap the new perfume or aftershave that you have just developed. Most liquids like perfume and even e-cigarette flavored refills are produced in large quantities, which then need breaking down in to smaller lots and packaged ready for retailing, which involves much labor and cost. Contracting this out to packaging organisation, who already have all the resources (people, warehouse, logistics etc) in place, can save you a lot of money and time, leaving you and your team free to concentrate on development, sales and marketing.
When choosing a packer, take your time to find someone you trust and feel comfortable working with. If you are lucky to find the right contract packer for your needs, then you can develop a lasting working relationship. And over time, they will come to understand your needs and help you with innovative solutions to improve your presentation and even routes to market.
A good contract packer will also help guide you to determine the right materials and design to use for your products, based on your needs for distribution and budget. They will look to save money by reducing the waste used in their product. They also can help you determine the most efficient way to transport and distribute items so costs are not passed along to the consumer.
Here’s our 5 contract packaging top benefits:
1. Flexibility to meet customer demand
We all have busy periods throughout the year, and for a lot of retail focused organisations this is especially true in the lead up to the Christmas period. Many of us have been in this position (not enough hours in the day) so we bring in extra agency staff and pay the very high hourly rates that the agencies charge, whilst also having all the hassle of managing the extra staff. And during these busy periods, your warehouse easily gets full to the brim so you have no space for the extra stock. Having a relationship with a good contract packer can help you over-come many of these issues during your busy periods and save you a few quid to boot.
2. It’s cost effective
You will be surprised how cost-effective outsourcing your manufacturing and packing processes can be. Rather than having expensive large warehousing space and staff, you can pay per pallet for your storage and only pay while your product is being packaged and processed. This way you can moth ball your production in your quiet times and ramp it up during your busy periods, which means you don’t have to employee a large workforce and still pay them when you are going through your quiet periods.
3. Concentrate on other aspects of your business
For start-ups, micro and small organisations it’s vitally important that your team concentrate on growing the business with sales and marketing. As business owners, we are full of enthusiasm for our products and brand. Sometimes the last thing we need is for the team to get bogged down in the packaging and logistics. Leaving the time-consuming, operational side of your business to a contract packer, can allow you and your team get on with growing your brand and increasing your sales.
4. Expand your business without massive investments
As your business grows and you increase your product range and the number of customers you deal with, warehouse space will become a premium. And rather than going to the massive expense of re-locating to larger premises and hiring extra staff, why not outsource your packaging, warehouse and logistics to save you money and keep your operations and expenses to a minimum.
5. Increase your output rate
If business rapidly increases it can be extremely difficult and expensive to ramp up your operations at the same rate, and to keep the customer service you provide to high level. Contract packers can help you to quickly increase your output rate of orders, without the added expensive and hassle, and make sure your customer service levels are high, which can be measured through contracted service level agreements written within the contract you agree.
Currently we don’t use a contract packer, as most of our products are pre-packaged before they arrive to us. But, as the ‘Money Saving Experts‘ for the office and workplace, if our business model changed, we would certainly go down the contract packaging route, and we would seek advice from our good friend Carl Elmer. Carl and his team have masses of experience in the contract packaging industry.