Contract Packaging Just May Be The Ticket To Growing Your Business
When people hear the term co-packing, also known as contract packaging, there are two questions they ask. “What is co-packing, and how does it work?”
This is an arrangement whereby a firm (let’s call them firm A) allows another firm (firm B) to handle the packaging of its products. Let’s look at co-packing agreements in depth.
How does co-packing work?
What is a co-pack agreement? Co-packing is an agreement between a firm A and its co-packer, firm B. It allows firm B to handle all the packaging processes for firm A.
This contract allows firm A to focus on its specialty, which is production, and firm B focuses on the packaging, branding, and logistics. The two companies have to come to a formal co-packing agreement which outlines the nature of their relationship.
Why do firms opt for co-packing?
There are many reasons why your firm might want to consider co-packing as a way of streamlining its business operations, including:
- Cost – For most firms that opt to enter into a co-packing agreement, cost is the main driving factor. Instead of firm A establishing a packaging unit, these costs can be saved by outsourcing the services of a co-packer.
- Technology – Co-packers invest a lot of resources in technology that helps to make the packing exercise smooth and time efficient. Many companies lack this technology, so it is necessary to seek a partnership with a co-packer.
- Spike in demand – A co packer’s services can come in handy if a company is experiencing a spike in demand for its products. This sudden increase may mean the company is unable to meet the packaging requirements at its facility, so they need to enter into an agreement with a co-packer.
- Specialization – Specialization is a core principle of economics and running a business. Companies that choose to specialize in one specific task might find the services of a co-packer to be necessary. This may inform their choice to enter into a co-packing agreement.
Which industries can co-packing serve?
Co-packing, as has been established, focuses on the packaging and branding of products given to them with permission from another company. The services of a co-packer can cut across many industries.
With the question of what co-packing is and how it works answered, the following list of industries stand to benefit most from agreements with a co-packer.
- Cosmetics – The cosmetic industry is one that relies heavily on the right packaging to make a dent in the market. The services of a co-packer can help a firm in this industry to transform into a market leader.
- Pharmaceuticals – Many times, medicine isn’t packed by its manufacturing firm. Co-packing is a crucial aspect of collaboration in this industry.
- Beverages – Bottling companies are a must have for the beverage industry. Without them, it would present a challenge for a company to distribute its products.
Is Co-packing Right for You?
The answer to this question will be based on two things; what you produce and in what quantity. This is what determines whether your firm needs a co-packer.
Is your business overflowing with orders and finding it hard to fulfill them? Small and medium-sized businesses all aim to be successful, but with new success come new problems. How do you ensure that your product is packaged properly for delivery? The packaging process is very sensitive, and the smallest mistake in packaging or labeling can result in the item either breaking or not reaching its proper destination. This is where pick and pack services come to your aid.
What are Pick and Pack Services?
Through pick and pack distribution, sold items are picked up and packed safely with the correct shipping label and invoice. The service ensures that your product is all set and prepared for shipment.
It’s not easy for businesses to have a streamlined picking and packing process. From an organized inventory to properly packaging and labeling, you need complex systems, technology, and human resources, not to mention the storage space required. Through a fulfillment service, all that is taken care of for you, taking away a major challenge and leaving time for your business to focus on tasks that can further its growth.
How Will The Service Benefit Your Business?
There are very few challenges of pick and pack fulfillment, but there are many benefits of pick and pack services. These include:
- More Efficiency: The service provides you with a packaging solution that is outsourced. This allows your business to focus on other tasks such as sales, marketing, customer service, and so on. The solution also ensures that your products are packaged the right way, so there are no issues with shipping.
- Quick Turnaround: With the right technology and expertise, goods are packed in a timely manner, so they are ready to be shipped to customers. The process is far quicker than the time it takes for small and medium businesses to handle packaging.
- Business Growth: With your business focusing on generating more relationships and sales, it will experience more growth. All due to the fact that packaging is no longer something you have to worry about.
- Save Money: Relying on experts reduces the chance of errors being made with packaging and shipping. This allows your business to save money in the long run that would have been spent on mistakes with labeling and packaging. In addition to this, your business will save more by not having to employ software and employees to accomplish the task in-house.
The Right Solution for Your Business
The Brimich Group has been in the supply chain management and logistics business for over 50 years. They have the expertise, skills, and the technology to handle your businesses pick and pack strategy. They ensure to provide exceptional service, so their clients can continue to grow. With The Brimich Group, businesses no longer needs to worry about having the right technology or process in place to package products for customers. All you have to focus on is ensuring that the orders keep coming and your business continues to grow.