Brimich Logistics Inc. proudly announces its second consecutive year of achieving a perfect 100% SQF audit score at our Martin Grove facility in the GTA.

Amidst the modern consumer landscape, the Safe Quality Food (SQF) certification stands out as a beacon of excellence when handling food products. Dedication to high standards and outstanding SQF walk-through scores signals a commitment to uncompromising food quality and safety in Brimich facilities.

Brimich has a dedicated SQF Select warehouse and is one of the first in North America to receive this certification. The Food Safety team is currently working toward this accreditation in all our Brimich facilities.

The entire team at Brimich has a shared commitment toward excellence and continuous improvement. Success in audits and scores belongs to each Brimich team member, with the Food Safety team having a heavy hand in providing SOP’s, improvements and data to all internal teams, helping us to keep high food safety standards in our day-to-day operations. Let’s take a moment to introduce the Brimich Food Safety team:

Rick Watson – Vice President : Food Safety and Compliance
Pooja Patel – Food Safety and QA Manager
Patrice Campbell – SQF Practitioner
Brenda Mathers – NCR Coordinator
Natalie Hopkins – NCR/QA Coordinator
Kennedy Amore –  Food Safety/QA Summer Student

The Significance of SQF at Brimich Logistics Inc.

In 2017, Brimich made a strategic shift towards specializing in food, food ingredients and food packaging across its operations. This decision marked a pivotal moment in the company’s direction, aligning business focuses and partnerships with critical sectors of the supply chain – stringent food quality and safety standards.

By 2018, Brimich achieved a significant milestone – the success of an SQF Certification at one of its many facilities, specifically at Abbott Court, a 100,000 square foot warehouse in Brantford, ON.

Since then, Brimich has made impressive strides in enhancing its operational capabilities and expanding its footprint in the Food Logistics industry. As of today, Brimich proudly holds four SQF programs across six certified locations, encompassing a staggering 1.4 million square feet of multi-temperature warehousing space in the GTA and Brantford.Brimich’s Kramer’s Way campus in Brantford is notably an SQF standout, spanning 540,000 square feet and offering itself as one of North America’s first SQF Select sites. This designation imposes strict requirements, mandating a constant and continuous state of audit readiness. This proactive approach not only reflects Brimich’s dedication to operational excellence, but also reinforces its reputation as a leader in the food logistics sector.

Further validating a commitment to excellent safety standards, the Martin Grove facility in Toronto, covering 370,000 square feet, recently achieved a remarkable milestone: a second consecutive year of receiving a 100% SQF Audit score during its re-certification audit. This performance underscores the robust quality management practices and unwavering adherence to strict food safety protocols and standards.

These achievements highlight Brimich’s evolution into being a trusted partner in the food industries supply chain. By continually investing in creating and maintaining impeccable standards, Brimich not only meets but exceeds strict requirements and standards demanded by today’s consumers and suppliers.

What is an SQF Certification and Why Does It Matter?

The SQF Certification is a rigorous and internationally recognized food safety management system that ensures product meets the highest standards for safety and quality throughout the entire supply chain.

Developed by the Safe Quality Food Institute (SQFI), this certification provides a systematic approach to managing food safety risks, beginning at raw commodities through final distribution and covering all facets in between.

SQF is something that we are very prideful of at Brimich, but SQF is so much more than just a badge of honour. It’s a highly strategic investment in reputation and trust.
Here’s why:
Consumer Confidence: In an age where food safety scares can spread quickly and across vast markets, consumers are increasingly wary of the source of their food. SQF assures consumers that product meets high and stringent safety and quality standards. This creates a circle of trust and confidence between consumers and businesses.

Market Access: With globalization comes increased competition and regulatory scrutiny. Many retailers and food providers require this certification to ensure the safety and quality of the products being handled. By obtaining the SQF certification you are able to open doors to new markets and business opportunities

Risk Mitigation: The consequences of a food safety incident can be devastating in many ways. In terms of human health and financial repercussions, SQF is a sure safeguard. It helps mitigate risks by implementing robust management systems that identify, prevent and address potential hazards before they escalate.

Continuous Improvement: The SQF certification process is not a one-time achievement; it’s a commitment to ongoing improvement and excellence. By adhering to SQF standards, companies are continuously evaluating and enhancing their processes. This drives efficiency and ensures high levels of safety and quality.

Human Health and End Consumer Safety: SQF certification plays a crucial role in safeguarding human health by ensuring safety and quality standards. Overall, it helps consumers and partners along the supply-chain enhance regulatory compliance, reduce waste, improve consumer trust, and reduce risk of contaminants, which promotes the overall efficiency and safety of food in the food supply chain

In today’s interconnected world, the need for stringent food safety standards has never been more critical. SQF certifications meet these demands but furthermore, it exceeds them, setting a benchmark for excellence in the food industry.

At Brimich, we recognize the importance of this certification. We have made it our mission to attain and maintain SQF certifications among all our facilities because this is a direct representation of the pride we put into our work, standards and safety at Brimich.

“I’m extremely proud of what we’ve accomplished and feel privileged to have been a part of creating and implementing the SQF programs at Brimich Logistics Inc. Great job team!” Rick Watson – Vice President, Food Safety and Compliance

In the realm of modern logistics, this promising solution is gaining traction worldwide. Here in North America at our Brimich Logistics Inc. facilities, this innovative approach is being implemented. As one of the first facilities in North America to adopt this system, we are proud to say it has helped to align with the growing emphasis on sustainability in our supply chain practices.

Industry Snapshot

From perishable foods to life-saving pharmaceuticals, maintaining precise temperature control throughout the supply chain is not just a preference; it’s a necessity. There are two dominating factors causing food waste in the Logistics and Supply Chain industry:

1. A lack of high-quality reliable Cold Storage temperature control
2. Inefficient handovers causing unforeseen breaks within the supply chain.

Brimich Logistics Inc. is dedicated to offering dynamic customizable solutions for clients, so that we can each strive in this area.

Brimich Logistics Inc.

Among early adopters of these CO2 systems is Brimich. Our very first Cold Storage CO2 facility was opened at 470 Hardy Road in Brantford Ontario in 2021. This adaptive strategy has become one of the most crucial value-added services for clients’ dynamic and ever-changing needs. To date, a portfolio of core high-profile clients are uniquely serviced at our 130,000 square foot CO2 Cold Storage facility in the Oak Park industrial area in Brantford, Ontario.

This initiative has lasting impacts on the client’s bottom line, efficiency within the Cold Storage supply chain and environmental benefits. Ultimately this service offering directly improves company bottom-lines and the quality of product the end consumer receives. Proper temperature control is vital for keeping frozen foods fresh as approximately 13% of all globally produced food is lost each year due to poor supply chain processes.

At Brimich, we strive to continuously adapt to this dynamic and vast industry. Our goal is to remain impactful and innovative in an industry where the end-consumer expectations of quality, time and offerings is ever-changing and deeply dynamic. Our passion is to focus on solutions that increase the durability of the supply chain processes our clients experience, while standing with integrity throughout the entire process.

Market Size: A Growing Giant

The Cold Chain Logistics market has been on a steady rise, propelled by the increasing demand for perishable goods worldwide. According to recent studies, the global Cold Chain market size was estimated to be over $200 billion in 2021 and is projected to continue its upward trajectory.

By 2030 the market is expected to be valued at $782.27 billion. Factors such as globalization, urbanization, and changing dietary preferences contribute to this expansion.

The Crucial Role of CO2 Cold Chain Storage

Within the realm of Cold Chain Logistics, Carbon Dioxide (CO2) as a refrigerant has re-emerged as a key player, revolutionizing the way perishable goods are stored and transported. Unlike traditional refrigerants such as Freon, CO2 offers several environmental and operational advantages. Its non-toxic and non-flammable nature makes it safer for both workers and the environment.

The importance of CO2 Cold Chain Storage extends beyond its environmental benefits. Its high cooling capacity and efficiency ensure precise temperature control, critical for preserving the quality and safety of perishable goods.

Moreover, CO2-based refrigeration systems are increasingly recognized for their reliability and cost-effectiveness. As businesses strive to optimize their operations and reduce operational costs, CO2 Cold Chain solutions offer a compelling proposition – combining performance with sustainability.

Using CO2 as a refrigerant is like recycling or delaying emissions. This is because CO2 is an industrial by-product emitted from factories. By using CO2 resources captured from this process, CO2 gas mimics environmental recycling processes.

Leading Regions in the Industry

While the demand for Cold Chain Logistics is ubiquitous, certain regions have emerged as leaders in driving innovation and adoption within the industry:

• North America: With a well-established infrastructure and stringent regulatory standards, North America boasts a mature Cold Chain Logistics market. The region’s advanced technology adoption and emphasis on food safety have propelled the growth of Cold Chain solutions, including CO2-based refrigeration systems.
• Europe: Europe stands at the forefront of sustainability initiatives, driving the adoption of eco-friendly Cold Chain practices. Countries like Germany and the Netherlands are renowned for their advanced logistics infrastructure and commitment to reducing carbon emissions. CO2 refrigeration technologies are gaining traction across Europe, supported by government incentives and regulations promoting environmental sustainability.
• Asia-Pacific: Rapid urbanization and changing consumer lifestyles in Asia-Pacific have fueled the demand for Cold Chain Logistics, particularly in emerging markets like China and India. As these economies continue to grow, the need for efficient and sustainable Cold Chain solutions becomes more pronounced. CO2 refrigeration systems offer a promising solution to meet this demand while addressing environmental concerns.

A Promise From Us

Not all logistics problems have the same solutions, which is why we work alongside clients to build a unique customized solution. With Brimich, all your CO2 Cold Chain needs will be met with a reliable representative who can combine local presence and global reach. We strive to bring simplicity and predictability, while also reducing risk and administrative workloads on your business.

We create solutions that are governed by a strong commitment to helping your supply chain performance and efforts towards carbon neutrality!

Updating and repacking products that would otherwise be a loss keeps them in the supply chain as viable, valuable stock. Instead of losing profits, let’s look at how a rework warehouse can help you along.

What is a Rework Warehouse?

During their journey through the supply chain, products may need to be reconfigured to maintain value to the end user. In order to comply with a new format, suppliers or distributors contract with a rework warehouse to make sure the products conform to revised standards.

Typically offered as a value added service (VAS) to their clients, many 3PL companies have warehousing services specifically set up for the process of reworking inventory. As a form of reverse logistics, this allows suppliers the convenience of not having to re-ship merchandise and recover what would otherwise be lost profits from dead inventory.

Why the Need for Reworking?

Not all outbound inventory makes it all the way through the journey from manufacture to final destination in exactly the same format from beginning to end. As a fairly common practice, reworking products involves reconfiguring them to make them suitable for delivery to the customer should the need arise.

For example, a product may be manufactured and packaged in a foreign country, then shipped to another country for distribution and final sale but have a problem along the way. For instance, products may arrive with an issue not suitable to the country of destination – such as a manual written in the wrong language. In such cases the customer may decide to not accept delivery of the product in its current state.

At this point, your options are to either ship the products back to the country of origin thus incurring significant costs and time delays, or have the products reworked in the country where they currently reside. By utilizing a local rework warehouse or similar service, your products can be reconfigured with the required updates to ensure compliance for your end customers.

Moreover, when you scale this up to a few thousand units for a few hundred stores, the task of reworking such a large amount of freight can quickly move above and beyond your normal operational resources.

Situations Where Rework Warehouses and Companies Can Help

Bundling slow selling products.

We’ve all seen extra products added as an incentive to make a purchase: “Buy this and that, get this for free!” or something similar. When a product’s sell-through slows or isn’t selling, a common method of spurring renewed interest is to offer a new configuration or bundle them together with better selling products to drive sales.

For example, two low-selling items can be combined into a single discounted package. Or selling a previously bundled item on its own as a loss-leader. To get this new format into the market, new “special offer” or “limited edition” packaging can be created and coordinated with your 3PL partner. They in turn rework the new product configuration with its own SKU, new packaging, labelling and a new barcode.

From a logistics point of view, these individual products sometimes need to be taken out of their respective warehouse locations then combined together with the new packaging.

Previously bundled products need to be reorganized.

Sometimes normally bundled products can have faulty or flawed components. For example, let’s say you have combined products usually sold as a set of six. However, you find out two out of the set are not in sellable condition. In such cases, a rework company can reconfigure the combination into sets of four with appropriate pricing, packaging and shipping information for re-entry into the market.

Product labeling requires an update.

Periodically, manufacturers may need to update item numbers or other product information. Labels may also be misaligned or product codes may not be scanning correctly requiring relabelling. In such cases your 3PL partner can print and apply new labels, or affix new labels you supply. In other instances, ‘blocker labels’ may provide a convenient answer by covering up the old labels.

A product component needs to be replaced.

Sometimes product components, even manuals as previously mentioned, need to be replaced for one reason or another. If your product has a piece that needs replacing, the existing package needs to be opened, the new piece or part replaced, then have the contents repackaged. With the appropriate directions and replacement materials, your 3PL service provider can perform the necessary operations to prepare the product for restocking and distribution.

The package is missing a component.

If you’ve ever assembled anything from a kit, you’ve probably experienced the frustration of not having enough of the right kind or right amount of fasteners – thank you IKEA. If, as a manufacturer or supplier, you find yourself in this position whereby human error has thrown you a curve ball, you can, after determining the oversight, coordinate with your 3PL to correct the problem.

Repackaging returned products for resale.

When products get returned, they need to be sorted and inspected. The end decision being either to update them for resale or dispose of them. For those products that still carry value and can be restocked and resold, a rework warehouse carries out the necessary steps needed to get them ready to re-enter the marketplace.

Products or packaging are damaged.

Estimated at nearly 11%, damage in-transit is a predictable occurrence within the supply chain. In other words we know it’s going to happen.

For example, boxes can get wet or ripped during shipment. If the product or your product’s packaging is damaged, your 3PL’s rework warehouse can repackage your products, apply any new labeling required, and get them back out for distribution.

In Summary

Any time products or packaging need to be corrected before their final destination, suppliers and manufacturers are faced with having to make an uncomfortable decision: either write off the problem and declare a loss, or engage with a service provider that can rework the products for resale.

From a cost per unit point of view, a company that carries out a rework project for a client will charge a small amount per unit to bring them back to re-sellable condition. While the process may take anywhere from a few days to a few weeks depending on the variables, the savings to the company in terms of extra shipping costs and time spent is well worth it.

Having a 3PL provider that can inspect and repackage merchandise to go back into “good stock” for resale saves the company time and money. By employing a rework service, the burden of updating flaws, damage or complete repackaging is offloaded.

In this sense, rework warehouses and product rework companies provide a valuable service within the supply chain.

Based in Southern Ontario Canada, Brimich Logistics and Packaging is one of the most experienced product rework companies in the region. To learn more about the benefits of our rework and other value added services, contact Brimich today.

If you could outsource in-house operations and, at the same time, drive growth, reduce costs, improve workflows and gross profit margins – wouldn’t you take advantage of it? Welcome to the world of value added logistics services.

What is the Value of Added Logistics Services?

Value added logistics services are those additional distribution and warehousing services, such as custom packing, cross-docking and quality controls offered by 3PL partners. These services allow businesses to outsource what would normally be in-house operations and offset associated costs. By taking advantage of value added options, businesses free up resources which can then be used to strengthen core competencies.

In a highly competitive industry such as the supply chain, many SMB companies realize that partnering with a robust logistics provider who provides solutions beyond transportation and warehousing is a top criteria in a growth strategy.

“Modern logistics starts in the customer’s plant, not afterward. Manufacturers have realized that it makes economic sense to transfer certain in-house tasks to a logistics company.”

Dirk Bütow, Global Key Account Manager at BLG LOGISTICS

Types of Value Added Logistics Services

Just as there are many different types of businesses, there are a host of value added services designed to enable the logistical needs of those businesses. From industrial to pharmaceutical, the food industry and cold chain requirements, customers in the supply chain rely on the specialty and expertise of their 3PL partners to extend their workbench.

For logistics companies that provide value added services, supply chains may focus on more discrete characteristics such as time sensitivities, price or warehousing capabilities depending on the value chain they serve.

A few examples of value-added services offered by logistics companies include:

• Cross Docking
• Co-packing & Assembly
• Product Rework/ Sorting
• Reverse Logistics
• Quality Checks
• Container De-stuffing
• Shrink Wrapping
• Custom Packing
• Labelling (UPC & Barcode printing)
• E-Commerce Drop Shipping Services
• Providing EDI to Customers (Standard or Customized solutions)
• Detailed management reports

Value Added Services Make Customers More Flexible

In order to provide a higher level of service to clients, 3PL and logistics companies tailor their services to meet the specific needs of their customers. The benefit of value added services to the customer is in a more efficient supply chain. The benefit to the logistics provider is in more business through diversification.

Value added activities in logistics enable customers to offload in-house operations that are restricting growth thereby allowing them to reallocate resources that improve or maintain market competitiveness.

For instance, pre-assembly is a typical value-added service in logistics. If you employ a JIT strategy in your business, partnering with the right 3PL provider can facilitate a cost effective method of  forwarding partially assembled goods through the supply chain without having to switch carriers.

Furthermore, workers that specialize in pre-assembly are employed within the managerial sphere of the logistics provider. For your business, this further removes the burdens attached to human resources by not having to maintain staffing for these outward services.

Value Added Services and the Supply Chain

The globalization of sourcing and manufacturing has facilitated the need for more diversity in logistics. Just as early freight forwarding evolved into logistics, value-added services became a natural extension of evolving supply chain opportunities.

Where value creation was traditionally held as an internal control by the customer, the availability of cost effective outsourcing shifted value creation into becoming a collaborative effort with an external 3PL partner.

Businesses with optimal supply chains have 15% lower supply chain costs, less than 50% of the inventory holdings, and cash-to-cash cycles at least three times faster than those not focused on supply chain optimization.

Logistics Bureau

Depending on the nature of your business, key activities may require optimized trucks and container loads. Or you may require co-packing, repacking or custom packaging from your logistics relationship.

One value added service for instance, may involve re-packing goods that arrive in large batches from a distant location. The repacked goods are then sold in smaller batches at their final destination.

Another value added service may involve true diversity in customer fulfillment. For instance, a 3PL partner can both manage and fulfill B2B and B2C orders from a single pool of inventory. In a market where space is at a premium, avoiding the expense of warehousing for what would otherwise be distinct inventory sets provides an essential advantage.

Value Added Services and Sustainability

By combining transportation routes that would otherwise involve another service company, a logistics provider that offers a value added service solution can streamline an entire leg of a supply chain. For instance, by eliminating product transports, customers enjoy the benefits of more efficient transport and add to the sustainability of the supply chain itself.

Trust and Information

Like any partnership, a 3PL-client relationship works like marriage, therefor there must be a high degree of trust and the sharing of information between the two parties.

It would be fair to say a high level of trust is not only the anchor of the relationship, it’s also a prerequisite for the creation of value-added services. Meeting deadlines and expectations ensures success and facilitates the easy sharing of sensitive information. For instance, customer information may be required by a logistics provider to customize services and improve process efficiencies.

Final Thoughts

Nobody can predict the future with absolute certainty. Take the Pandemic for example. We would like to think our existing infrastructures and supply chains are robust enough to weather minor hiccups, and perhaps they are, but these are evolving technologies in a world currently experience a bullwhip effect after a near dead-stop.

The shortage of truckers and the start-stop jerkiness of the availability of products has been working its way through the supply chain for a number of years now.

Yet, according to a recent report from Statistics Canada on rental space in commercial markets:

Compared with the fourth quarter of 2020, commercial rents were up 3.3%, supported by increases across all building types: industrial buildings and warehouses (+4.2%), retail buildings (+3.8%), and office buildings (+1.8%).

These positive growth numbers would seem to reflect a continuous and expected demand. As for the supply chain hiccups, they may just be growing pains.

Will the wrinkles smooth out eventually? Hard to say. But being able to share the load of value creation for your customers through good logistics partnerships makes sense. Plus, partnering with a reliable, environmentally responsible 3PL provider who offers value added services tailored to your needs has the added benefit of increasing sustainability.

To find out how Brimich Logistics and Packaging can help your business grow through value added services, contact us today!

In a logistics industry that’s constantly evolving, how do pick and pack services remain an integral part of serving both businesses and end-user customers?

Small and medium-sized businesses all aim to be successful, but with new success and technologies come new problems. How do you ensure that your product is packaged accurately for delivery?

As we know, the fulfilment process is very sensitive, and the smallest mistake in packing or labeling can result in an item not being included, breaking or not reaching its proper destination. This is where modernized pick and pack services come to your aid.

The Obvious Question: What is a Pick and Pack Service?

The pick and pack service is simple in principle – products are picked then appropriately packed, yet it is a crucial step in the order fulfilment process. The first steep is collecting (picking) all products from their respective warehouse locations for a customer’s order. The next step is properly packing these items for shipping to the customer.

The underlying critical factors that influence the success of the process are speed, skill and accuracy. Inefficiency in any one of these areas will degrade customer experience down the line. For instance, if an order arrives damaged, late, or contains the wrong items, your customers are less willing to do business with or recommend you again.

In other words, through pick, pack and ship services, sold items are picked, packed safely and shipped with the correct shipping label and invoice.

The Pick and Pack Fulfilment Service at Work

The moment a customers’ order enters the system the picking process begins. Depending on the type of order, products are picked by the piece, in batches or in waves. With the help of an advanced warehouse management system (WMS), inventory counts are optimized resulting in efficient picking and faster product flows between storage and dispatch.

While modern technology certainly helps mitigate the chance of human error, manual quality control checks for quantity and quality are still used top monitor overall fulfilment accuracy.

Types of Picking

The picking process itself can be broken down into four main types:

• Piece or discrete picking –  As an or comes in, a picker handpicks each product to assemble a complete order.
• Batch or cluster picking – Similar to piece picking with exception that multiple orders are done all at once instead of one at a time.
• Zone picking – Items are often warehoused as similar types or in zones. Employees within these specific areas pick one order at a time within that area.
• Wave picking – A combination of both batch and zone picking. Employees stay within a given zone and pick more than one order at a time.

Specifics of Packing

Efficient packing starts with placing the ordered items into a suitably sized box. The box is then lined with packing materials to ensure the products reach their final destination in one piece.

Furthermore, packing should keep an order within the smallest number of boxes on the whole and make use of the most suitable type of packing material(s) for each product.

Maximizing these packing specifics results in reduced shipping costs, order accuracy, and a more cost-effective shipping process.

An ideal warehouse will be able to turn around orders quickly with a high rate of accuracy. Using better levels of quality control, the shipping process runs smoother and helps foster a high level customer satisfaction.

Pick And Pack Features And Benefits

Using a pick and pack service offloads an entire system from your business which in turn, allows you to concentrate on growth and further opportunities.

In other words, trusting a picking and packing fulfilment partner ensures better levels of customer care without the distractions of maintaining an in-house fulfillment process.

Features of a good picking service include:

• Multiple, strategically placed locations
• Use of a state-of-the-art warehouse management technology
• The ability to manage discrete, batch, cluster, wave and zone order picking capabilities
• Integration with popular ecommerce platforms and shopping carts
• Capability to warehouse, pick and pack a wide range of products
• Customizable srevices to suit individual client needs

Benefits of integrating with a pick and pack service include:

• Cost improvements throughout your supply chain
• Improved order-to-cash cycle time
• Scalability
• Increased supply chain responsiveness and adaptability
• Access to specialized warehouse process technology, equipment, and expertise

There is an Order Fulfillment Opportunity For Every Business

From large B2B operations to small entrepreneurs, a business that involves customer order-fulfillment can leverage the experience of picking and packing services without having to invest in warehouse facilities and equipment.

According to a recent market report, the pick and pack services industry, with the aid of automation, is set to reach over $106 billion by 2029.

Outsourcing these warehousing services to an experienced logistics partner also allows you to scale your inventory up or down as necessary.

Types of businesses that utilize pick and pack:

• Wholesalers and distributors
• Entrepreneurs and Ecommerce merchants
• National retailers that require centralized distribution
• Omnichannel retailers
• B2B and B2C suppliers
• Fast Moving Consumer Goods (FMCG) suppliers and retailers
• Parts and equipment service providers

Pick And Pack Warehouse Services Help Create a Complete Fulfillment Solution

With over 50 years experience in the supply chain industry, Brimich offers picking and packing as an integral part of the industries we serve: food and beverage, agricultural and chemical, retail and wholesale. With our state-of-the-art facilities located in Brantford and Etobicoke, we have the expertise, skills, and the technology to handle your businesses pick and pack strategy.

Whether your business is simple or complex, Brimich Logistics & Packaging offers a complete 3PL service portfolio that fits your needs. All you have to focus on is ensuring that the orders keep coming and your business continues to grow.

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:

1. 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.
2. 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.
3. 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.
4. 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.