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Things You Should Know About Contract Packing

November 25, 2022 by Jarred

Proper packing of products is critical to businesses. However, only huge companies can afford to package their products in-house. Most companies find that outsourcing the job to a contract packing provider is more effective and efficient.

By definition, contract packing or co-packing is assembling and packing a manufacturer’s products into secondary , such as wraps, bags, packets, or boxes. A contract packer usually prepares products for retail. However, they can likewise adapt product for various purposes, markets, or retailers.

Moreover, contract packers can also provide quality-checking of products from suppliers, barcoding, applying new labels to existing , or redesigning and printing the product for promotional product sampling.

What companies and products use contract packers?

Companies from various industry sectors use contract packing to meet different needs. Most products they handle are sent directly to consumers through retail and wholesale outlets. However, contract packing can also do product samplers for trade shows, exhibitions, and mailouts. Food and drink companies, cosmetics and beauty products, household goods manufacturers, pharmaceuticals, and publishers are some of the usual products that use contract packing. In addition, some companies use contract packers to launch new products or rebrand existing stock.

Benefits of contract packers

Given the dynamic and competitive environment of the commercial and retail markets, companies need to improve their supply chain and have their products reach their target consumers faster. Therefore, they need to move their products quickly where demand is highest and have enough stock when there is an increase in demand.

Forming a partnership with a reputable contract packing company could be a wise business decision when you are in the wholesale or retail business. Here are some of the important benefits of hiring a contract packing provider.

Access to their knowledge and expertise

Aside from their training, workers in contract packing companies work with different clients. Thus, they accumulate knowledge and enhance their expertise in handling various products. They use the lessons they learned to create innovations, processes, and materials for existing and new clients.

Agile and flexible service

A contract packer can immediately assess the deliverables, implications, and complications of any contracted packing job using automated machinery. On the other hand, they can also advise their clients on what to consider for products requiring hand packing.

Centralising operations and storage

You need space if you plan to do product in-house. Aside from the space for operations, which includes the installation of machinery, you also need a storage facility. When you work with a contract packer, they can store your products until they need to be shipped. In addition, they can provide distribution services, product inventory, quality assurance, and logistics.

Better choices in  

Contract packers have several packing machines, materials, manpower, and storage facilities that they can use for your products. They can utilise them for your specific needs, such as creating sample products for trade exhibitions, pre-product launches, or testing new materials.

The information and advantages listed here are not exhaustive. A contract packer offers more services and advantages depending on their specialisation. Ensure that you find the right one that fits your products’ requirements.

 

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Filed Under: Business

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Hey I'm Jarred, the editor of We Are Augustines. My favorite topics to cover are music and home decor - but we do a ton here at our little online magazine. We also cover fashion, lifestyle and much more.
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