A contract packager is an essential cog in the business wheel and offers vital services to large and small companies. Businesses outsource their contract packaging for a variety of reasons, but at the core lies the need for efficiency, cost-effectiveness, and reliability.
Contract packing is where a company provides packing and packaging services for a business, including shrink wrapping, blister packing, liquid packing, and fragile item packing. Contact packagers may also work with a business to provide strategic packaging advice and guidance. Here’s why contract packagers are so popular with companies in all sectors.
Not Enough In-House Capacity
It is tough to run a business and have the physical and monetary capacity to also run a packaging and fulfilment section. Not being able to handle volumes of packing and packaging is a significant reason why companies outsource this crucial task. Packing takes up a lot of space and resources. It is more cost-effective to outsource the job unless you plan on making it a major part of your business plan in the near future.
You may have some in-house packaging capacity, but you cannot run anymore since you are using all of your equipment, and you cannot afford to buy more. You may have prioritised your packaging equipment for something else.
Handle Promotional and Short Product Runs
Contract packagers are useful to be able to handle rush orders and bulk orders at certain busy times of the year. You may have a test run of a product, or promotional items to be distributed; these are best handled by a contract packager that can scale its activities up or down as necessary. You benefit from not having to purchase expensive items for packaging that you will only use for a short period. It also makes sense to use a contract packager when you regularly use different promotional packages.
A packager is also useful for when you are running a new packaging scheme that your existing packaging manufacturing equipment cannot handle. Rather than spend money upgrading your system, you can simply outsource the additional packaging requirements to someone else.
Products Need Complex Packaging
You may be experienced in packaging regular products, but unsure how to process and pack more fragile items, or require specialist packing. Products with regulatory guidelines for packaging need an experienced packager in order to stay compliant in the industry. Rather than upgrading your system, choose a fulfilment company to deliver their expertise on your complicated packaging job. Contract packagers have the skills and experience you need to keep your items safe in transit.
You Don’t Have the Staff
Your personnel who may have handled packing in the past are wanted for different jobs. Or you may be downsizing and therefore letting staff go. A contract packaging firm is a cost-effective way to hire trained personnel without any of the additional expenses like benefits, holiday, and sickness pay.