As a consumer packaged goods company, you’re all too aware of the challenges in preparing your products for shipping. To get items ready for shipping, you not only have to produce the products in a timely manner, but also get them ready for shipping through your packaging process. This process of packaging takes additional staff and more floor space that many companies just don’t have. In this article, we’ll examine the benefits of outsourcing the packaging of your goods and why it makes good business sense.
Contract packaging companies are hired to handle the packaging, assembly, warehousing and distribution of goods on behalf of other companies. Contact packaging companies can handle some or all of these tasks depending on the capabilities that they have. By outsourcing this part of product fulfillment to contract packaging companies, you get to leverage the efforts of these specialized companies and maintain the high quality of your overall delivery to the customer.
Leverage your company’s investment
The main reason you’d want to use a contract packaging company is because you are able to leverage the efforts of another company that is specialized in packaging. The process of packaging, assembly, and distribution is complex and time consuming. In addition to the above, there are already many processes that your company has to deal with. Contract packaging companies on the other hand have this one task as their mission so they’re better positioned to handle the complexity. Leverage in business means that you would assume less risk with a much higher gain which is why it makes sense to outsource your packaging needs.
The business world in which we operate today is one driven by technology and innovation. This innovation is happening at a rapid rate compared to just 10 years ago. Businesses that cannot adapt fast enough are left behind, struggling. By outsourcing to contract packaging companies, you gain speed and flexibility. This is especially true for businesses that have seasonal goods. Contract packaging companies have systems in place to adapt to different challenges at a moment’s notice, keeping your company focused on your core offering which is your line of products.
Low Operational Costs
Reduced operational costs is another great benefit of outsourcing packaging to contract packaging companies. If you were to handle packaging within your company, you’d need to invest in more manpower, floorspace and warehousing. While these expenses may not be unreasonable, they are not the best way to go about keeping your operational costs low. When you outsource to a contract packaging company, your costs are well defined and known beforehand, which makes it easier to account for.
Operational costs related to packaging prevent you from investing in other areas that need the funding most, such as product design, research and development or even training. To put it another way, when you decide to handle packaging in-house you miss out on truly growing your company through the strengthening of your core offering. Imagine if you could increase product design or R&D by 5% or 10%?
Compliance & Sustainability
More and more today, companies need to comply with various regulations and standards ranging from food safety to recycling and clean energy initiative. The process of getting compliance and staying compliant is usually a long and expensive one, which can present a lot of hurdles for many companies. Thankfully, many contract packaging companies have already worked on and established the compliance required. All you have do is connect with the right contract packaging company that has the compliance that your products need.
Contract packaging companies allow you to implement sustainability and environmentally safe efforts, allowing you to reduce your company’s carbon footprint without increasing your financial obligation. Packaging companies with compliance expertise bring vital expertise in packaging design, packaging workflow, and qualification of material used in packaging.
On a Path to Better Business
Outsourcing your company’s packaging to a reputable contract packaging company should not be viewed as a release of control but rather as a partnership that, when done right can push your business forward. In this article we’ve looked at the main benefits of outsourcing your packaging to contract packaging companies and hope you’re well informed.
If you’re looking for an experienced contract packaging company, give us a call. XPress 360 is an all-in-one solution packaging company with flexible capacity to help you tackle rush projects or spikes in volume. We offer contract packaging and assembly, printing, and promotional products. Give us a call today and we’ll answer your questions.