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Contract packaging (which may include primary packaging and secondary packaging) is when a business hires another company to manage their packaging and supply chain needs. This may include primary and secondary packaging of finished goods, point-of-purchase display builds, inventory management, and distribution to market or directly to the consumer.

Contract packaging companies have the ability and expertise to fully manage all aspects of your supply chain needs and the needed labor force requirements. Outsourcing your packaging line allows your company to save money by negating the need to purchase lots of expensive packaging machinery and materials.

Choosing the right contract manufacturer can be a long and arduous process. And there are many factors to consider, many questions to ask.

• Capability– Make sure company has demonstrated performance that matches your expectations.
• Experience– Is the contract manufacturer experienced in your industry? How many years?
• Capacity– It is important to understand what the vendor is capable of handling.
• Pricing– Are there hidden costs?
• Location- Will final assembly be in a location suitable to your company?
• Personnel– Remember, manufacturing rises and falls on people. And this encompasses the people at the top of the operation all the way to the bottom.