Contract Packager and Packaging Equipment: The Essential Factors
What is all about contract packaging is the constant satisfaction from your client and it will bring reputation in the long run.
Topics: contract packaging, copacker, contract packer
Questions to Answer:
- Why do companies contract with copackers?
- How do you benefit from working with contract packagers?
- What makes a contract packager reliable?
A contract packager is known as a copacker. This is the third part to which companies such as food processing and manufacturers, cosmetics, pharma, and beverages companies outsource their process of packaging.
Whether you are a manufacturer that contracts a copacker, or vice versa that you are a contract packaging company looking to expand your business, you are developing a partnership. And it is essential to understand the ABC of this business.
Why Do Companies Need Contract Packaging?
While some companies look to facilitate their management cost by outsourcing their packaging to a third party, the most common case is that start-up businesses and small companies who are with limited facilities, financial status, and personnel to invest in their own workflow of packaging are in demand to have somebody out there to do these tasks.
The fact is that installing equipment, setting up a site or facility, employing people, training and management, all can be a large burden to an SME or start-up. And here are the reasons why businesses have to contract copackers.
A contract packaging company can solve your problems around your packaging issues:
- You do not need to purchase packaging machines at your site and hire technicians and operators
- Taking avail of the copacker’s national network (probably they have branches over the country), you can facilitate your distribution and supply chain
- Copackers work in large amounts with transport. This will save you logistics costs
- You do not need to upscale your business, while can be dangerous in some situation
- A short-run demand fits better outsourcing the work to copackers
What Defines a Reliable Contract Packager?
Offering reliable contract packaging service is the key factor to retain a loyal customer portfolio. To become a trustworthy copacker that clients will repetitively come for service, a contract packaging company must be flexible, ready with a stock of packaging equipment in well status, along with a team of experts to discuss the packaging details with your customers.
1. A Full Stock of Packaging Equipment with Minimum Downtime
A contract packaging company earns bread based on business volume. To put it in another, the longer and everlasting your packaging machines stay operating and in uptime, the more you will earn your margin.
On the contrary, downtime will not bring any cash flow to your business, rather, it suggests more costs around maintenance and technical support.
A reliable contract packaging company must be ready with a full range of packaging machines and equipment, all kept in fine status and ready to go full steam running, with minimum stops and errors occurring during the operation.
As well, the contract packaging company must be professional to elaborate a forecast of scheduled maintenance, and organize back-ups, so as to minimize downtime.
To put it in a nut, to keep in disposal a reliable stock of packaging equipment, the copacker should:
- Be right with a full range of packaging equipment
- Be able to elaborate on a reasonably scheduled maintenance plan to avoid downtime
- Get prepared with machines for backup to eliminate downtime
- Keep their packaging equipment working full steam ahead and round the clock
2. Be Visionary and Reasonable with Choices of Packaging Equipment
The cost of setting up packaging equipment will be the base on which copackers anchor the price of their services.
You may turn to a well-constructed packaging machine from a famous manufacturer, with a considerable start-up investment, in order to provide an unexceptionable quality of service. The price rockets, of course. And the recovery term of your investment is longer.
You may also turn to cheap packaging equipment, so as to minimize the start-up and get your investment back as soon as possible. But bear in mind, being cheap often equals mediocre quality. A cheap pile of steel can frequently cause problems and will place in danger your business with your customer.
The key to this factor is to make a reasonable balance between your set-up cost and the quality of your packaging equipment. Look into the pros and cons, then impact in the short and long run.
3. Ergonomics and Safety: Concerns around Employees
Companies that do not attach importance to their employees’ safety and ergonomics at their facility will bump into problems sooner or later.
Injury of employees will lead to a series of financial or legitimate problems. This is not a problem only for the copacker, but the aftermath affects their clients as well.
From the perspective of delivery, though packaging machines are the primary factor of productivity, absenteeism caused by injury will still drag and lag the productivity and then the on-time delivery.
On the other hand, companies that don’t care about people are definitely not trustworthy partners. If money is only what they care about and the rest to neglect, so will they do the same thing to their clients.
Why Packaging Equipment is Essential to Copackers?
Hand packing is absolutely not what copackers rely on.
A reliable contract packaging company must be eager to invest in packaging equipment so that their capacity is in line with the latest technology.
Just as packaging equipment means to manufacturers, to copackers packaging machines are also an essential part of their business.
Copackers should get retired their old machines. Contract packaging companies that stick to legacy machines will find themselves trapped in frequent maintenance. This will significantly affect their productivity, as well as raise their cost.
In general, copackers will benefit a lot from well-constructed packaging equipment:
- Up-to-date packaging equipment keeps copacker as flexible as possible to attract new orders
- Up-to-date packaging machines are more efficient in throughput, which will in turn reduce your cost
- Advanced packaging equipment differentiates a copacker from others
Are you a Copacker in need of Packaging Equipment?
No matter you are a contract packaging company or a manufacturer, our experts are at your disposal to give advice on your purchase of packaging machines and equipment.
Contact us by firstname.lastname@example.org or call +86 139 588 12103