Benefits of Contract Packaging

Blog_ContractPackaging_2019-04-03-04

Custom, efficient contract packaging services that fit your business needs.

Your products are a direct representation of your company’s hard work. You want it to be released into the marketplace safely and efficiently. A contract packaging company that can create a custom solution for assembly, pack-out, and distribution, is the perfect last-step partner. Your contract packaging partner can essentially be a quasi-extension of your company, providing special services, capabilities, and expertise to get your product into the hands of your consumers safely and efficiently. 

Services provided by a contract packager oftentimes happen after the design and printing of your display or package. However, when possible, having the team involved from the start of the project results in a much more successful outcome. Not only is a contract packager responsible for warehousing your product, packing it out, and delivering it, they can play a role in determining the best scoring, gluing, and perf for the package itself in order to speed up the assembly of the package or display.

Creating a custom packaging plan, from start to finish, will ensure your product reaches the consumer in the most efficient and impactful way. Utilizing a contract packager can optimize the packaging process, provide efficient solutions and shipping options for your company, and provide the expertise that may be lacking.

Contract packaging services

Contract packaging tasks can be done in-house by the brand, outsourced to third-party vendors, including the packaging/display manufacturing company, or be left to the retailer. Determining the best resource is dependent on which services are needed. There are many services that make up contract packaging—some of the most popular options include assembly, pack-out, and kitting.

Display assembly involves putting all the parts of a display together, including shelving units, and headers. Assembly can take place at the store level, or before delivered to the stores. If done by a third-party service provider, the display is then put into a shipper for distribution to the retailer, or distribution center. If a display or package is complex and you want to ensure it is set up properly, using a contract packager will provide that security. 

Pack-out and kitting both involve the product being packed into the retail packaging or displays. Sometimes varying products are bundled, or packaged together. These services require the product to be in the hands of the service provider, therefore warehousing logistics and security is imperative. It is also important that the appropriate assembly lines are set-up for the most efficient result.

Using a third-party contract packaging company ensures that the project is customized according to the product and the packaging. The services available under the umbrella of contract packaging are numerous, and being confident your project gets the custom solution perfect for your product is key. Bennett offers a wide variety of services including:

  • High-speed vision inspection
  • Shrink wrapping
  • Laminating
  • Cartoning
  • Bottle labeling
  • Palletization

You can learn more about our contract packaging services and capabilities on our website.

Optimize the packaging process with contract packaging

Your company’s focus is to create the best product and get it into the marketplace safely and efficiently. Speed-to-market can be increased when outsourcing labor to an expert. Full-service contract packaging partners offer the machinery and workers necessary to ensure your product not only is secure but also looks immaculate within its packaging. 

Experts in this field work with a flexible and experienced workforce, and continually invest in the latest assembly line equipment. Contract packagers strive to optimize their space and labor, while also understanding the product and packaging they are working with, in order to customize the best work stations for the project at hand. The team is also responsible for quality checks before anything is palletized and ready for shipment.

Outsourcing your packaging may be concerning because you know your company best, and you want to maintain control. But partnering with the right co-packer, who understands and respects your brand and vision, will work as an extension of your company, and ultimately save you money and time.

Contract packaging offer efficient solutions

Why waste money on machinery that will only be used minimally and wastes space when it is not being used? A contract packaging company already has the machinery needed and the knowledge required to run them efficiently. They also have up-to-date technology, providing the most high-quality and efficient solutions for your package.

If you decide to package in-house, your two options are to hire more staff or require specialized training for your existing team, and both of those can be dangerous to your company. Utilizing a team that knows the industry and the machinery will keep company employees from being too overwhelmed. Outsourcing contract packaging to a team already dedicated to creating the best solutions will not only keep labor costs low but also keep company morale up.

Packaging products is not a small process. It requires time, knowledge, and space to handle large projects. A contract packaging company with the facility equipped to handle packaging will be streamlined and efficient.

There are many solutions to keep your packaging process efficient, but studies show contract packaging helps lower costs. According to Mordor Intelligence, operational costs can be reduced by 7% to 9% due to optimized machinery, including machinery-maintenance, and labor costs.

BNPK_Blog_OperationalCostsChart

Source: Mordor Intelligence

Contract packaging shipping options

With contract packaging, there are several different shipping options available with pros and cons to all. The most common options available are Knocked Down Flat (KDF) to the consumer, KDF to another supplier, or full contract packaging in-house.

Shipping KDF back to the customer means the printer will print and ship the packaging unassembled. With this option, the provider will need to assemble and pack-out the packaging in-house. The benefit is that the provider gets hands-on control of how the product will look when it reaches its final destination.

KDF to another supplier means outsourcing to another company with the expertise to specifically pack-out and assemble your packaging prior to shipping. If the client already has a company trusted to master this piece of the puzzle, then this shipping option will provide consistency.

The final option is to utilize full contract packaging services in-house. Keeping the printing and assembly in one location can minimize the number of people involved in the process and ensure the product will look how it was intended. Merchandise is sent to the contract packager, and the display is assembled and filled with the product, then it would be shipped directly to retailers or the provider’s distribution center.

Leave it to the contract packaging experts

The contract packaging industry is projected to grow at a CAGR of 11.51% before 2023, according to the Washington DC Herald. A growing industry means growing technology and greater capabilities to think outside of the box. Incredible and accurate displays require the knowledge of technology capabilities as well as knowledge of what is being done throughout the industry.

BNPK_Blog_ContractPackagingGrowth

Source: Washington DC Herald

Your product is your specialty, and it is important not to stretch your company too thin. Use the expertise you have to create a product that consumers want to buy and leave the packaging and distribution of your product to a company with experience specific to that industry. It’s the contract packager’s job to get your product perfectly out into the market.

With constantly growing technology in the industry, a contract packaging company is knowledgeable about the capabilities and limitations that might exist. They live and breathe retail displays, P.O.P. displays, and packaging so they are aware of what is being done in the industry and what can be done to help your product stand out.

Certain packaging requirements need to be followed to ensure your product reaches its destination safely and to keep its integrity in the retail world. A contract packager has extensive knowledge of the regulations required to help your product meet standards, and live up to your brand. It is important to select the right company in order to ensure your partnership will last and be the best option for your product.

What to think about when choosing a contract packager

Now that you understand the extensive benefits of outsourcing to a contract packaging company, it’s important to do your research to find the right fit for your company. Find a company with the experience to get your product out the door in a timely fashion yet still focus on the quality of the display. It’s important to know displays they have handled in the past, what they pride themselves on, and if they have a specific style.

Do your research on the location of your contract packager as well. It’s essential that they are capable of getting your product where it needs to go and able to customize the shipping and distribution solutions. Freight is a huge factor because you need your product to be shipped to the most convenient location for as little cost as possible.

The scale of your project will determine the capabilities required to meet those needs. A contract packager needs to have the machinery, team, and facility available to create the best display for your product. Consulting with a company to get a better understanding of the type of technology needed will provide a better idea of what machinery is necessary.

The last thing you need to look for when choosing a contract packager is a company that will be your partner through the process. You want to build a mutually beneficial relationship that ensures your ideas can be brought to life. Your product is your pride and joy, so you need a partner that takes the same amount of pride in their work as you do.

Bennett believes in high-quality standards mixed with custom plans to ensure your product gets out efficiently but correctly, every time. We have a fully-trained team available to create the perfect plan for your product and act as an extension of your company. Learn more about our facility and industry-leading capabilities on our contract packaging page.

 

Check out our industry-leading capabilities on our contract packaging page

Bennett is more than a vendor. We’re your partner.

Bennett is a premier packaging and retail displays manufacturing company striving to protect and promote our clients' products with customized corrugated solutions. With our fully-integrated design-to-delivery process, we can be the single supplier source. We are an award-winning manufacturer of virtually anything corrugate. We offer everything from plain brown shipping boxes to sophisticated, high-graphic printed point-of-purchase displays, and everything in between.

Read other helpful articles:

Categories

Learn more about how our retail solutions can help