What Is Contract Packing?

  • By admin
  • On 18 Oct 2018

Contract Packing (Co-packing) is actually used for a wide variety of commercially available products. When an item is manufactured or imported in bulk it may require further refinement to make it acceptable for retail sale. For example, batteries can be imported in bulk and then repackaged into smaller retail size packs. This produces a considerable saving on freight costs as wasted space in containers is an expense that everyone tries to avoid. To repack the batteries you will need a backing card, a blister, and a sealing machine. Also, you will need staff to manually assemble the items.

You may have an item you have made but need to pack it in sachets or blister packs for commercial sale. It may be an item has obsolete or incorrect packaging when it arrives from the manufacturer and it would in most cases not be economically viable to send the items back.

This is where the Contract Packager comes in. They will have ready access to printers, plastic for labor and a labor force that is used to this kind of work. They will also have various sealers to accommodate the processes needed. This allows the customer to concentrate on the more profitable areas of their business.

Contract Packaging companies can vary greatly from providing very basic collation to complicated and/or specialized assembly work. They may also supply warehousing facilities and the ability to pick, pack and dispatch orders for the customer.

They will also vary in the type of work that they can handle. Some of the specializations are pharmaceuticals, food stuffs, poster and document collation, chemicals, electronics, industrial and cleaning products.

Contract Packing should achieve a result that will save the customer money by being more efficient than what the customer could achieve themselves. As there is specialized packing equipment this also represents a cost saving.

When selecting a contract packager, make sure that they have done similar work before and be sure to set some performance KPI’s in place. Clearly define the time frames that are required and the standard that needs to be achieved. It is also essential that the goals are defined and the end product has been sighted and approved. This will mean careful checking of printed material, (both backing cards and any inserted information), any blister materials and the final packing of the item. It is no good approving it and then finding the barcode is wrong.

Overall a contract packer (co-packer) should be able to provide the customer with a cost saving and an improvement in productivity.

Article Source: What Is Contract Packing?