08 Sep Co-Packing as a Competitive Advantage
Co-packing, or contract packaging, has become a viable manufacturing option for many companies that do not have the capabilities to do the process effectively themselves. These packaging options provide companies a competitive advantage by allowing them to take large scale orders without having to scale manufacturing capabilities or staff.
Co-packing has become a competitive advantage for manufacturers particularly in the health and pharmaceutical markets and the food and beverage industries. This process enables companies to fulfill large orders without increasing employees or equipment.
Improving Presentation to Boost Sales
Regardless of your industry, powerful packaging can increase sales. The packaging itself as well as its overall appearance can create a competitive advantage as many consumers impulse buy based on how a product looks. Packaging should be neatly assembled and easy to open so the consumer can access their product.
Private labeling offers another opportunity to gain a competitive advantage. A co-packing partner that offers private labeling options will aid in reaching a larger audience through multiple brands. Often, a privately labeled product can be sold for less with no reduction in quality. Large co-packing companies have their hands in multiple markets which increases product visibility.
Appealing to the Environmentally Conscious
Consumers as a whole have become a lot more aware of how goods are packaged. Do the products use recycled materials? If so, what percentage? Since co-packing reduces the amount of waste from packaging, and the manufacturing process’s carbon footprint, consumers are more inclined to buy your product over one that is not. It is an added bonus if you co-package your products with recycled materials, in which case it should be indicated on the label.
Reducing extra packaging means lighter shipments so more product fits in warehouses, shipping pallets, and retail shelves. Lighter packaging materials is a major shipping cost-saver as well. In terms of transportation, smaller trucks are able to be used, and more packages can fit on a truck.
Third-party co-packing companies have experience, resources, and staff to make the process easy and efficient. A manufacturer that chooses to co-pack with an outside company will reduce costs because of not having to purchase any additional equipment or materials. A co-packer will make sure that all packaging, material, crates and pallets are optimized, further reducing costs.
These companies are able to produce lower volumes or slower production speeds, which reduces lead times and allows orders to be filled faster. Lower production expenses in addition to lower transportation costs leads to bigger savings.
As manufacturers in Indiana, Kentucky, and Ohio try to differentiate themselves from the competition, co-packing becomes a more important factor in boosting visibility and sales for products. The operational capabilities of the co-packer allows you go gain a competitive advantage while reducing expenditures.