Similar to outsourcing various products and processes, working with a contract packager requires a relatively small investment. A primary goal of any business is to increase revenue while reducing cost as much as possible, and still providing a quality product, in order to maximize profit. A facility can be one of the largest fixed costs for any business so when you choose a contract packager, they already have the manufacturing facility in place – eliminating this investment.
Staying current with technology is essential to remaining competitive for firms that focus on a single piece of the value chain. As technology continually improves, many contract packagers will increase the amount of automation in their facility – this would also help reduce costs for you. The wide range of equipment would also mean a number of new packaging solutions/capabilities. When evaluating whether a contract packager is for you, ask for a tour – ensure their equipment is up to your standards.
Those that work in contract packaging have a high level of expertise (specialization) as it pertains to innovative packaging solutions. Contract packagers are aware of the expectations that come with specialization and will ensure you are getting the best insight into the most efficient and innovative packaging solutions. When packaging is outsourced to a contract packager costs are greatly reduced because your company can focus on the in house functions it does best.