As consumer packaged goods companies find ways to maximize revenues in as many retail channels as possible they look to their supply chain partners to be more flexible to carry some of the load. Secondary packaging and co-packing are valuable services when several channels can require multiple product variations. More skus, mean more to manage.
In the face of changing products and new or developing channels what is the best way for channel partners to add value? There may be thousands of answers to that question but fundamentally there are two basic ways to add value to the manufacturers (unless you have a crystal ball, then there would be 3:)) Since secondary packaging and co-packing partners modify or slightly change the base product they are left with creating value by either adding upstream or downstream services or creating speed, flexibility, and efficiency in their current capabilities (operational excellence).
Adding upstream or downstream services like logistics, printing, fulfillment etcetera creates solutions that are closer to the “one stop shop” approach which of course has its value in reduced coordinating costs, single source accountability, as well as value in a reduced vendor base. Operational excellence provides that the business even if its limited in capabilities when compared to the “one stop shop” is the very best at what it does whether its focus is low cost, speed, flexibility, quality or a combination.