You understand what contract packaging is. You also know what benefits it has to offer you. You must have researched a few companies and identified a handful of vendors who can work within your budget and niche market requirements. At the same time, you know that these companies will provide the best packaging solutions, but you may have skipped out the problems associated with the contract packaging.
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This article will help you explore the top mistakes you can make when selecting a co-packer. Here, we help you avoid some potentially very costly blunders.
Table of Contents
Choosing a company that’s far away
This is one of the most consequential errors that you may commit. When choosing a contract packing company for your packaging solutions, the location related to the area of the manufacturing site and end-users is essential.
It is highly recommended to choose one close to the manufacturing site and end-users’ geographical location. The further you’re away from the company, the higher the shipping and logistics costs.
Choosing exclusively on price
One of the first proposals to ask is how much does it cost? While this sounds to be an excellent question, the company with the lowest cost may not be the best idea. When the decision is exclusively on price, you open yourself up to a set of potential problems.
You’ll definitely come across a co-packer with the lowest cost of doing business; meanwhile, they may not be specialized for your product or the type of delivery.
Choosing the one that lacks growth
Most of the packing companies meet the demands as allotted by packaging solutions initially; however, they may not keep up with the supply once the customer’s request rises. The mark of a professional service provider is the one that can expand their business in order to satisfy the client’s needs.
Now, this may be in the form of co-packer purchasing new warehouses, machinery, labor, or robotics. Unfortunately, not all companies may grow as per the need. When choosing a company, you will want to ensure to choose one who can expand their production as needed as your packaging requirements.
In-house vs. Contract packaging
If you have an in-house packaging line and are tired of managing all the elements, you may feel tempted to outsource the packaging line. However, you may want to crunch the numbers. If you have already paid off packaging machinery and other significant investment while running a smooth packaging line, in that case, the change may be costly.
Also, switching to a contract packaging plan may be detrimental to your finances and meet the customer’s demand during the changeover.
Final Wrap
Now that you know the major mistakes you need to avoid when shopping for a contract packaging company. It is highly recommended to think about all the areas of concern. While this can be pretty challenging, having professionals on your side is definitely the best option.