Co-Packing
If you are looking to scale your business, co-packing may be a beneficial option for you. Also known as contract packing, co-packing is when you outsource a company to manufacture, package, and label your products for you.
What Do Co-Packers Do?
Imagine having a growing salad dressing business and paying a team hundreds of labor hours to prep ingredients, measure amounts, bottle it up and label it correctly. Because people are doing this by hand, there is bound to be some human error; mismeasuring, or mislabeling. The cost per unit will likely be high and people can only work so quickly.
By working with a contract manufacturer, businesses can utilize the efficiency of their machines and team of specialized workers to get large contracts completed with high-quality standards. For business owners, a co-packer can lower costs, reduce errors, and free up more time for focusing on growing the business.
When working with a co-packer, scaling a business can be achieved much faster, without having to invest in the proper equipment, space, workforce, and certifications needed to manufacture and package on a large scale.
Top Industries for Co-Packing
There are common industries where you see contract manufacturing more often than others. For example, in the food and beverage industry, it is common to work with a co-packer. It is unlikely that many brands will have all the means necessary to produce thousands of products at a time for sale across the country or world. Instead, these brands will seek out contract manufacturers in specific areas of interest to produce their products so that products can be closer to their end retail spot and overall costs can be lowered. Other top industries for co-packing include:
- Beauty and Cosmetics
- Medical
- Nutrition
- Pharmaceutical
- Dental
How Co-Packing Can Help Your Business
Lower Costs-When producing in massive quantities, overall costs can be lowered due to efficient processes in place by co-packers. Businesses are also saving by not having to purchase property, machinery, and materials. As well as find, manage, and support a full staff.
Specialized Team-An expert team can help with every step of the way, from design, formulation, packaging, labeling, and shipping, the co-packer will be able to guide the process.
Supplier Relations-An experienced co-packer is likely to have long-term connections with suppliers and be able to negotiate lower rates on materials needed.
Diversified Supply Chain-Contract manufacturers have multiple suppliers to source ingredients and packaging from to ensure they are always able to have the necessary materials to complete a contract. Sometimes certain products can be hard to source, especially since covid disrupted supply chains. Having multiple suppliers in various parts of the world will allow co-packers to have the security to perform large contracts.
Maintain Quality-Co-Packers must follow regulatory processes and maintain proper certifications and quality standards to maintain operations. Most co-packers require stricter measures than legally required out of an abundance of caution and level of safety. Trusting the quality of your product to a co-packer can be the main concern but co-packers are experienced and certified.
Work with Beneficial Blends
We are experts in the industry with 15 years of experience. Our team of experts is there to help with every step of the process. We specialize in private labeling, co-packing, bulk/wholesale, and re-packing to help bring your product to life. If interested in working with us, please contact info@beneficialblends.com.