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What is a Contract Packaging Company?

What is a Contract Packaging Company?
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If you own a company that is physical product-based, you may have heard the term “contract packaging” or “co-packing” in your travels. So what exactly is a contract packaging and why should you and your company care?

As it turns out, there are a number of reasons why your company may want to take a look at hiring a contract packaging company in order to get your product across the finish line.

Speed Up The Process

So let’s say that you have a product and your marketing strikes gold with your latest product rollout. You have the product to fill the orders, but you are packaging everything in house with your own employees and you are having trouble meeting delivery deadlines.

This is where a co-packing or co-packaging company can come in to save the day. The last thing that you want to happen is to lose that fire for your product after all the time you put into your marketing by having a ton of backorders.

Hiring a contract packaging company to take on the task of finishing your product and getting it ready for either the shelves or home delivery will make sure you don’t miss out on this golden opportunity. 

Licensing and Regulation

Depending on what your product is, packaging may come with strict guidelines and even require your company to get an expensive license that may take a long time to get. A good co-packing company will have all the licenses necessary as well as equipment that meets all of the regulatory requirements.

So you can save the time and expenses associated with these hurdles – in fact, you can save even more money by not having to purchase expensive equipment and then train your staff to use it. It’s a win/win for everyone.

Rapid Expansion of your Company

You and your company have been working hard to get your product to market and now you are quickly gaining popularity. Who knows why, maybe an influencer liked your product and shared it with their millions of viewers – but you need to expand your company.

Now you have the choice of how you are going to expand. Do you want to invest in the machinery and training for in-house packaging? Would you rather temper your focus on rolling out more products?

If your answer was the latter, then it’s probably time to lean on a contract packaging company so you can focus your efforts and budget there. It just makes sense to rely on a company that specialises specifically in the packaging and finishing of products while you and your company focus on the product itself.

Another positive to hiring a co-packing service is that if you are seeing a slow month, you don’t have employees and machinery laying around costing you unnecessary money. 

So, if any of these scenarios sound familiar to you, then you should certainly consider contracting a co-packaging company. There are just so many upsides to outsourcing the finalisation of your product that it’s hard to overlook this opportunity.

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