Until it is needed, the idea of co-packing, also known as contract packaging, is often irrelevant. It’s a far-off term that seems hard to understand, let alone implement. However, as your business takes off and you need to meet the demand of your customers, understanding what co-packing is can save you both time and money. If you are still on the fence about whether a co-packer can help you with your business needs, read on to find a list of the top advantages of working with a small batch co-packer in Ontario:
#1: Saving on costs
While there are many advantages to working with a co-packer, above all else is the ability to save money. A cost advantage is that a contract manufacturer already has working systems in place. They have skilled employees who have already gone through training, saving you labour costs. Furthermore, they have the best practices in the industry and don’t need to try out new systems.
Costs associated with hiring staff, training staff, and implementing systems are incredibly intensive. This is especially true if you don’t have the knowledge of a specific industry ahead of time. Small batch co-packers have already spent the money on these elements, and when you hire them to perform their duties, you don’t have to worry about this overhead.
#2: Access to more advanced technology
There is a lot that goes into the elements of product packaging. We judge objects by their appearance, and if a product isn’t packaged properly, it won’t sell. To combat this, contract manufacturing uses the latest technology to streamline their packaging services- and technology is not cheap!
Since co-packers already have the necessary technology and integral systems, it means you have access to all the required technological innovations without actually having to pay for them. Their production runs save your small business the hassle and hidden costs of acquiring the technology to manufacture and package your product lines and offers you the option of custom packaging. The right technology can also lower the cost per unit of your product and increase your profit margins.
#3: Small batch co-packers help you meet customer demands
Needing the services of a co-packer usually comes about when demand in your business spikes and your production needs can’t keep up. As a result, you can have a backlog of orders and, unfortunately, dissatisfied customers. Long wait times can quickly diminish all that hard work, time, and money spent attracting customers in the first place.
Co-packers with private label offerings can get a higher quantity of your product to market much faster than you can. Because their systems are already in place and their staff already trained, it is easier for them to take your product and package it than it would be for you to scale up your systems and hire and train extra staff.
Therefore, not only do you get the expertise from co-packers, but you also get happier customers that are then more likely to become repeat customers.
#4: Knowledge of a specialized industry
The key to a successful business is finding one thing you are good at and repeating it over and over again- this is the epitome of small batch co-packers. They know how to package products and complete their tasks well and in a timely fashion. Depending on the product and the co-packing services, the final packaging may come in a variety of forms, including clamshells, shrink wrapping, or blister packaging.
As a business owner, do you really want to spend your time basically learning a new business instead of focusing on what you’re actually good at? The answer is usually ‘no.’ Instead, allow co-packers to use their expertise in their niche industry to manufacture and package your finished product.
While you may be protective of your business and want to be as hands-on as possible, there will come a time when you realize you need more support. You certainly don’t want to outsource creative tasks and prevent innovation, but using a co-packer is undoubtedly a proven way to allow you more time to concentrate on what you enjoy.
#5: Access to certifications
When you distribute a product, especially in the food and beverage industry, you need to go through the proper channels and earn the right certifications, which can take a lot of time and a fair amount of money. Paperwork and inspections need to constantly be completed, and when you’re a small business, time and resources are much better spent on other tasks.
Often, food and beverage products, such as hot sauce, baked goods, or salad dressings, need extra quality control and more frequent inspections. When you co-pack your food product, you are guaranteed that your finished product is up to code in every regard.
A contract packager has the necessary certifications on their end. In order for small batch co-packers to comply with the law, they need to undergo quality control inspections and stay up to date on their certifications and credentials. They will routinely be engaged in these processes, which means you don’t have to worry about it as a small business owner.
Instead, you can focus your time and energy on the success of your label.
#6: Warehouse support
Your company has just enough square space to house you and a few employees, and some of them may even work from home. However, that leaves you no room for your product. Instead of spending money on storage fees, the use of a co-packer can solve this dilemma for you.
Small batch co-packers in Ontario offer different elements, and one of them is a variety warehousing solutions. After production, you can store your products on-site until they are ready to be shipped.
There are certain co-packers that specialize in food and beverage that have refrigerated storage onsite for your ingredients and finished food products. Not only does this save you money on renting your own warehouse, but it also saves costs on shipping the products back and forth from a co-packer.
Not all co-packers offer this service. However, many do, even they do not advertise it. When choosing a co-packer, be sure to ask about extra services, including warehouse support, so that you can have a broader scope of the advantages of cost benefits.
The more streamlined an operation is, the smoother it will run. If you are already producing your products off-site, it stands to reason that you should store them and then also have that outside party help with shipping and receiving.