Co-packers are experts in packaging and provide companies with the ability to bring a new product to market quickly. They optimise machinery, materials and labour and may also provide design and research and development services and printing services to support the process. They also help with supply chain resiliency, as they can fill in for production issues or rush orders.
Managing a packaging line requires significant capital to purchase and implement machinery, labour and infrastructure. Companies that can manage their own packaging lines and supply chains well, but wish to outsource the packaging function, are a good fit for a co-packer. They can analyse their current supply chain infrastructure to see if they could make savings in cost and time through a co-packer relationship. Find out more about Contract Packing Services by visiting www.wyepak.co.uk/contract-packing
In the beverage industry, co-packers are seeing a trend toward hot- and cold-fill PET bottles, glass jars, and shrink sleeve labels that offer brands more customisation options. In addition, brands are demanding more environmentally sustainable solutions from their suppliers, and many are turning to co-packers that can deliver earth-friendly alternatives and eco-sensitive package designs.
Increasing sourcing risks and shortages of ingredients are challenging supply chain managers. Other concerns include the rising price of raw materials, such as aluminium cans and glass jars, which are causing manufacturers to rethink their packaging strategies. This includes going with contracts instead of spot purchasing and supporting forward buying to build inventory cushion. It could also mean changing from a build-to-order model to a more predictable volume approach.