“Co- Packer provides assurance to the quality standards for the products.”
The Type of Co packing industry is needed to be decided on the facilitation’s and understanding to go through at long term basis. Basically what we understand the possibility of outgoingness through which the factory need to be framed, but in a sense to put value –added products the initiator needs to know the details.
A contract packer, contract packaging, co-packer, co-man, and contract -manufacturer is a company that manufactures and packages foods or similar products for their clients. Secondary packaging refers to the next layer of packaging or the packaging used to group various pre-packaged products together. A contract manufacturer (“Co-Man”) is a manufacturer that is contracted to produce your company’s product line..
1. Capacity underutilized
- Process need to be understood properly ,as underutilized areas need to be mapped out and capacity of area need to be utilized properly.
- The capacity area needs to be used properly and wisely and as such with the requirements of standards.
2. Production team culture
- Production team culture need to be on continuous training process
- If you are not satisfied with the culture built within production team then you can’t expect proper outcome from them.
- Production team needs to be motivated with all possible ways.
Companies are finding many reasons why they should outsource their production to other companies. Cost savings being priority. Companies save on their cost of capital because they do not have to pay for a facility and the equipment needed for production. They can also save on labor costs such as wages, training and benefits. Some companies look to contract manufacture so they can cut out there over head expense and bring up their profit margins so they can focus more on marketing.
“Manufacturing Food & Bakery Products Is Very Expensive & Co – manufacturers know that many start up companies & food entrepreneurs don’t have the funds for all the test – runs and experimentation needed to validate the manufacturing product. Experimental test – runs & line time can cost thousands of dollars and manufacturers would prefer to work with established food companies.”
A Co-packer or contract manufacturer is your manufacturing business partner. Although the idea appears to be straightforward, you need to understand the relationship your business will have with the co-pack provider to ensure that the experience will be a positive one for you and for the co-packer. A good experience requires you to be very well prepared before you open negotiations. You will need a very detailed understanding of your own product and a detailed understanding of the service that the co-packer can provide.
3. Terms clarity
- There are legal implications involved. It is important to ensure that legalities are dealt with. It is wise to have your lawyer look over all documents covering your business relationship with the Co-packer. There will be a division of activities so this needs to be spelled out and documented. This essentially means the use of ‘specifications’ or targets to meet. This can apply to everything from cost and delivery to food safety and quality. So how much food safety is needed?
- What is it?
- Where is it being sold?
- Is it provincial, Canadian, into the India or sold internationally?
- Provincial EHO Approval?
- Federal CFIA Registration?
- HACCP Certification?
- GFSI Certification?
- What do the customers want? (And when?)
- Food safety qualifications needed: Gluten Free? Peanut free?
- Other quality certifications: Organic, Halal, Kosher, non-GMO 6
- There is the possibility of serious illness, death and recall as a result of this partnership. This must be included in the contracts.
- There should be a mechanism to ensure notification of either party in the event of changes. This is a requirement in GFSI standards.
4. Bandwidth(RM to FG)
- The conclusion on part needs to on part of raw material receiving to finished goods dispatch.
- The proper knowledge on the process and its control is very important for starting co packing industries.