““Co- Packer provides assurance to the quality standards for the products.”.”
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. Co –packing has become an important competitive advantage for manufacturers, particularly in the bakery, food and beverage markets, as it is a rich area for operational efficiencies. In the current economic climate, co-packing has become increasingly popular as a means of fulfilling large projects without taking on extra stuff and equipment. In short, co-packer is an established food company that produces your existing company’s product lines to your specifications for a fee.
Is Food Co packer right choice?
- SIGNIFICANT NEEDS
- FRAME OF TRUSTWORTHINESS
- The major perks and benefits of Co- packing for Food manufacturers are: Greater product visibility, management of costs, flexibility and environmental benefits are some major benefits food manufacturers can derive from the process.
- The primary driver is managing costs, because third party operators already have the expertise, resource and staff in place.
- In a recent Contract packaging survey, highlighted in Supply chain matters, 68 % of respondents who had invested in co-packing said it had increased their business flexibility, while 85% felt it helped cut costs and bring their margins way up.
- With co-packing, companies can take advantage of skills that they not possess, but the contract manufacturer is likely to have relationships formed with raw material suppliers or methods of efficiency within their production.
- Contract manufacturers are likely to have their own methods of quality control in place that helps them to detect counterfeit or damaged materials easily.
- With co-packing companies, organizations can focus on their core competencies better if they can hand off base production to an outside company, leading to time efficiency and cost efficiency.
- Co –packers persist of market research and have unique model ideas for packaging and process framework, which may seem to be beneficial for the organization to work with.
“ Proper communication with the Co- packer or Co- Manufacturer is the wise way to get maximum outcome ”
Frames of Trustworthiness
- The organisation should have the basic way to deal the co-packer companies on the basis of trustworthiness. Its the concept to understand and work with proper standardization certified organization along with regular audits to be carried on to rely on the process. Some of the certification bodies who assure the standards are ISO,AGMARK,HALAL,OHSAS etc. Moreover supplier and organisational standards are also put on priority to meet up the agenda.
- Contract manufacturers have multiple customers that they produce for. Because they are servicing multiple customers, they can offer reduced costs in acquiring raw by benefiting from economies of scale.Hence the efficiency of choosing co-packers also lies in the more units, the less expensive the price per unit with trustworthiness.
Need for Co packers
- Co- packers increase the efficiency rate for an organisation, by reducing costs and providing the support.
- It enacts to work on win –win situation for both the frames.
- Focus on necessary needs to grow can be placed on account as less attention to be given on basics as the process is system driven
Adequate machineries and proper set up is the main concern of costing which can be saved if we opt for a good co-packer. Additional benefits of positioning ,packaging versatility according to market needs is added benefits.
Minutes to be taken care while choosing co-packers
- Choosing the right co –packer is important. It can be done on part of reputation in the industry and understanding the frame of work on personal meets.
- Certification of standards is the important aspect to look into for the co-packer to work with.
- Contract negotiation is a vital part in which the organisation understands the soft and hard zone and put the sort through under compatibility match between co-packers and organisation itself.