How To Choose A Contract Food Packaging Company: 5 Key Considerations
You have decided that contract food packaging is right for you. You are trying to figure out how to choose the right contract food packaging company. But, you are not sure which considerations are key when choosing a vendor.
Industrial Packaging has been offering contract food packaging services for many years. We offer these services to everyone from small businesses up to Fortune 500 clients. While we may or may not be the right contract food packaging company for you, we can help guide you to choosing the right one.
This article will take a look at the key considerations you must think about when choosing a contract food packaging vendor. With this information, you will be able to choose the right contract food packaging company for your business.
1. Safety Certifications For Contract Food Packaging Companies
When it comes to contract food packaging, the number one consideration when choosing a vendor is safety. You will want to make sure that your contract food packaging partner is FDA approved. This will ensure that their food safety protocols are up to the FDA's standard. And, you will want to find out what other food safety certifications they have.
For example, you will want to ask the rep from your chosen vendor questions like, is your company SQF certified? Make sure you ask, what, if any, additional food safety certifications does your company have?
Compare the answers to these questions from several local contract food packaging companies. Then, you will be able to identify the company that is best suited to meet your food packaging needs.
2. Core Capabilities Of Your Contract Food Packaging Company
Not all contract packaging companies are created equally. Each company may exceed expectations in one type of packaging application. But, they may not have the same strengths in other areas.
You will want to choose a contract packaging company that can meet your market and product's specialized dynamics.
Some contract packaging companies offer food manufacturing. Some offer cold storage capabilities, while others do not. Some contract packaging companies may offer both flexible and rigid packaging materials. Still, some contract packaging vendors may only offer one or the other.
You will need to identify any specialized requirements of your food packaging needs. Then, you must work to find a contract food packaging company that is best suited to meet those requirements.
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3. The Location Of Your Contract Food Packaging Company
At first, it may seem like an afterthought. But, the location of your contract packaging partner is an essential item of consideration.
You will generally want to choose a contract packaging company that is as close to your business as possible. The further away you are from your contract packaging vendor, the more expensive your shipping and related logistics will be.
By analyzing the geographical location of multiple vendors within your region, you will identify the companies that are closest to your business. You will want to choose a company close to your physical location.
4. The Cost Of Contract Food Packaging Services
You will have to figure out your available budget before you begin the journey of choosing a contract food packaging partner.
While various things can impact the cost of contract packaging services, there is one item in particular that you will want to consider. That item is your cost per unit (also known as cost per package).
Understanding your cost per package will give you a ballpark figure for the total cost of outsourcing your supply chain.
To calculate your cost per unit, you will need to do some math.
Generally speaking, if you can leverage a high-speed filling line that requires only a few touch-points, you are in the $.05-$.15 per unit mark.
If you have a very manual, bulky, complex point of purchase display, your cost could be over $100 per unit. If you are somewhere in the middle, the good news here is you will be closer to the lower end than the higher.
Once you figure out your cost per unit, you can multiply that number by the number of packages you are packaging monthly. This will allow you to get the ballpark figure mentioned above.
5. Branding And Design Capabilities Of Your Contract Food Packaging Company
You will want to find out what branding, design, and graphics capabilities your contract packaging vendor offers.
What material options do they offer? What type of flexible packaging printing capabilities do they have? What kind of packaging machinery do they have at their disposal? Do they offer design assistance for your packaging?
Asking these questions will help you determine if the contract packaging companies you are considering have the required branding and design capabilities necessary for your products.
How To Choose A Contract Food Packaging Company
With the information above, you should have everything you need to choose a contract food packaging company. To summarize the key considerations that will allow you to make a final decision:
- Choose a contract food packaging vendor that is close to your business and your customers.
- Select a contract food packaging company that is specialized to meet your niche market requirements.
- Confirm FDA-approved status and identify the other certifications that you might require.
- Choose a contract food packaging company that can help you as much as you need with branding and design.
- Choose a contract food packaging company that fits your budget.
As you progress through the process of choosing a contract food packaging company, you will want to choose a vendor who meets all the criteria above. This will ensure that you have chosen a vendor who can meet your requirements and budget.
At this point, you should have everything you need to choose a contract food packaging partner. If Industrial Packaging meets all of your criteria for a potential contract packaging company, then we might be the right contract packaging partner for you.
Please feel free to speak with one of our packaging experts. They will be able to consult with you in a one-on-one meeting. With this consultation, we will be able to figure out if we are a good fit for doing business together or not.
If we do not meet your criteria for a contract packaging partner, we are likely not the right company for you. In this case, we would recommend that you continue your search for a contract packaging partner elsewhere.
About Nathan Dube
As the Digital Marketing Specialist at Industrial Packaging, I am honored to create content for such a phenomenal company and work with one of the greatest teams in the Packaging Industry. Whether creating a video, writing blog posts or generating other pieces of content and multimedia, I am always excited to help educate and inspire our prospects and clients to reach their highest potential in regards to their packaging processes and needs.