David Roberge

By: David Roberge on March 18th, 2015

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I Want To Outsource My Packaging, But..

Supply Chain Services/ Contract Packaging

It's More Expensive Than I Can Do It For In-House

Contract Packaging Costs

Every once in a while we hear this. The question is, is it really? 

How did you arrive at your internal cost? 

Did you include:

  • Supervision
  • Heat, Light, & Power
  • Real Estate Taxes
  • Insurance
  • Depreciation
  • Support Personnel
  • Fork Lift Drivers
  • Did you require this department to make a profit (Your contract packager will need to)?
  • An allocated cost for the space used to do it internally

Here are the two critical questions that often aren't asked

Most of our customers tell us that what we do for them is far removed from their core competencies, and that the opportunity cost associated with engaging in a non-core-competency project far outweighs the cost of having us do the project. They choose to allocate their space, people, and capital to higher payoff activities... which are their core competencies. 

 OUTSOURCE YOUR PACKAGING

Photo credit: MorboKat / Foter /

About David Roberge

Part of the outstanding Industrial Packaging team. I'm lucky to hang out with some of the most knowledgeable folks in the packaging industry. I feel even luckier to be able to share our knowledge with you. I love learning about our readers and helping them grow their brand through unique, flexible package design from the birth of the product idea, through the supply chain, and to the launch and placement on the shelf or at the consumer's door.