Should You Outsource Your Primary Packaging?
With the whirlwind of events going on in the world today, there are many reasons to consider outsourcing your primary packaging.
Whether it's the ongoing disruption within the global supply chain or costs associated with upgrading or buying new packaging machinery and the required related items, there are various reasons why outsourcing may be the right choice for you.
However, not all companies are suitable for outsourcing their primary packaging and entering into a relationship with a co-packer.
So how do you know if taking primary packaging off your plate is suitable for your business or not? What items of consideration do you need to think about when making this decision? Is there anyone that can help you to make the proper choice?
These are but a small collection of the types of questions you should be asking yourself.
With the information in this article, you will be able to make the best choice possible regarding primary packaging as it relates to the success of your business.
Is Outsourcing Primary Packaging Right For You?
Contract packaging is all the rage these days. Co-packers may be able to save your business a lot of money. But, that is not all they can do for your company.
Outsourcing your primary packaging to a contract packaging company allows you to focus on other elements of your business that you do best. This not only simplifies various aspects of your packaging line, but it saves you time as well.
However, not all companies are a good fit for outsourcing their primary packaging and jumping into a relationship with a co-packer.
But, what questions do you need to answer to figure out if your primary packaging should be outsourced or done in-house?
Questions To Answer When Deciding How To Do Contract Packaging
Doing primary packaging in-house is something that many companies have decided to do. For these companies, it just makes sense to take care of these responsibilities themselves.
But, what exactly is the ideal situation in which keeping primary packaging in-house is, in fact, the best way for that company to succeed in their primary packaging endeavors?
And, how do you know if outsourcing would or would not be the superior choice to doing your primary packaging in your own warehouse?
Here, we will take a closer look at the top questions you need to answer before you decide how you should proceed in regards to your primary packaging needs.
1. Are you ready to give control of your primary packaging to another company?
We always ask a business when they ask about outsourcing their primary packaging with us if they are comfortable relinquishing control of their primary packaging and the related dynamics that come with that decision.
And, for some companies, this is not something that they are willing to do. This may be because the management wants to keep a close eye on the day-to-day elements of the primary packaging process to make changes to their KPIs in the ways that they feel would be most beneficial to the company.
Or, perhaps a business has recently purchased or upgraded to brand new packaging equipment. In this case, outsourcing your primary packaging to a contract packaging company may not make sense financially, even if it's a good fit for other reasons.
Regardless of why a company is not comfortable giving up control of their primary packaging applications to a third party, outsourcing is not a good idea if that is how they feel.
So, when beginning the process of deciding if you should outsource your primary packaging to a contract packaging company, first ask yourself a question.
That question is, am I comfortable handing control of this part of my business to another company? If the answer is no, outsourcing your primary packaging is not a good idea.
Wondering how much outsourcing your primary packaging will cost?
2. Can you afford to outsource your primary packaging?
You may be ready to relinquish your primary packaging to a contract packaging company. You may really want to get the responsibilities associated with primary packaging off your to-do list so that you can focus your energy on more critical elements of your business.
But, neither of these considerations will really matter if you cannot afford to outsource your primary packaging to a co-packer.
When figuring out if you have the required funds to justify entering into a contract packaging agreement with a third-party packaging partner, you need to do a few things.
Those things include looking at your current packaging line and the primary packaging projects you want to complete.
For example, suppose you have just invested in upgrading or purchasing new primary packaging equipment and all of the related items. In that case, it is probably not the right time for you to outsource as the cost would likely not be justified in this scenario.
Another reason that outsourcing may not be the appropriate choice for your company at this time is if you cannot afford a contract packaging plan based on your case-sensitive packaging project.
But, how do you know for sure if your business can financially justify partnering with a contract packaging company for your primary packaging requirements?
One way to do this is to further study the cost of contract packaging to decide for yourself if it is a wise decision to outsource at this time.
However, the best and perhaps most effortless way to figure this out is to speak one-on-one with a contract packaging expert.
They will be able to help you find out if doing your primary packaging in-house or outsourcing with a co-packer is the right decision.
3. Are you looking to free up time and resources to focus on the core elements of your business?
If you answered yes to this question, outsourcing your primary packaging to a contract packaging vendor may very well be a good idea for your business.
When you hand your primary packaging off to a co-packer, they take all the responsibilities associated with that part of your business off your plate.
Machinery, materials, labor, utilities, logistics. All of those items associated with your primary packaging will no longer be your responsibility.
When outsourcing your primary packaging, you will have one less thing to think about, more time to focus on more critical aspects of your business, and peace of mind knowing that a specialized vendor is doing your primary packaging.
So, if you want to take primary packaging off your plate, you can afford it, and you are ready to relinquish control of this aspect of your packaging line, there is a good chance that it is time to outsource this part of your business.
4. Are you close enough to a company that can outsource your primary packaging?
While you may not think of it right off the bat, your physical location may very well be the deciding factor on whether or not outsourcing your primary packaging is the correct choice for the success of your business.
As a general rule, you will not want to outsource your primary packaging to a contract packaging company that is more than a 6-hour drive from your company's physical location.
This is due to the cost of logistics, shipping, and the related expenses involved in the outsourcing of your primary packaging.
Working with a contract packaging company that is further away than a 6-hour drive will not make sense financially or logistically in most cases.
5. Are you producing a high enough volume of packages to justify outsourcing your primary packaging?
Finally, you will need to figure out if the volume of products you would like primary packaged meets the minimum order requirements of your chosen co-packer.
Most of the time, if you do not have enough products being packaged for your primary packaging partner to fill at least four shifts of labor, chances are, the co-packer will not take on your primary packaging project.
Be sure to speak with a contract packaging professional about the volume of products you will be packaging so that they can advise you on whether or not you qualify for their primary packaging services.
How To Choose The Proper Primary Packaging Solution
By answering the questions above, you should be able to decide if outsourcing your primary packaging with a co-packer is the right choice for your business or if keeping it in-house is the better decision.
If you would like some help in this process, click the link below to calculate the cost of outsourcing your primary packaging with a co-packer.
With this handy free tool, you will be able to decide if outsourcing your primary packaging is the proper solution for your business or not.
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.