Spending too much on in-house packaging costs can prevent you from investing more into areas like product design or R&D. By outsourcing to a contract packaging company, these operational expenses are reduced significantly so that your budget is used more wisely.

Contract packaging companies specialize in their field, making the entire packaging process seamless for their clients. Furthermore, these providers will take care of staffing requirements, production facilities and equipment at no extra charge to you.

Increased Product Visibility

Retailers face stiff competition from online shopping platforms that provide access to an abundance of product details and constant smartphones usage, so product visibility has become an increasing focus for them. Strategies used to boost product exposure include shelf positioning and appearance changes as well as smart packaging technologies such as QR codes or NFC that provide consumers with additional product details via QR codes or NFC tags.

Professional companies specialize in everything from initial design sketches to shipping finished products, and possess expert knowledge of local laws pertaining to consumer safety and environmental protection – so you can rest easy knowing your packaging complies. This frees you up to focus on core business activities while offering more variety to customers, which in turn boosts revenue streams and customer satisfaction.

Faster Production Time

Companies handling packaging in-house require substantial investments in manpower, floorspace and warehousing space; contract packaging services specialize in this one task which can drastically lower operational costs while freeing up resources to be invested elsewhere in their business.

Manufacturers typically set minimum order quantities (MOQ), making it challenging for small and midsized businesses to comply. Stocking distributors often buy directly from manufacturers to meet this MOQ and resell it on to customers as packaging. This allows smaller purchases without shopping multiple quotes or overbuying product.

As part of a consolidation buying strategy, vendors ship more product from fewer vendors with reduced freight costs, leading to significant cost-of-goods-sold (COGS) savings and enhanced cash flow and financial flexibility.

Increased Flexibility

Keep up with packaging trends requires manpower, floor space and warehousing capacity – costs which businesses could instead invest in product design or R&D rather than bear themselves. By outsourcing to a contract packaging company instead of bearing these costs themselves, they can focus on product innovation more.

Packaging distributors can offer an expansive selection of both off-the-shelf and custom packaging options than OEMs or other suppliers, providing one stop shopping that reduces time spent shopping around and comparing quotes from multiple vendors.

Manufacturers can benefit from lower freight costs per unit by buying in larger quantities or purchasing less packaging items – both options will help save on shipping and storage expenses while eliminating dead inventory in their warehouses, thus decreasing cost-of-goods-sold and increasing margin.

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Less Operational Costs

Top packaging companies understand local laws regarding consumer safety and environmental protection. This saves you the trouble of conducting your own research – which could result in noncompliance with any applicable government regulations.

Product packaging companies specialize in tailoring designs to your exact specifications, and have the capacity to produce larger volumes in shorter time-frames, thus lowering unit costs.

Co packers provide staff, facilities, production equipment, and materials – eliminating your need to invest in them yourself while cutting operational and maintenance costs – freeing up money that can go toward growing your business instead. Optimizing processes and products alone won’t get you very far; what matters ultimately is expanding it further.

Increased Product Variety

Product variety allows businesses to appeal to a wider array of customers and tap into new market segments, but businesses must carefully determine the ideal balance of variety according to customer needs and preferences; too little variety limits consumer options leading to missed sales opportunities while too much diversity leads to greater inventory costs that threaten profit margins.

Businesses can save money by partnering with leading packaging companies to streamline their procurement processes and reduce per-unit freight costs – helping reduce COGS and improve cash flow.

Employing the appropriate packaging partners can bring many advantages, from quicker production times and cost savings, to improved operational efficiencies and cost reduction.