No wonder you may have to consider whether you should choose a contract packaging company for your packaging operations. With the availability of so many options, it is easy to get caught in confusion.
You can utilize all or some services provided by a contract packaging firm. Moreover, you should know that not all contract packaging companies offer the same services.
Your best bet is to have a solid understanding of different contract packaging services. That will make it easy for you to choose a contract packaging company offering the services you need.
Every contract packaging company offers a host of services. While you may notice cross-over on many contract packaging companies’ services, each of those vendors will offer some services that others don’t.
Now, we will discuss some types of contract packaging companies.
Contract Packaging Services: Primary Packaging
Primary packaging is the first layer of packaging that comes in contact with the product. The purpose of this packaging is to contain, protect, and preserve the product. That way, the product remains protected against contamination.
A noticeable example of primary packaging is blister packaging that contains over-the-counter pharmaceutical products. Aside from protecting the product, these materials also inform consumers about any contamination.
Contract Packaging Services: Third-Party Logistics
Third-party logistics or 3PL refers to the outsourcing of logistics. It can be the outsourcing of several operations, including cold storage, inventory control, and fulfillment. This option is usually more viable for e-commerce businesses.
Hiring 3PL companies can help businesses simplify and streamline their businesses. Automation or outsourced labor is an essential aspect of this process. Companies can get a significant burden off their shoulders by letting 3PL companies manage warehousing, storage management, and transportation.
3PL companies help their clients by simplifying their supply chain management. That also improves speed to the market and reduces costs.
Contract Packaging Services: Cold-Storage
Cold storage refers to refrigerated storage and transportation to keep the products in a cool environment. Products that have to be kept cool include frozen pizzas, soft drinks, ice cream, and some pharmaceutical products.
Contract Packaging Services: Kitting
The process of unitizing several SKUs into a single package to form a new SKU is known as kitting. These contract packaging services are quite popular among e-commerce businesses and retail establishments. These businesses often need a collection of several products prepackaged to create one easy-to-manage SKU.
Contract Packaging Services: Point-Of-Purchase Display
Point-of-purchase displays refer to physical or digital branded displays at locations where consumers are likely to decide on buying or not buying products. These displays contribute to influencing the in-store shopping experience of consumers.
An essential factor playing a role in creating such an effect is eye-catching branded content. This content may appear on stacked products, cardboard shelving, banners, or other digital or physical elements that attract consumer’s attention.
Is contract packaging appropriate for you?
While contract packaging can benefit every type of business that has to package and ship products, it is still necessary to evaluate whether you need this service. You have to weigh a lot of factors to decide on this. Those may include costs, accessibility, and the size of your business.
