Today’s product manufacturing environment is extremely competitive. Consumer tastes change rapidly; competitors quickly encroach on your customer base; and manufacturing technologies are constantly changing. How does a manufacturing operation deal with all these challenges while still remaining productive and profitable?The answer: By using contract packagers and fulfillment service providers!
Like any critical contractual relationship however, taking advantage of such partnership requires certain building blocks to be in place – BEFORE you leverage the benefits:
The goal is to capture the benefits from a contract packager relationship by making it a collaborative initiative. To that objective, you must acknowledge that contract packagers can be strategic PARTNERS, and not just useful SUPPLIERS. By approaching the relationship as a partnership, you’ll ensure that your contractor also contributes to the profitability and longevity of the association.
So, how exactly can you capture the benefits from working with a contract packager, and what synergies would you expect to unlock from such a relationship? There are multiple benefits that contract packaging relationships offer to manufacturers and distributors alike, including:
These three benefits alone will make it worthwhile to explore using the services of a contract packager. However, other synergies like specialization, distribution networks, kitting and assembly, innovation and diversification add to the business case for using outsourced packaging services.
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