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, innovation and diversification add to the business case for using outsourced packaging services.
As your warehouse operations expand, the challenges also grow in scope. An innovative approach improves both inventory management and overall efficiency.
As supply chain complexity grows alongside labor and transportation costs, an experienced warehouse 3PL can help you realize significant efficiency gains.
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