Production teams are continuously focused on increasing the throughput of their manufacturing and converting equipment. The ROI on capital investments in new equipment is driven by increases in throughput while decreasing make-ready and change over time. Run speeds on new equipment continue to increase; however, the constraint on operations once new equipment is installed is likely finishing and packaging. By outsourcing portions or all of an operations packaging department to a contract packager, capacity is created to ‘pull’ additional throughput.Contract Packaging companies can work both ‘on-site’ and ‘off-site’. A full service firm such as Productiv will be able to either (1) take in products to their own fulfillment centers to do final assembly and packaging or (2) work on-site by bringing in their own teams but using the client’s floorspace.Whether you are considering an off or on-site model, their are competitive advantages when partnering with a contract packaging company.5 Competitive Advantages of Partnering with a Contract Packager
So how do you get started? The first decision to make is (1) would you like to reduce the cost and burden of temporary labor. If the answer is yes - then the second big decision is (2)whether you are comfortable with sending product offsite to be packaged. If that answer is yes, then consider reaching out to a few contract packaging companies for quotes and send a small project to test their capabilities - (1) quote turnaround time, (2) project onboarding ease, (3) cost, (4) lead time and (5) quality. At Productiv, we typically are able to turn quotes around in 24 hours, we dedicate a project manager for each program or project to onboard, our cost is typically 15 - 20% lower than using temp labor, our lead times are as short as 24 hours and we warrant our quality. A good contract packager will excel in all five areas and through a solid partnership, will increase your production revenue, reduce your labor expense and offer a competitive advantage through ultra short lead times when your clients need you to jump through hoops.
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