A Guide to Contract Packing

Contract packing is an effective solution for businesses looking to outsource their packing needs due to limited equipment, space, or the need to test a product launch.

This guide explores what contract packing entails, the benefits it offers, and how to select the right contract packer for your business.

For a more detailed contract packing guide, visit https://www.reagent.co.uk/blog/guide-to-contract-packing/.

But first...

What is Contract Packing?

Contract packing, or co-packing, involves outsourcing packaging requirements to a third-party company. This service enables businesses to focus on core operations such as R&D, manufacturing, or marketing, while the contract packer manages the packing and distribution.

Contract packing is beneficial for companies that need specialised packaging, like vacuum sealing or sterilised packing, as well as standard packaging solutions.

Types of Contract Packing

1. Bottle Filling: Common in food, beverage, pharmaceutical, and chemical industries, bottle filling requires sterile conditions to prevent contamination.
2. Shrink Wrapping: Involves wrapping a film around products and using heat to shrink it, suitable for items like books and food products.
3. Vacuum Packing: Removes air to create an airtight seal, extending the shelf life of food products.
4. Bottle Labelling: Involves correctly labeling various types of bottles, crucial for providing necessary product information.
5. Hand Packing: Ideal for delicate or irregularly shaped items that require careful handling, such as gift sets.

The Process of a Product Packing Service

The product packing process typically involves several key steps:

1. Designing packs or containers: Creating packaging prototypes based on customer specifications.
2. Managing inventory: Receiving and auditing products and components.
3. Printing and producing components: Creating packaging materials and printing labels.
4. Packaging on assembly lines: Assembling and packing products with various parts.
5. Warehousing and distribution: Storing and distributing packed products, especially beneficial for businesses that lack space.

Why Outsource Contract Packing?

Outsourcing contract packing offers numerous advantages, including access to specialised equipment, economies of scale, reduced operational costs, and a stable labour force.

It is particularly useful for businesses scaling up production, lacking in-house resources, or requiring specialised packing techniques.

Custom Labelling and Design

Contract packing services often include custom labelling and design, allowing customers to control their product's appearance and branding.

Customers can provide design specifications or use the in-house design services offered by some contract packers (like ReAgent!).

Choosing the Right Contract Packer

Selecting a suitable contract packer involves careful consideration and comparison of potential companies.

Key factors to evaluate include experience with similar products, pricing, and quality assurance.

It's crucial to ask potential packers about their experience, past clients, and how they handle challenges.

Costs of Contract Packing

Contract packing costs vary based on factors such as material cost, order volume, competition, and package design complexity.

High demand and specialised techniques can drive up prices, so it’s essential to discuss pricing with the contractor.

Risks of Outsourcing Contract Packing

While outsourcing offers benefits, there are potential risks, such as incorrect labels, product recalls, or low-quality packing.

Thorough research and clear communication with the contract packer can help mitigate these risks. Including indemnity clauses in contracts can also provide additional protection.

Getting Started with Outsourcing Contract Packing

To begin outsourcing, businesses should:

1. Identify specific needs.
2. Research and contact potential contract packers.
3. Request project proposals.
4. Finalise the contract.
5. Start production.

Does your business need a chemical contract packer? For more information or to discuss your specific needs, contact the ReAgent team on 0800 9555 798.