Retail Warehouse full of Shelves with Goods in Cardboard Boxes, Workers Scan and Sort Packages, Move Inventory with Pallet Trucks and Forklifts.

How Does Contract Packaging Work?

If you’re a business owner, you know that packaging can be a time-consuming and expensive process—this is where contract packaging comes in. Contract packaging is a service that allows you to outsource every aspect of your packaging process to another company.

The Contract Packaging Process

Contract packaging companies help you save time and money by handling the entire packaging process. This process includes:

  1. Packaging Design: Packaging companies will first design the packaging for your products. The design process involves material selection, determining the most efficient shape and size of the packaging, and creating any necessary labeling or branding. 
  1. Storing Products: Before the products are packaged, they must be stored in a safe and secure location to ensure they remain in good condition. Storage environments need to be clean, dry, and free of pests and contaminants that could damage the products. The products must also be organized and well-labeled to ensure they can be easily located when needed.
  1. Determining Which Products Can Be Kitted: Kitting is the process of grouping a collection of products into a single package. A contract packaging company can help you determine which products can (and can’t) be kitted together to save time and money.
  1. Assembly: Once the products have been designed, stored, and kitted (if necessary), they are assembled into their final packaging. The assembly process includes adding any necessary inserts or accessories, sealing the packaging, and labeling it appropriately.
  1. Storing the Products: Finally, the products need to be stored in a safe and secure location until they are ready to be transported to their final destination. Please note that most packaging companies will not handle transportation and logistics, but they can work with your chosen transportation and logistics company to ensure your products safely depart the warehouse.

The Benefits of Outsourcing Your Packaging

  • More Time: Outsourcing packaging frees up valuable time and resources that can be better used to focus on your core business activities, including product development and marketing.
  • Increased Efficiency: Contract packaging companies have specialized expertise in packaging design and assembly.
  • Fewer Space Restrictions: Packaging can take up a significant amount of room in a warehouse or production facility, which can be challenging if you have limited space. By outsourcing your packaging, you use the available space you have to run your production processes.
  • Less Risk: If you’re unfamiliar with your industry’s packaging and shipping requirements, you risk compliance issues, which can result in damaged products and hefty fines. Working with a packaging company reduces this risk because they have quality control processes to ensure the packaging is designed and labeled with safety and compliance requirements in mind. 
  • Reduced Waste & Costs: Packaging companies can also help businesses identify areas of improvement for packaging and shipping practices to reduce waste and costs and minimize their environmental impact. 

Where to Find Contract Packaging Services

You can find many contract packaging companies through online directories and listings. If you’re starting your search for the right company, start with Export Corporation. Founded over 70 years ago, we offer many packaging capabilities, including product design, assembly and kitting, and warehousing. We’re also ISO- and ISPM-15-certified and registered with ITAR and SAM. 
Contact us today if you have questions about contract packaging or want to learn more about our capabilities.