What Are the Benefits of Partnering With Third Party Packaging Companies?
The many challenges impacting a company’s ability to manage in-house packaging processes successfully range from the high cost of hiring and training skilled labor, ensuring compliance regulations are met, lack of warehouse space, and time constraints involved with designing custom packaging.
The best solution to these problems is to partner with a third-party packaging company.
What Do Third-Party Packaging Companies Handle?
Third-party packaging companies help manufacturers in all industries, from automotive and medical to military and aerospace. Most professional packaging companies handle the design and construction of custom packaging, including crates, pallets, and other tertiary options. Packaging companies can also identify potential kitting opportunities, aid in assembly tasks, and provide storage and inventory management solutions.
Removing these responsibilities from manufacturers allows them to put more focus on their production processes. In addition to giving manufacturers more time to focus on production, there are other benefits to outsourcing packaging tasks to a third-party company. These benefits include:
Benefit #1: Cost Savings
There are many overhead costs associated with packaging. Manufacturers who want to handle packaging in-house must invest in high-quality equipment, including weighing machines, strapping machines, wrapping machines, and more. They must also hire and train workers to handle the packaging tasks and potentially expand or redesign their warehouse to ensure they have room for packaging runs.
Working with a third-party packaging company means that you don’t have to invest in this equipment, employees, or training, which opens up your budget to other potential investment areas.
Benefit #2: Increased Proficiency & Productivity
Training employees takes time, especially if they don’t have any prior experience designing or constructing tertiary packaging. And even with training, inexperienced workers may still make mistakes that will cost you time and money.
Outsourcing packaging to a third-party company will give you peace of mind because these companies have experienced employees who are continually trained and updated on best packaging practices per industry. And when your customers start receiving their packaged items quickly and correctly, they won’t hesitate to do business with you again. As your reputation grows, so will your customer retention rates.
Benefit #3: Access to Expertise & Industry-Specific Knowledge
Packaging products safely, attractively, and according to special compliance regulations is critical. And it takes time and experiential learning to qualify as a packaging expert for various industries. For example, if you rely on recently hired employees to package food items are at risk of being penalized for noncompliant packaging practices. The ramifications of violating strict rules regarding how food, military equipment, or certain chemicals are packaged (materials, box size, unique environmental needs, kitting protocols) could range from high fines to an extended disruption of your manufacturing facility.
Having access to this level of expertise and knowledge will help you avoid production and shipping delays.
Benefit #4: Improved Quality Control & Regulation Compliance
As previously mentioned, you must adhere to the many compliance regulations set by the federal government. Examples of these regulations include the ISPM-15 label that is required for most wooden crates. Failure to comply with federal regulations can result in shipping delays, fines, and in some cases, product damage. A third-party packaging company will have a deep understanding of the regulations for your specific industry and the products you’re shipping.
Furthermore, a packaging company that regularly maintains an ISO 9001 certification will also have a quality management system that ensures your custom packaging is compliant and well-designed to protect the items you’re shipping.
Benefit #5: Stabilizes Seasonal Sales Patterns
Revenue increases when your sales pattern remains stable but increases gradually over time. However, the sales of many products experience seasonal ups and downs, which means businesses must hire additional employees, deal with warehouse issues, and keep up with ever-increasing packaging requests. Businesses that work with a third-party packaging company will avoid some of these seasonal issues.
Get Help From an Industry-Leading Contract Packaging Company
Export Corporation is a full-service, ISO-certified contract packaging company that helps businesses in the commercial, military, aerospace, and automotive sectors. We offer a wide range of services, including custom packaging design and construction, warehousing, inventory management, repackaging, assembly and kitting, preservation, and more. In addition to our ISO 9001 certification, we maintain an ISPM-15 HT certification and are ITAR and SAM registered. Please contact us today to learn more about our capabilities or to request a project quote.