If you're launching a new brand, switching to a new packaging format or experiencing significant expansion in Australia, outsourcing some or all of your manufacturing or packaging activities is probably on your mind. The manufacturing process is something that many entrepreneurs and business owners fear. Partnering with contract packing services and manufacturers may save you time, money and resources while providing you with the expertise and services you need to grow your company.
What are contract manufacturing and contract packaging?
Contract manufacturers are third parties that convert ingredients and/or raw materials into finished, consumer-ready products, whereas contract packagers apply primary packaging to finished, consumer-ready items. Simply put, contract manufacturers create the goods and contract packagers package them.
Read on the following six benefits of hiring contract manufacturing and packaging experts.
- Less upfront investment
You don't have to invest in the machinery and resources needed to fill, package or make your finished product if you use a co-packer or co-manufacturer who has already done so. For many brands, this is a no-brainer, as the initial equipment and space investment is enormous. If you are unable to make this investment, it may be more cost-effective to hire a contract manufacturer and packager who has the necessary machinery, supplies, and staff on hand. As a result, overhead costs are kept low, resulting in a larger return on investment. - Faster turnaround time
By enlisting the help of contract manufacturing or packaging in the industry, you can ensure that the process is completed quickly and accurately. They can often turn around your finished packaging and/or product faster than you could accomplish in-house because of the equipment and employees on hand. Contract manufacturers can produce things rapidly because they use the most advanced manufacturing tools and have extensive experience with them. This technique is made even faster by rapid prototyping equipment and CNC machining. This translates to a shorter turnaround time and a speedier time to market. - Scalability
Contract manufacturers usually negotiate low pricing on bulk raw materials, which allows them to keep costs low even as output grows. This means if you start small (say, a 1,000-piece limited run), you may quickly ramp up manufacturing without incurring much higher expenditures. Contract manufacturers keep a complete record of your product models and manufacturing preferences, allowing you to swiftly scale up or down production. - Quality control
Quality control will be in rigorous enforcement by contract manufacturers and food packing companies in Australia. Food producers, for example, should be recognized by FSANZ (Food Standards Australia New Zealand) and HACCP (Hazard Analysis Critical Control Points). So, you won't have to worry about the quality of your product and you'll be able to use their accreditations to sell products. - Ideal for small businesses or startups
Contract manufacturing and contract food packaging in Melbourne or elsewhere benefit small firms and startups the most. These businesses often lack the resources, finance or staff necessary to make things on their own. Contract manufacturers and contract packagers enable them to compete on a low-cost basis against much larger enterprises. - Focusing on your core business
Leaving the manufacturing and packaging procedures to the professionals allows you to concentrate on product development, sales and expansion. The right contract manufacturer can truly help in the expansion of your business. Additionally, they also free up your team’s time. So, instead of concentrating on production specifics, your team can devote their entire attention to branding, marketing and other critical activities.
Takeaway
Most contract manufacturers provide primary packaging services and many contract packagers provide some manufacturing services.
Consider asking yourself a few questions before getting into a project with them, such as: Do I have a clear understanding of my requirements and goals in relation to this potential partnership? Is it more cost-effective to outsource production rather than maintain it in-house? Is this a desperate attempt to save a project? You might want to revisit this decision based on the answers.
If you've decided you're ready to collaborate with contract manufactures or packagers after answering these questions, find one that's a good fit for your company.
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