August 28, 2023 |

Packaging Contracting: Your Pathway to Professional Packaging Solutions

packaging contracting

Similar to outsourced product manufacturing, delegating packaging contracting to a third party can alleviate work your company cannot handle. Packaging often entails many steps, depending on the complexity of the packaging and whether items are sold as single items, grouped, kitted, counted or weighed.

In addition to the primary materials that contain an item, packaging can include many other components. Each component of your packaging can be a product of its own: bottle, box, pamphlet, flier, plastic, etc. The package may also include:

  • Ingredients
  • Instructions
  • Recipes
  • Warranty
  • Marketing Materials
  • Coupons

The Diverse Role of Packaging Contracts

In today’s dynamic business landscape, the art of packaging has evolved beyond its conventional role of merely encasing products. It has transformed into a strategic tool that encompasses innovation, sustainability, and brand identity. Amidst this evolution, the realms of packaging contract and manufacturing have emerged as pivotal players, driving efficiency, quality, and traceability across industries.

1. The Power of Packaging Contracts in Today’s Market

The concept of packaging contracts has transcended from a simple arrangement to a strategic partnership. Manufacturers, whether large-scale enterprises or startups, are recognizing the benefits of entrusting their packaging needs to specialized experts. Through packaging contracts, businesses gain access to factory packaging expertise that goes beyond the traditional bounds. Such collaborations bring forth seamless solutions, integrating design, material traceability, and innovation.

The nexus between packaging contracts and manufacturing is a testament to their intertwined significance. Manufacturers are leveraging packaging contracts to optimize their processes, focusing on their core competencies while ensuring superior packaging that meets evolving market demands.

2. Manufacturing Packaging: Where Innovation Meets Material Traceability

In the realm of manufacturing, packaging plays a dual role – it safeguards the product and conveys the brand’s essence. As consumer expectations escalate, the need for meticulous manufacturing of packaging becomes evident. Manufacturers are now striving for packaging solutions that not only enhance visual appeal but also prioritize sustainability and material traceability.

Advanced manufacturing processes are driving packaging container material traceability, ensuring transparency and accountability throughout the supply chain. This traceability empowers businesses to track the journey of packaging materials, from sourcing to the end consumer, fostering consumer trust and sustainability initiatives.

3. The Tech-Infused Landscape of Packaging Manufacturing

In an era dominated by digitalization, the packaging manufacturing landscape is undergoing a digital revolution. Cutting-edge technologies like Packaging ERP (Enterprise Resource Planning) and specialized packaging manufacturing software are reshaping the industry. These software solutions streamline operations, optimizing production schedules, inventory management, and quality control.

ERP packages tailored for manufacturers offer a centralized hub for managing resources, ensuring efficient workflows, and enabling data-driven decisions. This digital infrastructure empowers manufacturers to respond swiftly to market trends and customize packaging solutions while maintaining cost-effectiveness.

4. Custom Packaging Trends and the DIY Market

The world of packaging is witnessing a surge in custom packaging trends, especially in the context of the DIY market. As consumers embrace creativity and personalization, businesses are tailoring their packaging to resonate with this sentiment. From eco-friendly materials to unique designs, custom packaging caters to the desires of a diverse and discerning clientele.

In this context, envelope packaging ideas have gained traction, offering a versatile canvas for creative expression. Businesses are embracing innovative envelope designs that not only protect the product but also serve as a delightful unboxing experience.

In the pursuit of streamlined operations and consumer convenience, package codes and lot numbers have become integral. These identifiers facilitate product traceability, quality control, and recall management. Manufacturers are harnessing technology to implement efficient coding and numbering systems, enhancing their ability to monitor and manage products throughout their lifecycle.

Bundled packages further exemplify the synergy between packaging, manufacturing, and market demand. Offering convenience and value, bundled packages cater to the preferences of modern consumers seeking comprehensive solutions.

Pioneering the Future of Packaging Manufacturing

In the ever-evolving landscape of packaging, the convergence of packaging contracts, manufacturing prowess, and technological innovation is reshaping the industry’s trajectory. As businesses embrace custom packaging trends, leverage digital solutions, and prioritize material traceability, they are propelling packaging into a realm of strategic significance. This dynamic synergy not only enhances product appeal but also elevates brand identity, sustainability, and consumer satisfaction. In the journey ahead, packaging will continue to transcend its traditional boundaries, shaping a future where innovation and functionality coexist seamlessly.

Packaging Contracting FAQs

What is Contract Packaging?

Contract packaging refers to the engagement of a third-party company to devise packaging solutions for your merchandise. This external entity, often denoted as the contract packager, furnishes a spectrum of packaging remedies, encompassing primary, secondary, tertiary, or a fusion of these, tailored to suit your product requirements. By entrusting your packaging needs to this service, you can redirect your energies toward the manufacturing process.

One product type that exemplifies complex packaging is the pharmaceutical. It may feature a single dosage in a plastic bubble, alongside other pills, each covered with a removable backing. The next layer surrounding the sleeve of pills could be the box, but it could be sealed in plastic. Inside the box, you might insert instructions and a list of side effects. The outside of the box will feature dosage instructions, ingredients, and the brand logo and messaging.

Subsequently, numerous units of secondary-packaged pills are amalgamated into more capacious corrugated containers, aptly designated tertiary packages. These latter containers might also undergo shrink wrapping to facilitate conveyance. Tertiary packaging serves the dual purpose of simplifying transportation logistics and constituting constituent elements of assorted product kits.

With each supplementary element introduced, the intricacy of packaging grows exponentially.
For enterprises specializing in manufacturing, packaging can be a challenge and burden. This is why contract packagers assume their pivotal role, providing remedies to intricate packaging dilemmas.

What Distinguishes Contract Manufacturing from Contract Packaging?

Contract manufacturing and contract packaging are two distinct operational paradigms in the realm of outsourcing production processes. They serve disparate functions within the supply chain, each catering to specific needs and objectives.

Contract Manufacturing: Contract manufacturing involves the delegation of the entire production lifecycle of a product to a third-party entity. This encompasses the conception, creation, assembly, and often packaging of the goods. The contracting company, also referred to as the contract manufacturer, assumes responsibility for producing the item as per the specifications and requirements outlined by the hiring company.

In essence, contract manufacturing entails the external production of the entire product, from raw materials to the final packaged item. This practice is particularly advantageous when the hiring company lacks the requisite facilities, expertise, or capacity to manufacture the product in-house.

Contract Packaging: Conversely, contract packaging centers around the post-production phase, specifically focusing on the packaging and presentation of goods. When engaging in contract packaging, a business employs the services of an external packaging specialist, known as the contract packager. This entity handles the meticulous task of selecting, designing, and implementing the appropriate packaging for the product.

Contract packaging encompasses various layers of packaging, including primary (the immediate encasement of the product), secondary (the additional casing that often carries essential information), and tertiary (bulk packaging for transportation and distribution). The objective is to ensure that the product is adequately protected, aesthetically appealing, and compliant with regulatory requirements.

Distinguishing Factors: The key distinction between these two concepts lies in the scope of operations. Contract manufacturing entails the comprehensive fabrication of the product itself, while contract packaging deals exclusively with the final presentation and safeguarding of the product.
Basically, contract manufacturing outsources the entire production process, including manufacturing, assembly, and packaging, while contract packaging is solely concerned with the art and science of packaging to enhance the product’s market readiness and overall appeal.

How to Manage Third Party Packaging with SOS Inventory

SOS Inventory was designed to facilitate the tracking of third party contractors allowing your business a full view of operations both on and off premises. Your account can track every workflow stage and include an unlimited number of locations. By granting your third party packaging contractor account access, he can make updates to the account using the permissions you grant him.

Track materials, costs, workflow actions, labor and overhead plus lots, serial numbers and batches. Designed to handle all types of manufacturing, SOS Inventory can make managing your inventory easier, no matter where it is anywhere in the world.

Thousands of companies use SOS Inventory to manage their businesses.    Free trial