Manufacturing companies often source out the packaging of their goods to other companies called in a system that is known as contract packaging. It is quite similar to contract manufacturing as you contract your work out to another source. These contractors may do the packaging in their own premises or at the client's site. Some contractors may also assist in the design of the packages and with testing applications. Contract packaging is often done for things such as: mass packaging of pharmaceutical products, beauty products, and consumer goods, etc.
The contractors have the necessary expertise, manpower and the required machinery to package various types of products. When a company out sources its packaging work it can save on extra employee costs, man hours and employee liability, etc. It is also a good idea to utilize contract packaging during a supply demand for your products as you may be under pressure to meet the demand from your customers or retail outlets. Contract packaging is also common during plant shut downs and when maintenance is being performed.
A fixed, mutually acceptable pay rate that is based on a per package basis or by the product’s weight is common practice in contract packaging. Depending on the type of goods that need to be packaged, a variety of services may be offered. Special firms can also carry out the packaging of various types of domestic and household goods. They usually offer transport services to ship the packed items to other destinations. Moving your house is usually a traumatic experience and a sore back does not help you in any way. Professional packers have the right equipment and the experience in packing and moving both heavy and fragile items.
If you are thinking about using contract packaging you should make sure that you study the costs involved as it may be less expensive in the long run to add a few employees or upgrade your own packaging department. If you do outsource your work it’s a good idea to use a packaging company that is close in proximity to your company. This will cut down on shipping costs.