Last week, IMS launched a new, free E-book on co-packing entitled “The essential guide to working with a co-packer.” We wrote it as an answer to many questions we’ve gotten over the years, particularly for customers that require much higher production volumes.
Here are a few of the subjects we cover in this free E-book
Do I hire a copacker?
There are basically two ways you can deal with the situation of having to significantly increase your production volume. Either hire more people and equipment or hire a co-packer to do the production for you. Co-packers can seem expensive but they are an option worth considering because they can take a big load off your shoulders. Not only can they take over the production duties but they can also meet industry production regulations and ensure your product has the right certifications for the market. You could do all of that yourself but wouldn’t you rather just concentrate on sales?
What to look for in a co-packer
Co-packers are specialists and you need to find one that has an affinity with your product. They might specialize in liquid filling, shrink-wrapping or blister sealing. Ideally, you’ll find one that produces a similar product or has the specific equipment your product needs.
You can search for them through specialized associations such as the PLMA (Private Label Manufacturers Association) or the Contract Packaging Association. You can also check out trade magazines and search the internet (look for co-packer or contract packager). Trade shows are also an excellent place to meet and discuss with them.
Start with phone interviews, to save time. Ask questions about their facilities, number of employee and any special licences that you know will be required. Are they offering a turnkey solution? How do they control inventory?
If it all sounds interesting, ask for their safety record, their organizational chart and warehousing system.
You can then ask for an onsite visit. Check for cleanliness, condition of the equipment and see their quality control in action.
Main topics to be covered in negotiation are cadence, packaging, supplies and of course, pricing. Other topics include quality control, record keeping, communications structure and payment terms.
Check out our free E-book
Choosing a co-packer and drawing up a contract with them has its complexities but the steps can be broken down into smaller, simpler tasks.
Our goal with this free E-book is to make the whole process easier so you can get to that higher production level faster!
Find out more, download our free E-book on co-packing now!