5 Cost Benefits Of Going With Food Co-packer
We can expect excellence and growth working with a good Co-packer
A Food co packer generally works on the principle ethics of win –win business module. The believe and concern for commitment is the key factor to work with co-packer
Benefits of Working with Co- Packer
- Primary Investments
- Lead time to set Factory
- To establish operations
- Over Heads
- Minimum Quantity Run
Working with Co-Packer Insists of the Following Benefits:
1. Primary Investments
- While starting with organizations investments are of a huge factor to work with. Be it on the set up, labour, machineriesetc,once the organization is started the main issue lies within the selling of the prepared products.
- Co- Packers helps you to take the risk at ease as you have to concentrate only on marketing of the prepared products within less costing .
2. Lead Time to Set Factory
- If someone plans to set up for a factory, it’s a time consuming plus the accuracy is also questionable!
- Co-packers helps the parent organization to work more efficiently providing the required data they need along with the support.
In a recent Contract packaging survey, highlighted in Supply chain matters, 68 % of respondents who had invested in co-packing said it had increased their business flexibility, while 85% felt it helped cut costs and bring their margins way up.
“Co- Packers /Co- manufacturers bear necessary certifications which proves their efficiency for reliability and quality to work with”
Working with Co-packers provides Safety and Ease to do Business:
- The organization should have the basic way to deal the co-packer companies on the basis of trustworthiness. Its the concept to understand and work with proper standardization certified organization along with regular audits to be carried on to rely on the process. Some of the certification bodies who assure the standards are ISO,AGMARK,HALAL,OHSAS etc. Moreover supplier and organizational standards are also put on priority to meet up the agenda.
- Contract manufacturers have multiple customers that they produce for. Because they are servicing multiple customers, they can offer reduced costs in acquiring raw by benefiting from economies of scale.Hence the efficiency of choosing co-packers also lies in the more units, the less expensive the price per unit with trustworthiness.
3. To Establish Operations
- It’s a very hectic to establish some systematic operations, On part of which you can get one built in system from your co-packer.
- The reinforcement of operational system take a lot of hit and trials along with time, which can be avoided and a lot can be focused on other important parts.
4. Over Heads
- Overhead expenses include accounting fees, advertising,insurance,interest,legalfees,labour,rent,repairs,supplier taxes etc can all be put aside and be dependent on only one frame of work with co-packers.
- Manufacturing overheads are optimized in this scenario whereas one can focus on the administrative overheads.
5. Minimum Quantity Run
Mostly Co-packer organizations focus on cash flow to run the business smoothly, which resemblances in taking order of manufacturing from multiple customers. This readily provides with option of Minimum Quantity to start with product and thus can be progressed with ease of time
It also helps to regulate the seasonal manufacturing options along with proper control in production, by the co-packers
The Certifications which help an organization to lead in the market for their services are:
- ISO,AGMARK provides organizations with quality and system assurance
- OHSAS assures safety concerns for the working environment in an organization.