Co-Packer Fulfillment - The Co-Packer Advantage

By Bill Del

Tosta Co-packing services range from packing other people's products to manufacturing (and packaging) the products themselves. According to the co-packing industry, roughly 50% of all products available on supermarket shelves are produced by co-packers. Co-packing facilities range in size from small co-packing bakeries to large multi-product co-packing facilities.

Many companies make extensive use of co-packing facilities. Although they may have different reasons concerning why they use co-packers, they do share many of the same processes and co-packing advantages. Most notably, co-packing fulfillment helps companies operate profitably and efficiently. In part, this is accomplished by:

1. Reducing costs

Co-packing can reduce a wide range of costs. These costs can include equipment, facilities and the need to rent additional space. In many cases, it may also reduce the need for additional personnel and training. Since co-packers often buy in bulk, their clients may also benefit from their lower costs and on-site storage facilities.

2. Similar product experience

Many co-packers may already possess similar product experience as well as established production lines. This can significantly help reduce manufacturing, training and production costs. Furthermore, it can greatly simplify the entire order process including the packaging and shipping of the final products.

3. Licensing

Obtaining the necessary government and state licensing can be a time-consuming and difficult process. Most co-packers have already gone through this process and are very intent on ensuring they continue to meet all the necessary regulations including any requisite safety regulations. They will also have surmounted any zoning or business restrictions that some of their clients might otherwise have had to face.

4. Established vendors

Most co-packers have established lines of credit, a list of established suppliers and the necessary labeling and packaging expertise. This can greatly help a company requiring co-packing services while significantly reducing their costs and efforts in obtaining reliable suppliers. It also helps ensure an accurate cost overhead while reducing product manufacturing lead time. When necessary, co-packers can also provide direction to additional suppliers and vendors.

5. Experience

Most co-packers have a wealth of experience and knowledge. In many instances, they can help cut development and production costs while providing valuable feedback and accurate scheduling.

Companies of all sizes use co-packers for a variety of reasons. Co-packers can help small and entrepreneurial companies with limited capital to survive and grow while enabling large and establish companies to continue to profit and build market share. In all cases, it relieves much of the focus on production and instead allows companies to focus on the marketing and selling of their products.

Bill DelTosta is the Director of Sales & Marketing at the Mid-Hudson Workshop for the Disabled (MHW). Since 1948, Mid-Hudson Workshop, a non-profit organization, has helped many businesses of all sizes reduce costs and save valuable resources by providing Outsourcing Services. It also offers an award-winning co-packing service. MHW provides meaningful employment opportunities for the NY Hudson Valley's Disabled Veterans and other Physically & Medically handicapped residents.

More information about MHW's 100% self-sufficient success and its many outsourcing services is available on its website at www.midhudsonworkshop.org. Bill can be reached at 845-471-3820 or bill@midhudsonworkshop.org to schedule a TOUR of MHW's 52,000 Sq Ft facility and discuss its cost-reducing services.