Supply Chain Performance
Supply Chain Performance

Copacking: all you need to know about this concept

Creating attractive packaging for the customer or end consumer is one of the most important parts to take into account in our sales strategy, especially in sectors such as…

On February 17, 2023

Creating attractive packaging for the customer or end consumer is one of the most important parts to take into account in our sales strategy, especially in sectors such as alcoholic beverages or cosmetics and beauty. Many times it is interesting to offer a product in a certain way or with an extra or complementary product so that the consumer perceives it as a “prize” purchase with a lot of utility and reward their commitment to the brand.

At FM Logistic, as experts in copacking services, we have prepared this post so that you have all the information you need about this concept.

What does copacking mean?

By copacking, we are referring to a logistics service that coincides with the repacking process. A company commissions these services to make a product more innovative or to offer it in a more customer-oriented way to meet individual needs. Other names related to this service are: comanufactoring, kitting or handling service.

So… What does a copacker do?

The co-packer is responsible for repacking a product to achieve a final goal. There are several types of co-packing:

  • Co-packing: the meaning of copacking is to repackage products to make them more attractive or to offer added value. This is the example of alcoholic beverages when they offer with the sale of one of their bottles, a gift glass. It is not something you have to have when you buy a bottle of alcohol but it is an extra for the customer.
  • Comanufactoring: this service is very similar to copacking but is more related to the process of product quantities and units. For example, we talk about comanufactoring when we combine several quantities of chewing gum to sell a pack of 1000 units.
  • Kitting: this is a copacking service closely related to the electronics and technology sector. A good example is when a television or a computer is sold including in the order, free of charge, a complementary and necessary accessory such as HDMI cables or a service subscription.

Factors to consider before hiring a copacking company

Copacking, also known as contract manufacturing, is the service that many companies outsource to package and embellish the appearance of their products. Most of the time, companies demand this service because they have neither the experience nor the necessary machinery to carry it out in their facilities. The most important factors to take into account when contracting this service are:

Safety and quality standards and policies

It is very important to know the warehouse or the place where the process is going to be carried out. We must make sure that they comply with quality and safety standards in order to trust our products. Likewise, it is interesting to know if that space has certifications or perform audits from time to time.

Bidirectional communication

It is important to have a constant and fluid communication with those in charge of co-packing your products in order to solve any problem that may occur, to know the capacity of the production line and that the workers who will manage the goods know well the characteristics of each product. On the other hand, it is also important to have a good two-way communication with the co-packer in order to make any changes that may be required in time.

Location

This point is closely related to the previous one. It is really advisable to have a good location close to the place where the copacking services are performed because that way you will be able to visit the facilities and supervise, if you consider so, the production line. From an environmental point of view, it is always interesting that the locations of the customer and the copacking company are close to each other in order to reduce, as much as possible, the carbon footprint originated by the transport of goods.

References

It is important to know references and success stories of the copacker. You can seek information through recommendations from other customers or by looking for some kind of reference on the website of the different logistics operators that offer this service.

Why choose FM Logistic as an external co-packer?

In FM Logistic we have more than 30 years of experience in this service and we have more than 35 centers dedicated to this logistic solution. We are considered the number 1 in this service in Europe and we have technology applied to this copacking service and a continuous improvement department.

We also offer copacking solutions adapted to the needs and sales strategies of our customers. We know that making a product known in an attractive way is the success of marketing. We do not forget, of course, to create sustainable packaging to take care of the environment and the planet. At FM Logistic we are sustainable in our supply chain, we avoid the use of plastics and other toxic materials, we prioritize the use of recycled materials and we reduce the size of packages as much as possible to optimize transportation. All co-packers at FM Logistic are highly trained and constantly learning to adapt to the needs of each customer.

On the other hand, in FM Logistic we have multi-activity warehouses so we manage different services under the same roof or “one roof” so the fixed costs derived from the activity are shared and we can offer more competitive prices.

Advantages of outsourcing the co-packing service

If the copacking service is outsourced to a company that has many years of experience in this service, it will be a positive point for the brand since it will achieve an optimal and efficient final result.

Another advantage is that you will be able to reduce costs derived from the transportation of the products to the different suppliers since everything will be centralized in a single warehouse.

In which sectors is co-packing of goods most used?

The copacking of goods is related to all kinds of sectors such as FMCG, technology and electronics and, above all, to the alcoholic beverages and cosmetics and beauty sectors because they are two sectors related to “pleasure shopping” and not so much to basic necessities. That is why it is possible to play more with the packaging and with the offer of certain extra products.

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