Considering contract versus in-house packaging
What should you consider when deciding whether to use contract packaging or to install an in-house packaging system? Weighing benefits and costs requires careful analysis. This article highlights three areas you'll need to evaluate before making a decision: customer service, quality, and costs.
Does your company have a new specialty product that's ready for market but has an unknown product maturity cycle? Are you maintaining an aging in-house packaging system that's ineffective, and are you worried that replacement may not be the solution? Do you have an established customer who now requires specialized packaging, but you aren't sure how to meet their needs? These situations may not justify buying or replacing an inhouse packaging system. If you choose an off-site contract packager as an alternative, what liabilities and costs are yours and which ones will the contractor assume? Examining benefits, including those that go beyond the bottom line, requires that you consider: Maintaining customer service, both during and after the packaging conversion. Evaluating the quality of the contractor's work. Assessing financial costs and benefits.