Contract manufacturing made simple
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The term wage manufacturing is not easy to grasp for someone who has never heard the word. Contrary to the expectation of the term, this word has nothing to do with wage manufacturing. The bottom line is that it means nothing more than outsourcing a company’s production. So let’s say that a company sells ketchup. Then this company can go to a contract manufacturer and shift production there. This can also be done in parts.
This means that a company can take care of marketing and sales completely, because it has handed over production and the purchase of materials to the contract manufacturer, and even saves costs in the process. In relation to the ketchup example, the company can transfer the production of the ketchup bottles to the contract manufacturer.
Definition: What is contract manufacturing
Contract manufacturing in the packaging industry is the outsourcing of a company’s production of packaging materials to a contract manufacturer, who then takes over this contract production for that company.
The contract manufacturing industries
In contract manufacturing in the packaging industry, there are various sectors in which a company can specialise or expand its range.
Food / Food supplements
Shelf life and dosage ...
Food packaging is incredibly versatile. Not only the size and design are important, but also other important factors in the production of the packaging must be taken into account. The shelf life of the product must be guaranteed and the dosage should be taken into account. Besides the durability of the packaging, a particularly essential factor is aseptic filling. But even if all these aspects are taken into account, at the end of the day the question is which packaging suits the product. The food manufacturer should know which target group he wants to address and how to present the product to this target group in the best possible way. The packaging should also be easy to handle and protect the product in the best possible way.
Pharma
Planning the processes ...
The pharmaceutical industry also needs packaging. In this sector, they rely on machines that can be cleaned quickly and simply. In addition, special attention must be paid to the planning of the process, as otherwise tablets, for example, will come into contact with moisture.
Chemistry
Correct dosage ...
The chemical industry has high requirements and guidelines, so that the contract manufacturer in this industry usually only works with machines with precise filling accuracy. This is because the dosing of chemical products is particularly important. Since some chemical substances are hazardous, the choice of material should be well considered. But even for substances or liquids that are less hazardous or not hazardous at all, it is important to choose the right material. As the chemical industry is incredibly large and versatile, it is one of the top three sectors in the packaging industry.
Cosmetics
Creative Design ...
Cosmetics/natural cosmetics have a wide range with many different products. To do justice to this versatility, the packaging is individually adapted to the spectrum and individuality of the products. In this industry, creative design is the most important aspect. Materials, protection and ease of transport should be decided separately for each product. What stands out in this category are the market trends that should be taken into account in production. Depending on the target group, one can also think about sustainability, as especially the younger generations tend to choose products whose packaging has been produced sustainably. This is also interesting for small-volume cosmetics.
Industrial goods
Security, stability ...
The industrial goods sector has a very wide range and places particular emphasis on safety and stability. Not only are goods of different sizes packed here, but also the sensitivity of the industrial goods is not always the same. No general solution can be prescribed for such products. For industrial goods, a type of packaging is chosen individually or combined with each other.
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Contract manufacturing areas
In the packaging industry, it is not only possible to transfer the production of the packaging to the contract manufacturer, but also other, additional areas.
Wage/Product Development
Contract manufacturing is not only concerned with the first version of a package, but also often includes the development of products or recipes. So if the article is still being developed further or if something needs to be improved afterwards, the contract manufacturer supports this development and subsequently produces, packages and markets the expanded product.
Contract packaging
Besides all the extended areas, there is also the area of simple packaging. The packaging represents the product, so to speak, and gives the customer the first impression, which should be positive. In simple packaging, there are various materials, such as metal foil, corrugated cardboard and paper, that are used. Especially in this day and age, more and more are opting for sustainable packaging. With recyclable materials and environmentally friendly packaging, you protect nature and the future.
Contract filling
The contract filling sector is an essential sector with a special focus on the food and chemical industries. The contract filler works here with special machines, with which, for example, drinks and liquids or pastes are filled into tubes. The range of packaging machines is particularly interesting here. One machine can fill into bags, the next into cans, another into tubes and yet another into drums.
Logistics
Especially for small and medium-sized enterprises, the topic of logistics is not easy. It often takes a lot of time and effort to take care of all the logistics. The costs for a dedicated hall can also become a problem. The contract manufacturer therefore offers to take over the entire logistics. Then the company no longer has to worry about the much too expensive warehouse or the vast amounts of time and nerves it would otherwise have put into it. Just like the other areas, the contract manufacturer takes this part off the company’s hands in return for wages.
Fullfilement solutions
This offer is particularly interesting for companies that do not want to or cannot develop further for reasons of space. Orders can be handed over to the contract manufacturer, who then takes care of everything. In addition, there is the production, the development up to the automated dispatch to the customers in e-commerce shops.
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