7 Advantages of Contract Manufacturing to Food Business

processing apples for co-packing
Co-Packing vs. Private Label : The Differences
January 6, 2022
Top 5 Frozen Food Myths
February 1, 2022
advantages of contract manufacturing

advantages of contract manufacturing

Have you ever thought about exploring the advantages of contract manufacturing as a small food business owner or manufacturer? The growing demand for ready-to-eat food thanks to increasing population and urbanization makes outsourced manufacturing more essential than ever in running a thriving food and beverage business. That’s why experts project the global contract packaging market to reach $78.14 billion by the end of 2023.

Contract manufacturing and contract packing are more or less the same. Sometimes, you need a partner to help you produce the product, hence the name contract manufacturer. All the same, your business might also need packaging as a stand-alone service, hence the name contract packaging. 

But what exactly do contract manufacturers offer when it comes to the production process and economies of scale? Here is a quick guide highlighting why small businesses should hire a contract manufacturer, the benefits of contract packing, and why it’s a wonderful option for your business. 

Why Partner with a Contract Packing Company?

Operating a food business comes with various adventures, such as testing new recipes and adding food labels to keep customers enjoying your products. But as your food products get better and tastier, there is a high likelihood that the demand will be overwhelming. That’s where a reputable contract packing company steps in to save the day. With the right partner on your side, you can easily meet scaled demand while focusing on critical areas of your business, such as expansion. 

The outsourced manufacturing company will assume time consuming duties, such as packaging, freeing you to attend to pressing customer needs. Likewise, you’ll also reduce unnecessary labor costs.  Here are other signs that should prompt you to partner with a contract packing company in a bid to streamline your business processes. 

  • Increased demand for long shelf life food products
  • Need for increased manufacturing capital to scale production
  • Need to source ingredients, raw materials, and packaging materials 
  • More storage for the final product
  • Need to improve production efficiency
  • You want to keep up with the competition  

 

frozen blueberries

Benefits of Contract Packing

Partnering with a contract packing company is a solid plan, especially if you want to take your food business to the next level without incurring significant costs on scaled infrastructure and production. In return, your business benefits in the following ways: 

  • Reduced Costs

How much do you think it will cost you to set up a large-scale packaging or production facility powered by modern technology? The costs can run into hundreds of thousands of dollars, if not millions if you also factor in annual salaries for the employees required to keep the operations going. These costs can be overwhelming to an average small business owner.

On the other hand, hiring a contract packing company saves you from stressing over these costs. Contract manufacturers already have the infrastructure and resources in place, ready to help take your business to the next level.

  • Saves You Time and Money

Let’s face it. Scaling is one of the most expensive steps of building a successful business. It comes with new equipment, technologies, and business practices. Your pockets might run dry while building the new infrastructure, long before you’re able to ramp up production. 

On the brighter side, partnering with a contract packing company minimizes the hidden costs associated with typical scaling. For instance, you don’t incur training costs for onboarding employees to the scaled production infrastructure. Also, you only need a reasonable upfront investment and you’re good to go. This saves you time and money in the long run.  

  • Faster Turnaround 

Running a large-scale production facility requires modern technology and significant resources in terms of human and monetary capital. This is not to mention the commitment you need from your team to sustain a reliable production line from start to finish without sacrificing quality. 

The good news is that you don’t have to worry about all this if you partner with a contract packing company. Your go-to service provider has laid the groundwork with the necessary facilities, technologies, and resources. You get to enjoy shorter lead times with greater accuracy, precision, and quality. 

  • Warehouse and Logistics Support

Different food products require varying storage and warehousing solutions to keep them fresh and in pristine condition. Keeping up with storage or logistics requirements can be pretty daunting as you scale. The last thing you want is to delay your customers’ orders. Or even worse, deliver products in stale condition.

You can streamline your warehousing and logistics by partnering with a reliable contract manufacturer. Industry-known contract packing companies have facilities and the right technology to offer long-term logistics support.  

  • Increased Scalability

Every small food business owner has a dream to expand their operations, no matter how many people they serve at the start. However, scaling doesn’t happen overnight. Moreover, you might also find yourself in a position where you need to scale with seasonal demand. In that case, building a new production facility won’t yield a favorable ROI, especially if you’re not going to use it throughout the year.

On the other hand, partnering with a contract packing company allows you to scale and ramp up production as you go. These companies have the means, resources, human capital, and technology to meet your seasonal demand needs as they arise. That said, you can actually scale up without even shifting locations. 

  • Certifications

Food businesses must meet stringent guidelines and certifications put in place by oversite authorities. These requirements vary depending on the type of product handled. For instance, certifications for food products production and distribution in the US include:

  • ISO 9001 for manufacturers and service providers
  • ISO 2200 for food safety management in the entire supply chain
  • FSSC 22000, providing guidelines for food safety management systems
  • BRC Global Standard for food safety

This is just a snippet of the certifications a typical food and beverage business should fulfill. Getting these certifications plus dozens of others at the state government level can be pretty hectic, but not if you partner with a contract manufacturer. Contract packing companies have all the necessary certifications for running their facilities, saving you time and money. 

  • Experts on Your Side

Running a successful food business is not all about getting access to the necessary resources. Complementary resources, such as packaging materials won’t add many benefits if you don’t know how to leverage them. In other words, you need experience to scale without much hassle while also guaranteeing quality products for your customers. 

Partnering with a contract manufacturer surrounds your business with experienced and knowledgeable professionals in the industry. These people work with many other businesses like yours. They definitely have a comprehensive solution to every hitch you’re likely to meet on the way. 

Benefits of a Good Contract Packing Company

man processing tomatoes

Choosing a reliable contract packing company can be pretty daunting at first. However, finding the best one, such as  SunLeaf™ Foods, comes with an array of benefits. We have the resources and human capital to handle any contract packaging project, depending on your needs, budget, and specifications. 

At SunLeaf, we build long-term mutual relationships with businesses and packers alike to bring you custom, scalable, and cost-effective solutions. Our precision and product quality standards ensure that every penny you invest in our services pays off. With our services, you can rest assured of success, safety, and compliance with all the necessary industry certifications.

Businesses like yours turn to SunLeaf, thanks to our attention to detail and commitment to safety. Contact us today for a free consultation and more insights into our packing solutions. When you partner with us, you’ll experience all the advantages of contract manufacturing

//bugherd code (function (d, t) { var bh = d.createElement(t), s = d.getElementsByTagName(t)[0]; bh.type = 'text/javascript'; bh.src = 'https://www.bugherd.com/sidebarv2.js?apikey=cucpwfakx1fanfafazeanw'; s.parentNode.insertBefore(bh, s); })(document, 'script'); piAId = '639861'; piCId = '15947'; piHostname = 'pi.pardot.com'; (function() { function async_load(){ var s = document.createElement('script'); s.type = 'text/javascript'; s.src = ('https:' == document.location.protocol ? 'https://pi' : 'http://cdn') + '.pardot.com/pd.js'; var c = document.getElementsByTagName('script')[0]; c.parentNode.insertBefore(s, c); } if(window.attachEvent) { window.attachEvent('onload', async_load); } else { window.addEventListener('load', async_load, false); } })();