Consumer packaged goods (CPG) represent a wide range of products. Generally, CPGs are distinguished from durable goods that have longer useful lives. Consumer packaged goods, on the other hand, are regularly used-up, worn-out and replaced. Food, beverages, clothing, household supplies and even tobacco fall into the category, which accounts for some of the largest companies serving the public retail sectors.
The reach of consumer goods is so broad and important to the economy that people’s behavior buying everyday products furnishes highly valuable information. Forward-thinking producers, packagers and retailers use observations in consumer packaging to stay ahead of trends and respond to shifting public demands. And much like the modern information cycle, which requires constant attention; changes happen quickly in CPG markets.
With so much at stake, why would major manufacturers devote precious resources to packaging, logistics and fulfillment?
The answer for many progressive organizations is to rethink their roles in these areas and turn to professional turnkey providers for essential services. In many ways, contract packagers offer advantages producers cannot create in-house, leaving them in a better position to navigate modern markets.
Packaging Contractors Bring Unique Expertise to CPG Projects
Large companies are in the business of producing select, specialized products, which gives them deep insight into the ways and means of their primary industries. The last thing CPG companies need is to become experts in an entirely separate discipline. As retail markets become more competitive and consumers demand a personal touch, large CPG companies are moving away from in-house packaging operations, in favor of contract partnerships. Handing-over packaging and fulfillment duties liberates producers to focus on their main money-makers. Rather than maintaining facilities, staff and cutting-edge product packaging capabilities, increasing numbers of producers are finding a competitive advantage using outside packaging companies.
Partnering with a competent packaging provider brings advantages to the CPG marketing process.
Varied project experiences within the industry; for example, prepare packagers to respond to a broad range of needs – from consultation to complete project management. By working in diverse industries, contract packagers stay tuned-in to consumer preferences and winning design combinations. And by maintaining relationships with suppliers, designers, and logistics specialists packaging companies are able to quickly match services with client needs.
Consumer Preference Shapes the Best Approach
In the end, marketing, packaging, advertising and merchandising are all focused on closing sales. As a result, the fastest way to each consumer’s comfort zone is through product packaging that speaks directly to his or her values and requirements. In today’s retail markets, contract packagers are in a better position to make the connections shoppers are looking for.
- Speed and Accuracy – Producers need fast results, so contract packagers furnish the flexibility required to change course quickly. Maintaining multiple well-placed facilities keeps turnaround times low and enables mid-stream adjustments in-house packagers cannot accommodate.
- Responsible Practices – Consumers shop with sellers sharing similar values. Sustainability and responsible production practices are important to shoppers, as well as safety and oversight. Turnkey packaging companies maintain proper credentials and certifications for food, pharmaceuticals, and other specialized goods. And they use recycled materials, emerging technology, and efficient practices to reduce environmental impacts.
- Healthier Food Alternatives – Standard packaging lines canning fruits and vegetables are still a part of the industry, but there is more to modern packaging than these typical, ordinary containers. Innovative packagers support the public’s call for fresher foods by using advanced materials and methods that not only preserve flavor and freshness, but also present food products in their most favorable light.
Each CPG producer has distinct goals, but increasing profits is the bottom line for most companies. Contract packagers that help large firms make money are changing the way CPG companies do business. By integrating packaging operations into distribution networks, for example, CPG innovators are partnering with packaging professionals to save millions in supply chain costs. These and other strategies result in lasting, productive relationships between packagers and industry-leading companies. It is no surprise that quality, safety and professional leadership are key characteristics sought by companies needing packaging help.
As public appetites evolve and competitive CPG industries continue to specialize, more and more companies are learning the benefits of packaging partnerships. Experienced packaging contractors are able to guide projects from start to finish, without sacrificing any of the benefits of in-house capabilities. In fact, hiring professional packagers can result in shorter turnaround times, seamless compliance, greater flexibility, and reduced costs.
Contract packagers operate across diverse consumer industries, so they are experts in package design, logistics technology, safe-handling and other related disciplines. Such a high level of packaging assurance is hard to replicate using internal fulfillment structures. By leaning on established packaging partners instead, CPG producers benefit from contract providers’ experience and existing packaging industry resources.
Let Assemblies Unlimited be your preferred packaging partner. Contact us to learn more.