What is Co-Packing? Why It Helps Your Business Grow

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Have you been curious and wondering about “what is co-packing”? With the evolution of the global economy as a whole, outsourcing has evolved in various aspects, and so has contract packaging. More and more businesses are eager to find out what co-packing services are, and why so many businesses are using these services.

In this article, we will discuss:

1. What is Co-Packing and How Does it Work?

2. Benefits of Co-Packing

3. Where to Find a Good Co-Packing Company

 

What is Co-Packing and How Does it Work?

Co-packing, also known as contract packaging, is the overall process of assembling a product or few products into its or their final finished packaging. Co-packaging tasks range widely from something as simple as adding a product barcode sticker to one as complex as planning, designing, printing and fulfilling the entire package.

Depending on the product, the final packaging may come in a variety of forms. It might include a thermoformed packaging, plastic clamshell packaging, or blister packaging. Other packaging forms could also be a simple plastic bag, a standing display, a corrugated retail tray, or a transport tray.

Since co-packing implies a change in the product (packaging, size, content, labeling), and there are hundreds of different ways to get products ready for retail sale, it is wise to have some sort of agreement signed before proceeding to use the co-packing services.  Moreover, there are numerous technologies involved in packaging such as kitting, bundling, and sealing products that only the contractor knows. Therefore, it is a common practice to sign an agreement whereby a firm (let’s call them firm A) allows another firm (firm B) to handle the packaging of its products. This agreement allows firm A to focus on its product-making and marketing specialties, and firm B to focus on the packaging specialty.

 

Benefits of Co-Packing

After understanding what is co-packing and how it works. Let’s look at why many firms are considering co-packing as a way of streamlining their business operations. There are 3 main reasons:

Cost – The primary driver is cost. When the co-packers already have their equipment, resources and staff in place, outsourcing packaging works can really save managing and production costs. Technology – Co-packers normally have invested a lot of resources in technology that helps to make the packing process smooth and time-efficient. They specialize in one or a few specific tasks in which many companies lack this technology or skills. Spike in Demand – A co-packer’s services can come in handy if a company is experiencing a spike in demand for its products. This sudden increase usually creates an unbearable burden for the company. Therefore, it needs to enter into an agreement with a co-packer to meet the packaging requirements.

 

Co-packing has become an important competitive advantage for companies aiming to increase operational efficiencies. Reduced costs, specialized technology and flexibility are the main benefits that firm A gets from outsourcing its packaging works to firm B. This kind of arrangement is most popular in fulfilling occasionally large projects without taking on extra staff and equipment.

 

Where to Find a Good Co-Packing Company

A co-packer is a contract packaging company that packages and labels products for clients. Finding a good co-packing company can be a tedious job. This is because each product has its specificities and packaging requirements; for example, fragile materials or temperature-sensitive goods. Working with specialists ensures products are handled in strict compliance with the standards enforced by their industrial sector.

KINGHOME (also known as KHPack), a 33-year-old co-packer, is no doubt one of these specialists in the packaging industry.
Founded in 1988, KINGHOME has been manufacturing and packaging high-quality prints such as custom packaging, displays, boxes, cards, tags, stickers, polybags and more. With over 30 years of experience, it has packaged more than 4.5 million pieces of products, from the eyewear industry to the beauty and accessories industry.

KINGHOME mainly offers co-packing services in 3 main areas:

Kit-Packing: This is the process of combining a number of SKUs in one package. KINGHOME’s kit-packing service reduces customers’ pick and pack costs. Display Assembly: Having served customers such as Walmart, Costco and Disney, KINGHOME has developed high-standard display packing guidelines that help customers reduce 50% warehouse costs and 75% labor costs. Supply Chain Management: With over 30 years of industry experience, KINGHOME helps its customers to integrate with various suppliers, and manage warehouse and logistics issues. These integration helps its customers shorten 45% of supply chain response time.

KINGHOME is not just a packaging supplier, it is the ultimate one-stop-solution provider for emerging and established brands. As a co-packer, its ability to provide an “end to end” solution from design, sourcing, procurement, packaging and transportation accommodates the customers’ every business need.

To facilitate the globally rising demand for co-packing, over the years, KINGHOME has expanded its Taiwan business to China, and Japan. It now has offices in 5 cities (Taipei, Tokyo, Dongguan, Wenzhou, and Shanghai Free Trade Zone), and has developed partnerships with clients in 35 countries.

Let us bring your ideas to life, and make your brand’s vision a reality! 

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