Packing up to go on holiday may not be possible for many this summer however, co-packing in the 3PL sector has never been so important.
Alistair Plant, our Divisional Warehouse Manager, shares a brief overview of how it integrates into the UK supply chain.
With much of the nation discovering the benefits of online shopping earlier this year, and currently showing something of a reluctance to return to the high street, manufacturers and retailers have found that co-packing has become their secret weapon in moving stock through the supply chain and on to the end user and consumer.
Co-packing, or contract packing to give it its formal name, is, by definition, a service that assists businesses take product in its raw state, or already packed in some way and repurpose that product into new packaging. This can involve packing into different quantities, for example, removing product from a pallet and re-packing for onwards distribution through the supply chain. This presents an opportunity for new product information to be communicated too; so things like new bar/QR codes can be put on packaging, either though a manufacturing process, or attached by us.
This gives manufacturers the opportunity to focus on their core business operations and let a third party (3PL) provider deal with the logistics of packaging and distribution, either through a pre-agreed schedule or on a ‘call off’ basis.
Whilst it has always been a key element of effective supply chain management and distribution, the recent uplift in ecommerce sales has perhaps highlighted its importance.
Many product manufacturers, some of whom did not integrate this service into their previous business models, have seen how co-packing and fulfilment can assist in warehouse management, stock control and the fluid movement of goods.
It can mean that businesses do not have to find additional warehousing and additional resources to be able to facilitate a new way of working, or cope with an unpredicted or seasonal uplift in demand. Or, it can play a vital part in the overall logistics strategy of any business where the products are sent through the supply chain.
It is particularly beneficial in a situation where products are manufactured for multiple retailers or brands. Pallets of product can arrive with us, we can re-pack, label and palletise and arrange delivery to our customers customer. It is a seamless solution and one which we have an enviable reputation for.
Talk to us about your long, or short-term logistics strategy, and how it could benefit your business and supply chain operations.