Contract Packaging or In-House Packaging

Whether a packager is a start up company or a Fortune 500 that delivers a wide range of products to the general public every day, there are advantages and disadvantages to packaging your own product. A quick analysis of each given packaging project will help to decide which is better, in-house packaging or contract packaging.

Others new to the packaging industry may feel they do not have the necessary knowledge to run sophisticated packaging machinery. Or perhaps new companies simply do not have the space and labor necessary to operate their own packaging machinery. Even larger companies may find reasons to employ a contract packager from time to time. Short runs of special products, such as holiday editions, may be sent to a contract packager so as not to interrupt the normal packaging operations of the facility. New products or test products may also be sent to a contract packager, under the same short run logic mentioned above or because the facility simply does not have the necessary machinery to run the product. Though various packaging machines such as fillers, cappers and labelers can usually run a variety of products, different machines may be necessary for different products. For example, a thin, free-flowing product will run fine on an overflow filling machine, but a thick, viscous product usually will not.

So small or large, there exist reasons for companies to consider using a contract packager for their product or products. On the other hand, there also exist reasons for these companies to purchase their own packaging machinery as well. Almost all packaging machinery, from container cleaning equipment to filling machines, capping machines and labeling equipment, is manufactured in various levels of automation. For a start up company, manual or semi-automatic machinery may be enough to fulfill all production needs. Tabletop packaging machinery is even available for those facilities with extremely limited production space. Much of the semi-automatic equipment can usually be upgraded to automatic machinery as well, which allows the pacakging machinery to grow with the company as demand for a product increases. For larger companies, fully integrated, fully automatic packaging lines can be acquired to handle much larger production demands than the start up companies will usually see.

These systems can be fine tund to handle the specific products and packages being used to maximize efficiency and reliability versus general packaging machinery that may be used on several different projects for several different customers by contract packagers. In addition, automatic packaging systems will not necessarily require additional labor, as will usually be needed for manual or semi-automatic machinery.

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