Purchasing Equipment vs. Using a CoPacker: How to Decide or When is it Time to Use a CoPacker?

In the world of manufacturing, packaging plays a vital role in ensuring products are protected and arrive to the customer in the most efficient and appealing manner. When it comes to packaging, businesses are faced with a critical decision: should they invest in purchasing their own equipment or should they outsource this process to a co-packer? Both options have their pros and cons, and choosing the right path can greatly impact a company’s success and bottom line.

Here, we discuss outsourced vs. in-house packaging services, including using a co-packer over your house team, when to consider using a co-packer, and how Wayne Automation can support companies whether or not they choose to outsource.

What Is a Co-Packer and What Are the Benefits?

So, what exactly is a co-packer? A co-packer, short for contract packer or contract manufacturer, is a third-party provider that specializes in providing packaging services to other businesses. These co-packers have the necessary equipment, facilities, and expertise to handle the packaging process efficiently and effectively for different industries and products. Here are some of the benefits of hiring a co-packer:

Cost Control

Investing in packaging equipment can be a significant investment for many businesses, especially startups or small- and medium-sized enterprises. By using a co-packer, companies can avoid the upfront costs associated with purchasing, maintaining, and repairing the necessary packaging equipment. The co-packer assumes these costs and spreads them across multiple customers, resulting in potential cost savings for each business.

A Competitive Advantage

As businesses grow, the demand for their products can increase rapidly, putting pressure on their packaging capabilities. Investing in the packaging equipment to handle these fluctuations requires an initial investment and integration process complete with specialized training to ensure your team can work the equipment.

However, by working with a co-packer, businesses can easily scale their packaging operations up or down according to demand without having to make substantial investments in equipment and ongoing training. This flexibility allows companies to focus on their core competencies and better allocate resources.

Industry Expertise

Co-packers are well-versed in the equipment they use and have direct control over the process, meaning they can offer high quality of service right off the bat. There’s no need to acclimate your house employees to the new equipment or go through the necessary training to understand how to use the machine. You can scale immediately to meet current demands, leveraging the expertise co-packers offer.

Choosing Between Purchasing Equipment and an Outsourced Team

Whether or not outsourced vs. in-house packaging aligns with your business requirements will depend on the service provider, project requirements, and your internal resources. Choosing between purchasing equipment and using a co-packer is an important decision whether you’re in the healthcare industry or the automotive industry.

Business owners need to consider factors such as their production volume, growth potential, capital availability, and internal staff expertise. Additionally, conducting a cost-benefit analysis and comparing the financial implications of both options can help companies make informed decisions.

For co-packers, Wayne Automation offers high-speed, reliable, and efficient equipment that can handle a wide variety of products. From case and tray packers to case erectors and partition inserters, our machines are designed to improve productivity, reduce labor costs, and ensure package integrity. These benefits empower co-packers to offer competitive pricing and services to their customers while maintaining high-quality standards.

On the other hand, companies that opt for in-house manufacturing can benefit from Wayne Automation’s specialized expertise in end-of-line packaging equipment. By investing in our industry-leading packaging solutions, businesses can streamline their packaging process, improve production efficiency, reduce errors, and ensure consistency in packaging quality. This can result in significant cost savings and enhanced customer satisfaction.

There isn’t a one-size-fits-all approach when you’re trying to decide between outsourced vs. in-house packaging services. While co-packers can offer cost-effective solutions when you have a limited budget and need to scale quickly, some companies prefer to have a dedicated house team and internal equipment to get the job done.

Whether you’re a co-packer or a company manufacturing in-house, Wayne Automation’s end-of-line packaging equipment provides a reliable and efficient solution to meet your packaging demands and support your business growth.

Learn More About In-House Production vs. Outsourcing With Wayne Automation

There’s a lot to consider when you’re thinking about outsourcing to a co-packer. While they offer better operational efficiency and cost control, you might want complete control over the process by purchasing your own equipment and using an internal team.

Wayne Automation supports both co-packers and in-house processes with unmatched end-of-line packaging equipment. With a range of innovative and customizable solutions, we help businesses optimize their packaging operations so they can focus on their core business functions. Contact us to discuss your packaging needs today!