In order for small companies or startups to work efficiently and effectively, they need to focus on their core business. Some businesses feel that small companies should complete all sides of the business internally in order to save money, but outsourcing tasks that are not directly related to the core business may actually be more cost efficient.
For companies in the consumer goods industry, there are so many processes that need to be completed before the product goes to market. Areas such as design, manufacturing, marketing, or sales which are core areas of the business may be most efficiently completed internally.
With the focus on these key areas, it can be easy to put less effort into smaller areas. Packaging is one of these areas that can get pushed to the side. Outsourcing packaging is a great option to maintain focus on the areas of your core business, especially for small to medium sized businesses.
The following are the top 5 reasons why outsourcing packaging could greatly benefit your company.
1. Focus on key areas
Small businesses always have a million tasks on the go as each employee contributes to every area. By outsourcing to a reliable packaging company, all employees can focus on business development and day to day tasks. Building boxes and completing packaging is easy but time-consuming. If all of the workday is spent on placing products into boxes, there will be no time to focus on the key areas of your business.
2. Customize all products
Professional packaging companies have a wide variety of options for products of all shapes and sizes. By outsourcing the packaging, you are removing the need to source, purchase, and ship a different type of packaging for every product. The packaging company will be able to customize the packaging for every product efficiently and cost-effectively. Packaging is an important part of your product and you want to ensure that each product is represented creatively and in good form. The customization of each product by a packaging company can help enhance the look and value of your product.
3. Reduce costs
By investing in a packaging company that you trust, you can greatly reduce the marginal cost of each product. With high product numbers, the professional packaging company can provide pricing options for different types of customized packaging. To even further reduce costs, consider choosing a packaging company that also offers shipping services. This type of outsourcing can greatly reduce costs by increasing efficiency and bundle prices.
4. Lower overhead expenses
Outsourcing packaging, and shipping if possible can greatly lower your overhead expenses. By outsourcing these areas of business, you can reduce the amount of space required in your office, remove the expense of the technology required to package, store and ship, and the associated labor cost of packaging. When investing in packaging and shipping internally, you will have to pay the associated costs regardless of the number of products you package.
In most cases with an outsourced packaging company, you will only pay for what you use. With the decision to outsource packaging, you can reduce both product cost and overhead expenses.
5. Increase efficiency
Each business has their area of specialty where they are efficient, fast, and reliable. For packaging companies, the packaging is their area of specialty. They can make the packaging part of your business better by covering the logistics, inventory, and the packaging itself. By focusing on your specialty, and outsourcing areas that can be done by experts, you are increasing the chances of a successful product.