The Complete Guide to Co-Pack Software
The Complete Guide to Co-Pack Software
Introduction
Read on to learn all about how the right co-pack software can help contract packagers better serve customers and thrive in the market.
Table of Contents
- What is contract packaging?
- What services do contract packagers offer?
- What challenges do co-packers face every day?
- What is manual data entry in co-packing?
- What types of co-packing data are manually entered?
- What are the risks of manual data entry in co-packing?
- What are the alternatives to manual data entry in co-packing?
- How do co-packers benefit from adopting software?
- What is a manufacturing operating system (MOS)?
- What are the first steps to onboarding a new co-pack software system?
What is contract packaging?
Contract packaging, often referred to as co-packing or contract packing, involves outsourcing the packaging process to a third-party provider. By leveraging these partnerships, companies such as FMCG brands can focus on product development, innovation, and marketing, while leaving the specialty of packaging to specialized experts.
Read more about contract packaging as an industry.
What services do contract packagers offer?
Contract packagers can handle various tasks, including filling, labeling, and assembling products, tailored to the specific needs of their clients. By working together with these experts, businesses can not only enhance their operational efficiency but also tap into innovative packaging solutions that may not be feasible in-house.
Learn more about the roles and services offered by contract packagers.
What challenges do co-packers face every day?
Co-packers operate in highly dynamic environments where variability is the norm. As a result, one of their biggest daily challenges is managing ever-changing demands from multiple brand customers, each with unique requirements, timelines, and compliance standards. This challenge often leads to complex production scheduling, frequent line changeovers, and tight turnaround times.
At the same time, many co-packers still rely on manual processes or disconnected systems, making it difficult to maintain real-time visibility into operations, labor utilization, and inventory. The result is increased risk of errors, delays, and missed deadlines—especially when handling high-mix, low-volume production runs.
Another long-term challenge is maintaining quality and compliance while operating at speed. Co-packers must adhere to strict customer specifications and regulatory guidelines (such as traceability in food and beverage), all while ensuring accurate documentation and audit readiness.
Further, labor constraints in the market add another layer of difficulty, as onboarding and training temporary or seasonal workers can impact productivity. As well, limited integration with customers’ systems creates communication gaps, leading to delays in approvals, changes, or data sharing. Altogether, these pressures make it difficult for co-packers to scale efficiently, protect margins, and consistently deliver high service levels.
What is manual data entry in co-packing?
Manual data entry in contract packaging refers to the process of production workers physically recording inventory, quality, or operational data. These kinds of workflows typically involve filling out paper forms, whiteboards, and/or manually typing into spreadsheets or systems. Because of the amount of time and effort needed to complete these tasks, they are often done after a shift or order run is completed, introducing the possibility of lagging data and manual entry errors.
And, while manual data entry is common in manufacturing environments, these processes are often slow, error-prone, and limit the flow of manufacturing data across departments or between customers and partners. Further, they take up valuable time in each employee’s day.
What types of co-packing data are manually entered?
Data is entered manually in every stage of the co-pack production lifecycle: from inventory and production, to labor management, maintenance, and quality/compliance records. These inputs are typically captured on paper or spreadsheets and later transferred into systems, which, as mentioned above, can cause delays, errors, and gaps in data visibility.
Examples of data types across each manufacturing function include:
Inventory & Materials
Co-pack environments track data related raw materials, components, and finished goods, such as:
- Material usage and consumption
- Lot and batch numbers
- Stock counts (cycle counts, physical inventory)
- Receiving and shipping logs
Labor & Workforce Data
Co-packers commonly track data related to workforce allocation and productivity, including:
- Employee hours and attendance
- Job assignments and task tracking
- Productivity per worker or line
- Overtime and shift logs
Production Data
On the plant floor, co-packers need to track what is being made and how much. Examples include:
- Units produced per shift/hour
- Scrap and rework quantities
- Work order completion status
- Line speed or throughput
Machine & Equipment Data
Co-packers using packaging machinery must monitor equipment performance and utilization using data such as:
- Downtime events and reasons
- Machine start/stop times
- Maintenance logs
- Equipment performance checks
Quality Data
Critically, co-packers must ensure that their products meet specifications and regulatory standards using:
- Inspection results (pass/fail)
- Defect types and counts
- Temperature, weight, or measurement checks
- Audit and compliance checklists
Maintenance Data
Co-packers must monitor equipment reliability and asset management to effectively prevent downtime:
- Preventive maintenance checklists
- Repair history and notes
- Spare parts usage
- Inspection records
Quality & Compliance Data
For regulated industries such as food, pharma, and CPG, co-packers must meet specific production and quality standards:
- Batch/lot traceability records
- Supplier and ingredient tracking
- Cleaning and sanitation logs
- Regulatory documentation (e.g., food safety records)
Shipping & Logistics Data
Upon receiving and shipping orders, co-packers must track outbound and inbound movement of goods:
- Shipment quantities and documentation
- Bill of lading details
- Delivery confirmations
- Pallet and case counts
What are the risks of manual data entry in co-packing?
Manual data entry in co-packing introduces significant operational, financial, and compliance risks due to human error, delayed visibility, and fragmented data. These risks can lead to poor decision-making, quality issues, regulatory risks, and reputational damage.
For example, human errors such as missed entries, incorrect values, or inconsistent formats can compromise everything from inventory accuracy to production reporting. Because this data is often recorded after the fact, it creates delays in data visibility, preventing teams from identifying and addressing issues such as downtime, defects, or supply shortages in real time. The consequences are slower decision-making, lower productivity, and higher operating costs.
Further, these challenges are compounded in regulated environments, where incomplete or inaccurate records weaken traceability and increase the risk of non-compliance, audit failures, and costly recalls. At the same time, manually captured data tends to exist in silos—such as paper logs or disconnected spreadsheets—hindering scalability for growing businesses. These risks create “blind spots” across the manufacturing plant, making it difficult for businesses to maintain visibility, ensure quality, and respond effectively to disruptions.
As a result, this “digital disconnect” is one of the biggest challenges facing co-packers, who may not even be aware of the damage being done to their businesses. Relying on spreadsheets, manual uploads, and other time-consuming workarounds means that the data in every part of a co-pack business is siloed and disconnected.
Read more in our blog post on the Digital Disconnect.
What are the alternatives to manual data entry in co-packing?
Digital systems are the main alternative to manual data entry in contract packaging environments. Examples of commonly used software solutions include warehouse management systems (WMS), manufacturing execution systems (MES), quality management systems (QMS), enterprise resource planning systems (ERPs), and Manufacturing Operating Systems (MOS). These solutions are generally implemented to reduce human error and improve visibility and productivity.
However, these software systems are commonly limited to a specific function or area within a manufacturer’s operations. Co-packers usually adopt multiple systems to cover their entire business, which means they must manage multiple vendors and software types, adding costs and time to their operating budget.
Unlike other software systems, Manufacturing Operating Systems stand apart due to their ability to connect data across departments and functions, such as connecting quality and maintenance data to production data. By connecting these data “silos”, co-packers can gain a more complete picture of their operations, and can make business decisions more effectively.
Learn more about choosing the right software for your co-pack operation.
How do co-packers benefit from adopting software?
Co-packers have much to gain from phasing out manual processes in favor of a complete software system.
Adopting a Manufacturing Operating System (MOS) offers significant advantages over manual processes such as spreadsheets and paper forms. First, a MOS centralizes data and standardizes workflows, providing a single source of truth across production, quality, and inventory. Unlike spreadsheets, which are prone to data entry errors and inconsistencies, a MOS ensures data accuracy and real-time production monitoring and reporting, enabling faster and more informed decision-making.
Second, a MOS automates repetitive tasks and standardizes workflow processes, reducing manual entry, human error, and delays due to lagging data. Features like production scheduling, quality management, and inventory tracking streamline operations and free staff to focus on higher-value activities, improving overall efficiency across the manufacturing plant.
Finally, a MOS supports scalability and continuous improvement. The system provides analytics and dashboards to identify bottlenecks, measure performance, and track KPIs over time—capabilities that are difficult to achieve with spreadsheets. This visibility not only improves responsiveness but also strengthens compliance, collaboration, and long-term productivity.
Learn more about how a MOS can solve challenges faced by co-packers.
What is a manufacturing operating system (MOS)?
The Manufacturing Operating System (MOS) is a software platform that is specifically built to solve the digital disconnect facing co-packers and enhance workforce capabilities. Unlike other software systems such as ERP, MES, or WMS, the MOS is a single system that builds off a manufacturer’s existing solutions to support smarter and more efficient manufacturing, co-packing, and distribution.
With the support of a MOS, co-packers can connect their data for smarter business decisions, respond faster to the market, and make life easier for the people who plan, produce, and deliver.
Learn more about the capabilities and functions offered by a Manufacturing Operating System.
What are the first steps to onboarding a new co-pack software system?
Onboarding a new software system in a co-pack business begins with defining objectives and success metrics. During the planning process, co-packers should identify the problems the MOS will solve—such as reducing manual data entry, improving quality processes, or optimizing scheduling—and set realistic, measurable KPIs to track performance. Establishing these goals upfront ensures the implementation stays focused and aligned with business priorities.
Next, it’s critical to prepare people and processes for the system change. This step involves assembling a cross-functional team from operations, quality, IT, and production, auditing existing workflows, and vetting data to ensure accuracy. This way, the solutions within the MOS can meet operational needs and integrate with existing systems.
Finally, training and continuous improvement drive adoption and value. Staff should receive role-based training and access to educational resources and support teams, while regular reviews of KPIs and operational feedback allow adoption of the MOS to be refined over time. By approaching onboarding systematically—aligning goals, preparing data and processes, and empowering users—co-packers can reduce disruption and maximize the benefits of their new system.
Read more about how the right support team can ensure smooth implementation and onboarding.
Why choose Nulogy for your co-pack environment?
For more than 20 years, Nulogy’s software has accelerated growth, efficiency, and output for hundreds of contract packaging sites around the world. From growing businesses to established, multi-site operations, Nulogy is the definitive software platform for managing co-pack operations.
We understand the complexity of your business, and the challenges you face every day. Our support and implementation teams are friendly, knowledgeable, and supportive.
Unlock the Power of Production Scheduling With AI
Watch a focused deep dive into Nulogy’s co-pack and shop floor software, including the role of Nulogy’s AI tool. Unlock the full potential of our Production Scheduling module in this recorded session.