It’s no secret that contract packagers and contract manufacturers are vital to the growth and success of consumer packaged goods (CPG) companies. Indeed, co-packers help fill the shelves of retail channels on time and in full.
However, managing a co-packing or contract manufacturing business is no easy task. They must constantly juggle planning and scheduling changes in response to an ever evolving market landscape. In addition, contract suppliers are increasingly taking on greater responsibilities from their brand customers. Lastly, co-packers must meet these demands all while maintaining excellent customer service and fulfillment rates.
Below, we’ll explore the top five pain points facing co-packers and co-manufacturers today—and how purpose-built software can address these challenges to reduce costs, boost output, and improve customer service.
1. Limited Visibility into Inventory and Production
The Pain Point:
Co-packers and co-manufacturers that rely on legacy systems or paper-based workflows often struggle with a lack of inventory and production data. As a result, this can result in stockouts, delayed production schedules, and ultimately, failure to fulfill orders on time. Without real-time insight into inventory statuses or production progress, even the best-prepared plans can fall short in the face of unpredictable delays.
The Solution:
With the aid of software that’s purpose built for their needs, co-packers and co-manufacturers gain real-time updates on inventory and production statuses. Consequently, this level of visibility helps co-packers and contract manufacturers meet demand consistently, improving relationships with customers.
“When we implemented Nulogy, our pallet location and inventory accuracy became significantly better. We didn’t need to spend hours trying to find certain pieces of material to bring to the line.”
-Ryan McWethy, Plant Manager
MSI Express
2. Time-Consuming Manual Processes and Tracking
The Pain Point:
Many external manufacturers still rely heavily on manual processes (including paper-based tracking, emails, and spreadsheets) to manage the plant floor. As a result, they introduce greater inefficiencies, increased likelihood of human error, and slower response times, all of which can stifle productivity and growth.
The Solution:
Managing production with co-pack software not only improves accuracy but also makes workflows more efficient and flexible. Furthermore, when staff on the line use software to track production, the business can better use the data to respond to issues and adapt. As a result, all team members can stay informed, eliminate repetitive tasks and minimize human error. Moreover, with digital dashboards and reports, decision-makers gain quick insight into critical metrics and can make smarter decisions faster. Finally, automating manual tasks frees up staff to deliver better work, and keep the company competitive in a crowded market.
“In the past there was a lot of paper-based work involved in finding information. Now with Nulogy, we can pull that information quickly in a matter of minutes as opposed to hours.”
-Jared Whalen, Director of Quality
Summit Packaging Solutions
3. Inefficient Production Scheduling and Labor Tracking
The Pain Point:
Co-packers are often challenged with continually managing labor schedules and production in response to customer demands. As a result, manually updated labor management and production scheduling are prone to errors, overstaffing, or even bottlenecks that slow down output. Subsequently, these inefficiencies not only increase labor costs but can also lead to missed deadlines or lost business opportunities.
The Solution:
Production scheduling software which leverages historical data and predictive analytics can make planning and scheduling far easier. By using software to handle the planning and scheduling of current and future orders, co-packers can make the most of their available capacity and reduce order delays due to inventory shortages.
“In the co-packing business, timing and accuracy are critical to success. Nulogy’s Production Scheduling has saved us valuable time while ensuring data accuracy in our work orders.”
-Chuck Carrington, President & Co-Owner
MattPak
4. Inability to Adapt Quickly to Market Changes
The Pain Point:
Today’s market is increasingly volatile, last-minute customer orders or rush requests becoming the norm. As a result, for external manufacturers using inflexible, legacy systems, adjusting to these changes can lead to delays in production and blows to customer satisfaction.
The Solution:
Contract packaging software empowers co-packers to respond faster to market changes. Indeed, with live insights into current operations and data-driven demand forecasts, companies can shift respond faster and more efficiently. For example, by accessing data on machine availability and raw material stock, manufacturers can quickly to switch to a priority production run with minimal disruption. Furthermore, the ability to adapt in real-time ensures that co-packers and co-manufacturers can respond swiftly to unexpected demand shifts, making them valuable partners to CPG customers.
“We needed to implement a new production floor platform in a matter of days, not weeks. Nulogy was nimble, efficient and collaborative in a way that partnered with us to meet our needs.”
-Geoffrey Crawley, Vice President
Staffing Synergies
5. Lack of Collaboration with Customers
The Pain Point:
Successful partnerships between co-packers and CPG brands hinge on clear communication. However, miscommunication and poor visibility often cause misalignments in production goals and delays. Without collaborative software, co-packers may struggle to keep pace with evolving customer needs, jeopardizing client relationships and future business.
The Solution:
It is critical for co-packers to adopt software that fosters seamless collaboration with customers. Accordingly, a centralized software platform can enable co-packers to share real-time data, production updates, and quality metrics directly with CPG customers. Subsequently, this ensuring both parties stay informed and aligned on priorities. In addition, external manufacturers can communicate upcoming delays or potential issues ahead of time, allowing their clients to adjust expectations accordingly. Thus, this level of transparency fosters trust and collaboration, reducing misunderstandings and ensuring both manufacturers and brands can meet consumer demands consistently.
“Through Nulogy, enabling greater materials data visibility and consolidation between ourselves and our major customer has simplified complex materials management processes, which together lets us get on the same page faster.”
-Nick Pai, Master Planner
Crescent Park Corporation
Discover the Power of Purpose-Built Today
Co-packers and contract manufacturers face challenges every day that can impact their ability to compete and grow. Therefore, these top five pain points highlight the critical need for purpose-built software in today’s manufacturing landscape.
By adopting digital tools, these contract suppliers can not only overcome these challenges but also position themselves as reliable, responsive, and strategic partners to CPG brands. As a result, embracing digital transformation isn’t merely a choice for external manufacturers: it’s a competitive edge that ensures they remain agile and successful in a fast-paced marketplace.
Ready to learn how Nulogy’s purpose-built software can reduce costs and improve throughput in your co-packing or contract manufacturing business? Get in touch with us or request a demo today.
