Contract packagers and contract manufacturers today have more than enough to worry about. To deliver on customer demands and provide high-quality customer service in a disruptive market, they need to be lean, nimble, and efficient.
The truth, however, is that many co-pack operations aren’t optimally equipped to meet these demands. Their existing planet floor setups are supplemented by cumbersome spreadsheets or legacy ERP systems—which don’t provide detailed visibility into inventory movement and consumption—and cannot support the complex workflows inherent in all contract packaging operations.
When staff in a co-packing operation are second-guessing what’s happening on their production floors due to lack of real-time information, how can their customers have confidence in their operations? This level of risk can jeopardize long-term business viability.
Here are three ways purpose-built software for co-pack service providers can solve visibility, reliability, and efficiency issues to ensure long-term business success:
1. Raise the bar for operational workflows
Today’s supply chain challenges demand evolved solutions. In a world where change can happen suddenly, at any scale and at any time, antiquated software will stifle growth and speed. Spreadsheets take too much time and effort to maintain, and create slow response times co-packers just can’t afford.
Likewise, ERP systems have their place in a contract packaging operation, but are inadequate as a means to manage and track production lines and output. Optimized production efficiency requires a system that provides real-time information into what is happening on the shop floor. ERP systems were not designed for this purpose.
What’s required is a purpose-built, software system for production processes—the right solution for the right job—that provides the robust capabilities and real-time visibility to support and effectively scale with your business.
“CPCMs are investing more to evolve their sophistication in technology. They are now using technology as a sword instead of a shield.”
-Carl Melville, Author of the CPA State of the Industry Report
2. Gain visibility and control over operations
One of the biggest strengths of a purpose-built, digital end-to-end solution is the ability to provide real-time visibility across the entire shop floor, from receiving and multi-stage manufacturing processes, to packaging and shipping. Here are just a few ways the right solution can benefit a contract supplier’s bottom line:
- Visualize and optimize production schedules based on current demand, downtimes, run rates, and more
- Digitalize production execution processes on the shop floor to help bolster through-put, reduce costs and unveil valuable insights
- Track and report KPIs for long-term business success.
- Build business resilience
Disruptions can come at any time, at any level and in any form. Contract packagers and manufacturers continually weather these disruptions big and small, and understand the business risk of being caught flat-footed.
Disruptions are inevitable, whether it be to brand customers or to the global supply chain. For safety, insurance, and establishing a reputation as trustworthy and reliable, it’s crucial for contract packagers and manufacturers to begin safeguarding their operations today.
Software—namely, a purpose-built solution for contract packaging providers—can build the agility and resilience needed to protect against unprecedented disruption.
3. Control Costs
Running the day-to-day operations of a co-pack business is already a job and half. It’s a daunting challenge to keep operating costs low while delivering the same high standards of service that brand customers are seeking.
Purpose-built contract packaging software makes it easy for your business to maintain an accurate view of labor costs, costs of materials, production efficiency, and more. From inventory through production, you can gain control over:
- Inventory – Use historical data to analyze pricing for the inventory you need, maximizing your spend.
- Production – Keep track of efficiency metrics such as scrap rate.
- Labor – Identify high performing lines and use historical production data for continuous improvement.
You’ll have the real-time data you need to ensure that your dollars count the most where they’re needed.
The time to upgrade is now
Is your business ready to take on new revenue opportunities and keep customers happy? Now is the best time to ensure that your services and business can withstand the uncertainties of the future.
Contact us or request a demo today to see how Nulogy’s software can help your contract packaging or contract manufacturing business thrive.
