Contract packaging service providers today have more than enough to worry about. To deliver on customer demands and provide high-quality customer service in a disruptive, ever-changing industry, they need to be lean, nimble, and efficient in their operations.
The truth, however, is that many co-packers and value-added co-pack operations aren’t equipped to optimally meet these demands. Their existing shop floor setups are enabled by cumbersome spreadsheets or legacy ERP systems—which don’t provide detailed visibility into inventory movement and consumption—and cannot support the complex workflows found in a contract packaging operation.
When staff in a co-packing operation are second-guessing what’s happening on their shop 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 a purpose-built software solution for co-pack service providers can solve visibility, reliability, and efficiency issues to ensure long-term business success:
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 solutions will stifle growth and speed. Spreadsheets take too much time and effort to maintain, creating costly response lag a contract supplier can’t afford.
Likewise, ERP systems have their place in a contract supplier 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, digital solution 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
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, digitally-enabled solution for contract packaging providers—can build the agility and resilience needed to protect against unprecedented disruption.
The time to upgrade is now
As the economy rebounds from the market conditions of the past 18 months, consumer brands and their supply chain partners expect to capitalize on the surge in consumer spending. Is your business ready to take advantage of these new opportunities?
Now is the best time to ensure that your services and business can withstand the uncertainties of the future.
Visit our contract packaging and manufacturing page to learn more about how Nulogy’s platform can keep you profitable and successful.
