It’s no secret that contract packagers and contract manufacturers are vital to the external supply chains of consumer packaged goods (CPG) companies, helping them fill the shelves of retail channels on time and in full. However, managing a co-packing or contract manufacturing operation is no easy task: in addition to planning and scheduling challenges associated with a continually evolving market landscape, contract suppliers are increasingly taking on greater strategic responsibilities from their brand customers, all while fulfilling the expectation of high customer service and fulfillment rates.
Below, we’ll explore the top five pain points facing external manufacturing partners today—and how digital, purpose-built solutions can address these challenges to enhance productivity, reduce costs, and improve customer satisfaction.
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 limited data visibility into their inventory and production workflows. This lack of transparency can result in stockouts, delayed production schedules, and ultimately, a breakdown in fulfilling customer demand on time. Without real-time insight into inventory statuses or production progress, even the best-prepared plans can fall short when unexpected disruptions occur.
The Solution:
With the aid of a solution that’s purpose built for their needs, external manufacturers can access near-real time updates on inventory levels and production statuses, and address potential bottlenecks. This level of visibility helps co-packers and contract manufacturers meet demand consistently, which strengthens relationships with CPG 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. Over-reliance on Manual Processes and Tracking
The Pain Point:
Despite the growing shift toward digitization in the manufacturing industry, many external manufacturers still rely heavily on manual processes—including paper-based tracking, emails, and spreadsheets—to manage production operations. This approach leads to greater inefficiencies, increased likelihood of human error, and slower response times, all of which can impede overall productivity and the ability to scale effectively.
The Solution:
Fully digitizing production processes not only improves accuracy but also makes workflows more efficient and flexible. When staff on the line take advantage of digital tools to record production updates, data becomes easily accessible throughout the business, and updates occur in near real time. This allows all team members to stay informed, eliminate redundant tasks and minimize human error. Additionally, with digital dashboards and reports, decision-makers gain quick insight into critical metrics and can make data-driven decisions faster than ever before. Finally, automating manual tasks frees up staff for more strategic roles, enabling co-packers and contract-manufacturers to operate more competitively in a digital-first 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:
External manufacturers are often challenged with continually managing labor schedules and production in the face of rapidly changing customer demand. When done manually, labor management and production scheduling can be slow to adapt and are prone to errors, overstaffing, underutilization, or even bottlenecks that slow down output. These inefficiencies not only increase labor costs but can also lead to missed deadlines or lost business opportunities.
The Solution:
A digital production scheduling solution, which leverages historical data and predictive analytics, can offer a streamlined approach to optimizing scheduling. By using software to handle the planning and scheduling of current and future orders, as well as the inventory needed to fulfill these orders, co-packers and contract manufacturers can more effectively maximize their available capacity and reduce the chance of 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, with rapid changes in demand, last-minute customer orders, or rush requests becoming the norm rather than the exception. For external manufacturers working with inflexible, legacy systems, adjusting to these changes can be slow and challenging, leading to delays in production and potential losses in customer satisfaction.
The Solution:
Real-time data and agile software systems empower external manufacturers to be responsive to market changes. With live insights into current operations and data-driven demand forecasts, companies can shift production priorities or pivot resources with agility. For example, by accessing data on machine availability and raw material stock, manufacturers can decide quickly to switch to a priority production run without disrupting other commitments. The ability to adapt operations in real-time ensures that co-packers and co-manufacturers can respond swiftly to unexpected demand shifts, making them valuable partners to fast-paced CPG companies looking to maintain an edge in competitive markets.
“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 external manufacturers and CPG brands hinge on clear communication and alignment. Unfortunately, miscommunication and poor visibility often hamper collaboration, causing misalignments in production goals and delays in meeting customer requirements. Without a collaborative digital platform, co-packers may struggle to keep pace with evolving customer needs, jeopardizing client relationships and future business.
The Solution:
Implementing digital platforms that foster seamless collaboration with customers is key to improving alignment. A centralized platform can enable co-packers to share real-time data, production updates, and quality metrics directly with CPG customers, ensuring both parties stay informed and aligned on priorities. With centralized data-sharing capabilities, external manufacturers can communicate upcoming delays or potential issues ahead of time, allowing their clients to adjust expectations and plans accordingly. 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
External manufacturers such as co-packers and contract manufacturers face numerous challenges every day that can impact their ability to compete and grow. These top five pain points—limited visibility, reliance on manual processes, inefficient scheduling, rigidity in adapting to market changes, and lack of customer collaboration—highlight the critical need for digitization in today’s manufacturing landscape.
By adopting digital tools and platforms, these contract suppliers can not only overcome these challenges but also position themselves as reliable, responsive, and strategic partners to CPG brands. Embracing digital transformation isn’t merely a choice for external manufacturers; it’s a competitive imperative that ensures they remain agile, adaptable, and aligned in a fast-paced, customer-centric marketplace.Ready to learn how a purpose-built platform such as Nulogy can drive efficiency and profitability in your co-packing or contract manufacturing business? Get in touch with us today.
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