What is Contract Packing and How Does It Work: Complete Guide
Are you a brand looking for contract packing support? Many brands choose to outsource their co-packing so that in-house teams can focus on other core business activities. In this blog, we’re answering the question, what is contract packing and how does it work.
What is contract packing?
Contract packing (also known as co-packing) is the outsourcing of packaging, assembly, kitting, or product preparation to a third-party specialist. These providers may be dedicated contract packers, 3PLs or logistics companies offering integrated packing and fulfilment services.
A high-quality contract packing provider may offer services such as product manufacturing, sourcing, filling and assembly, labelling, kitting, quality control, batch control, fulfilment and distribution. Some providers also offer packaging design and print services, either in-house or through trusted partners.
Contract packing allows brands to scale efficiently while maintaining quality and compliance.
At Granby, we provide end-to-end contract packing services so that you can build trusted relationships with customers. We support brands at local, national, and international levels.
Contract packing vs fulfilment
While contract packing focuses on preparing products for sale, such as kitting, labelling, or gift packing, it is often combined with fulfilment services. This integrated approach allows products to move seamlessly from packing to storage and distribution.
Co-packing support
Contract packing can include a variety of activities, from gift and seasonal packing to tamper-proofing and providing expert packaging advice.
Granby supports brands with all elements of packaging aesthetics and design. We’re here to help brands achieve maximum value from packaging design. As your trusted contract packing partner, we ensure your products look great and are protected during transportation.
By optimising your packaging solutions with our support, you can save time and money, protect the planet, reduce the risk of damaged items and lower your product return rate.
Where possible, we minimise environmental impact by avoiding single-use plastics in our warehouses and using FSC-certified cardboard. We also work with brands to explore more sustainable packaging options suited to their products. Find out more about our sustainability initiatives.
How does contract packing work?
If you want to learn more about the contract packaging process, then you’re in the right place.
Consultation & planning
The first stage of contract packing involves a thorough consultation. We meet with all brands to discuss their product requirements, volumes and goals. Granby prides itself on its ability to scale easily in response to client demand.
Warehousing & packaging materials
During the planning process, we will discuss warehousing and distribution, storage needs, packaging requirements and much more.
Packing
Our expert team takes care of every aspect of packing, from filling boxes and kitting to labelling and tamper-proofing. We work with brands on everyday items and gift packing as well as seasonal products, including Advent calendars, Easter items, Halloween kits and other promotional packs.
Quality control
Once items have been packaged correctly, our team will complete rigorous quality control measures. Our quality control processes are supported by recognised certifications, enabling us to meet strict safety and operational standards.
Every item that enters our warehouse is assigned a unique code that can be used to track it from arrival through to distribution. This enables us to trace the product for recalls or other concerns if necessary. By partnering with a trusted contract packer like Granby, you can reduce the risk of recalls, increase efficiency, and enhance flexibility.
Batch control
Batch control is a significant element of contract packing. It requires full traceability of components and finished goods by batch, driven by EU Regulation EC No 1223/2009, which demands that products be traceable back to:
- Production date
- Raw materials used
- Subcontractor
- Customer receiving the goods
At Granby, we follow a rigorous process for batch control, which involves receiving and recording stock by batch upon receipt and ensuring batch segregated storage or a batch-trackable inventory.
We utilise unique batch codes in rework and production, generating new codes for LOT activities and ensuring that all batch rules are adhered to. Following these steps enables us to trace items throughout the entire supply chain, from arrival through to distribution.
Every item in our warehouse is stored, collated and assembled to meet batch-level traceability requirements, which also allows us to adhere to ‘first-in-first-out’ and ‘first-in-first-expired’ methods of inventory management.
When labelling products, we utilise LOT labels, which ensure fast recalls and help teams manage expiry dates with ease. We also formulate batch plans that detail the entire manufacturing process for a product, ensuring the correct steps are followed and quality checks are carried out. Lastly, we complete compliance checks using audit files to ensure suitable testing has been completed.
Following these steps ensures recall readiness, as products are closely monitored alongside the rest of the batches. Close tracking enables us to accurately trace, isolate and withdraw specific batches from the supply chain, reducing the risk of further issues.
To comply with the EU Cosmetics Regulation, we ensure that all batch traceability records are retained for a minimum of 3 years after the last batch is placed on the market. Not only does this enable swift action on recalls, but it also helps us support our clients’ regulatory obligations.
Fulfilment
In addition to quality checks, we handle all aspects of fulfilment, including storage, management, and distribution of items. We work alongside sustainable partners who optimise routes and follow other efficiency measures.
We recognise that no two brands are the same. As a result, we work closely with each brand to address different challenges and develop a solution that works best for them.
Distribution
Granby has the capacity to support brands with both short-and long-term storage options. We utilise our advanced in-house-built software, SCOPe, to generate consignment instructions, considering item weight and the best despatch methods, while tracking stock and ensuring traceability.
We work with high-quality distribution partners to ensure safety and efficiency for every delivery. Our delivery partners optimise routes to ensure sustainability in practice.
Reverse logistics
Poor returns can cost brands a lot of money, resulting in poor customer service and inaccurate tracking. By working alongside a contract packing partner for reverse logistics, you can better protect cash flow, increase customer satisfaction and ensure streamlined returns.
We have supported brands with high volume returns in the UK and internationally. Our expertise, combined with our advanced technology, means that we can ensure robust, trusted processes.
We carefully assess returns, allowing them to be repackaged, resold or disposed of responsibly. As with other processes at Granby, sustainability is at the heart of our returns logistics through digital reporting and adherence to reduce, reuse, and recycle strategies.
Is contract packing right for your brand?
Contract packing may be particularly beneficial for brands experiencing rapid growth, seasonal demand, or limited in-house space.
It can also suit brands looking to improve efficiency, reduce operational overheads, or access specialist expertise without significant upfront investment.
Why should brands outsource their packing?
There are so many reasons why a brand might consider outsourcing its packing processes. Here are some of the most common reasons.
Seasonal demand peaks
It’s common for brands to experience demand peaks from time to time. Sometimes, these peaks correlate with the seasons, but at other times, they may be due to viral trends or other factors.
Whatever the reason, brands need to ensure that they are prepared to handle short-term, high-volume demands. Granby has an excellent in-house team that is supported by trusted bank staff during seasonal demand peaks. As a result, we are confident that we can scale with brands as a reliable contract packing partner.
Faster time to market with a contract packaging company
Contract packing providers will have a broader understanding of processes and regulations, which can lead to faster time-to-market for products. Being able to scale effectively with brands enables them to speed up turnaround times and ensure that every brand’s inventory is running smoothly.
For regulated sectors such as food, cosmetics, and healthcare, contract packing providers can also support compliance with relevant safety and labelling requirements.
Our production team ensures accuracy and attention to detail when hand-packing items, including gift sets, product samples, and more. The right contract packer will ensure accuracy and transparency in stock management.
Cost savings
Storing, managing and organising product packaging not only takes time, but it can also be costly. In addition to paying team members to cover these tasks, you’ll also need to pay for storage and other elements, such as potential security.
By partnering with Granby, you don’t need to worry about any of these aspects. Our 77,000-square-foot warehouse has BRCGS status and is covered by a range of security measures, including CCTV, managed access, caged storage areas, quality control checks, physical stock counts, and more.
We also utilise our advanced, in-house built technology for online stock reporting, allowing brands to ensure they always have access to the most up-to-date information for inventory management.
By outsourcing your contract packing, you can save money on labour, training, equipment and storage space.
What are the benefits of outsourcing to a contract packing company?
There are many significant benefits of outsourcing contract packing, including those we have already listed above.
Access expertise & innovative solutions
Outsourcing to an expert team means you’ll gain access to all of their prior knowledge and experience, which can be applied to your own brand’s processes. Granby has over 65 years of experience, much of which has been spent supporting brands with contract packing services.
With our extensive experience, we are confident we can support brands of all sizes across all industries. We pride ourselves on being efficient and innovative and are always searching for ways to enhance processes for brands and maximise customer satisfaction.
Having a contract packing provider also means your employees can focus on the brand’s core activities, including day-to-day operations and marketing of products.
Enhanced quality assurance
Working in a small team can make your brand more prone to errors and slip-ups in regulatory compliance. In contrast, a trusted contract packing partner can ensure every product meets stringent quality standards and complies with all applicable industry regulations, therefore, saving time and money in the long run, and protecting your brand’s reputation.
We take into consideration each product’s specifications before carefully planning storage and distribution. This background knowledge enables us to streamline operations effectively.
Streamlined logistics & supply chain
Having every aspect of your brand’s logistics in one place can be extremely helpful, as it allows you to access even more dedicated support. Granby offers support with every aspect of logistics, including warehousing and storage, packing and distribution.
Selecting a contract packer & high-quality service
Contract packing is a crucial part of running an eCommerce business, and it must be completed to a high standard to ensure efficiency in your business and a strong brand reputation. Read our blog on the future of contract packing.
At Granby, we support brands just like yours with effective packing solutions. We don’t just offer a transactional service; we get to know your brand like the back of our hand, ensuring that we understand every process.
We offer a wide range of brand fulfilment solutions, including customer service support, 3PL fulfilment, promotional marketing, reverse logistics and much more. We have worked with a wide range of established and growing brands, delivering reliable fulfilment and packing solutions across multiple industries.
Are you looking for a complete brand fulfilment partner? Then you should get in touch with our friendly team to discuss our comprehensive services.