Why Invest In In-House Packaging For Your Product Line?

We hear a lot of people questioning themselves on why invest in in-house packaging for your product line. It is a hefty investment after all, so it is important to understand whether it is a smart business move that suits you first.

In this blog, we will give reasons why business owners may wish to bring packaging operations in-house, as well as some reasons it may not be the right fit.

What Is In-House Packaging?

Businesses of any size, huge conglomerates or small independents, that choose to package their products in-house. While this can be a significant undertaking with a hefty upfront cost, the return on investment can be markedly impressive over the long term.

When undertaking in-house packaging duties, you are responsible for providing the physical space for your packaging line and any operational or financial oversight that applies to your supply chain.

By taking control of operations in-house, your business is solely responsible for storage, utilities, equipment, logistics, personnel training, supplies, and just about anything else you can think of. Your business functions entirely within its own four walls, where you can oversee every detail.

Some companies thrive when they have complete control over every part of the supply chain. It can depend on management style, resources and available equipment. Though control is regularly cited as the reason to opt for in-house packaging, there are many more reasons to invest.

In terms of resources and equipment, one of the biggest sums your business must undertake to control its supply chain in-house is packaging machinery. Then over time, you must budget for machine operators, wear parts replacement, and maintenance. While this does sound like a potential burden, your business may receive certain tax benefits from the acquisition and depreciation of capital equipment.

Why Invest In In-House Packaging?

1. Quality Control

By monitoring packaging processes in-house, you can ensure that there is consistent quality and uniformity throughout your packaging.

For customers, consistency is something they expect and keeps them happy. Yes, this applies to branding, but it also feeds into waiting times, interactions, and packaging.

All in all, consistency is an important predictor of overall customer experience and loyalty, so your business must get this right.

When you choose to invest in in-house packaging for your product line, you have the flexibility to customise your packaging so it is better suited to your products and branding.

2. Flexibility

When you invest in in-house packaging, you have more control over how long the production process takes. As it is your priority to maintain customer satisfaction and loyalty, lead times and faster deliveries are something you can oversee.

It is also much easier to adapt packaging designs and alter production operations when it is in-house, as internal communication is generally easier. For this reason, in-house packaging is seen as more adaptable.

3. Streamline Operations

Monitoring your packaging for your product line can lead to improved overall efficiency, as everything is all in one place. Having more streamlined operations will improve inventory management, reducing the risk of stock shortages or excessive ordering.

When your business holds too much inventory, your ability to be cost-efficient and agile is impacted. On the flip side, if your stock levels are low, you run the risk of continually disappointing customers due to products being ‘out of stock’, causing frustration and an unreliable brand image.

4. Enhanced Brand Control

Some business owners wish to oversee and maintain control over every aspect of their product line.

Packaging design is critical for communicating a brand’s image and identity.

Business owners have a better understanding of their brand identity than, well, anyone else. Therefore, by investing in in-house packaging, they can ensure delivery and packaging services emulate their brand identity without having to direct or consult with contract packagers.

It also means that should they wish to implement promotional packaging and limited-edition designs; it is easier to roll out when the business maintains control of packaging operations.

Risks When You Invest In In-House Packaging For Your Product Line

When you invest in in-house packaging for your product line, there are a few risks to be aware of. You will only be able to reap the benefits of your investment if your business is fully prepared to take on such a task.

• In-house packaging requires specific equipment and expertise that not every business may have access to. If you don’t already have people on-site with these skills, you will need to go through a hiring process, which can always be costly.

• For some businesses, it may not be feasible to source and install packing equipment, both economically and in terms of space.

• Based on your business’ geographical location, it may be difficult to distribute your product line nationally, limiting the scale of your business.

• For global shipping, it may be more economically efficient to ship your product in bulk and then be packed locally.

• It may be a greater priority to bring other operations in-house, as opposed to packaging.

• Your business may need to make a substantial investment to meet the regulatory requirements of packaging.

• If your business is in the process of corporate downsizing, in personnel, facilities, or both, it may not be viable to bring packaging in-house.

Why Trust Granby With Packaging For Your Product Line?

When choosing to work with Granby, you can still maintain the benefits of in-house packaging without needing to take on such an immense and costly workload. We will ensure your packaging is:

• Cost-effective

• Attractive

• Easy to assemble

• Robust

• Constructed using sustainable materials with a low environmental impact

As a proactive contract packaging partner, we involve you throughout the whole process, from start to finish. We don’t believe you should need to fork out such a hefty investment just to ensure things are done correctly. That’s what we’re here for.

If you are interested in partnering with us, we would love to chat! Contact us via our website, email us at hello@granbymarketing.com, or call 01254 682 702.