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Contract Packaging White Paper: Success built on partnerships and know-how

White paper from Weatherchem details how packaged goods companies (CPGs) must work together with contract packagers and material suppliers to achieve the holy grail of collaborative planning, forecasting and replenishment (CPFR) that is critical for outsourcing success.

Today, contract packaging makes a $20 billion statement in the marketplace. And it punctuates that statement with a 10 percent growth rate. “The use of contract manufacturing and packaging services is surging, and the brakes will not be applied anytime soon,” declared Jim George, editor in chief of Contract Packaging magazine. “Many large and small consumer packaged goods (CPG) companies plan to increase their use of these services.”

Along with retailers, suppliers and consumer packaged goods manufacturers (CPGs), contract packagers traffic in everything from personal hygiene products to popular food items to life-enhancing pharmaceuticals. But the traffic moves efficiently only when it moves together. As the IBM Institute for Business Value has observed, the retailer recognizes that serving increasingly savvy consumers requires thinking and working in concert with CPGs. The CPG seeks the services of contract packagers for obvious reasons: the cost advantages inherent in outsourcing, enhanced speed to market and the multiplier effect gained by relying on specialists to move products to shelves. Co-packers, in turn, look to reliable, innovative suppliers to ensure that the chain keeps consumer goods moving to that demanding market.

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