Contract packaging: Base the decision foremost on adding value

Outsourcing packaging operations has become a popular way for consumer packaged goods companies to reduce costs and gain other benefits. But Thomas Bacon, founder and president of Aaron Thomas Co., a contract packaging service provider, has a message for CPG companies: The real litmus test, when contemplating the decision whether to make in-house or to outsource, is whether having someone else package your products adds value. Bacon, in an article posted on Makingmoneylast.com, argues that contract packaging is about more than merely saving money. It should be a strategic option in CPG companies’ effort to grow their brands.

The decision to outsource can be strategic or tactical, depending on the scope and duration of your needs for a contract packager.