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SIDEBAR: How CPGs can energize the IVC model

Purchasers of contract-packaging services at consumer packaged goods companies can help facilitate the IVC model by developing a network of the types of contract packagers that meet their needs.

Key areas to consider in creating this network include:

• Manufacturing capabilities

• Quality programs and testing

facilities

• Inventory and distribution

capabilities

• Research and development and packaging capabilities

• Management of confidentiality

• Exclusivity expectations

• Overall cultural fit

By developing and maintaining this network, consumer packaged goods companies can operate nimbly in finding the right contract packager for a particular project. It also provides shop-and-compare opportunities.

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