The retail industry is bustling and the growing demand makes it even more competitive. Businesses choose to outsource a part of their production to third party companies. With the recent technology and fine-tuned experience, 3PL companies allow faster and free shipping, not to mention lower overhead costs. Contract packaging services in Los Angeles are just a few of the third-party providers that help other business catch up with the supply chain’s state of flux.
But how does it actually work on the bigger picture? Packaging companies in Los Angeles usually do the following:
Accommodate order flexibility
Compared to maintaining an in-house packaging system, contract packaging companies can handle bigger orders. This is a crucial aspect, especially for companies who are always under high demand and strict deadlines. The orders will be sent to the warehouse of the packaging company for faster picking and packing as the orders stream. Also, this means reducing space requirements inside the production house where quality maintenance can be a pain.
Outsourcing the packaging and delivery of goods will ensure that order surges are handled well.
Transparency within the supply chain
Retail fulfillment nowadays uses automated systems to track products that circulate in the supply chain. An experienced 3PL provider can do this with precision and speed – the two most important foundations of distribution. Large companies use the RFID technology to track the products without having to count it manually. It speeds up delivery while utilizing time and resources on other logistical tasks. With the products arriving on time, the business will experience more sales.
Larger profit margins
Inventory management doesn’t just consume endless hours when doing it in-house. It also eats up resources and piles up expenses in the maintenance of equipment and additional personnel. This is what contract packaging companies solve. 3PL providers have more purchasing power. They can secure bigger discounts which they can pass on to retailers. These savings translate to larger profit margins among retail partners; a good sign of business and patronization. Not to mention the performance of best practices, availing contract packaging Los Angeles style will be cost-efficient.
Better customer experience
The packaging of the product sets the first impression among buyers. The easier it is to open without sacrificing quality, the better. Many consumers demand packaging that is child-proof, especially for pharmaceuticals products. Aside from securing the goods inside, the packaging is also an excellent avenue to improve branding awareness. Contract packaging companies who can come up with creative designs that will enhance customer experience is the best to partner with. Enjoyable unboxing is a thing nowadays; contact packaging can make it work to your advantage.
More options, lower cost
The most experienced packaging companies in Los Angeles deal with shipping carriers that charge based on the dimensional weight of the products. Instead of charging based on the space that the products occupy, dimensional weight takes into account the weight in relation to the occupied space. Retailers who outsource their packaging will likely enjoy this benefit, especially if they are shipping large quantities.
By using the best contract packaging services in Los Angeles, retail fulfillment shouldn’t be a burden to businesses.