Taming the Fear of the Unknown with Equipment

According to Business Wire, the global Contract Packaging market is projected to grow by over $20 billion in the next five years. Contract packaging refers to the outsourcing of packaging activities to third party vendors. This is an industry that isn’t necessarily easily recognized by brand, however the products that are being utilized by everyday businesses are coming from these companies.

The reason these companies have become more popular is a result of being usually a smaller organization as compared to their customers. Thus, they can manufacture, pack, repack and/or distribute faster than their larger company clients. In addition to their smaller size and less management hierarchy, they can re-tool or modify their packaging lines faster when the market demand for their clients’ products change for the better or worse.

Unfortunately, the challenge to selling to these companies is eliminating the fear of the unknown. Their constant fear is they are only one expired, lost contract or having their customer decide they can manufacture the product more efficiently internally, away.  As a result, a contract packager will base their capital expenditure towards the contract at hand instead of a larger picture of having versatile equipment that will satisfy both the present and future packaging needs. This also explains why the contract packager will always ask if you have any used equipment that will increase their present operational efficiencies.

Based on just a few hundred boxes per day provides the 12 month return on investment that qualifies a contract packager with the necessary versatile equipment that can assist their current contract(s) while providing decreased future labor expenses, increased packaging supply savings and faster packaging throughput. Therefore, increasing their profit margins and earning potential with additional business.

Examples of this equipment include: shrink systems (sealers and/or heat tunnels), case formers/sealers (after forming the box and placing the product inside allowing the machine to apply tape to seal the box). During this process of taping the box, an ink jet printer to print an alphanumeric lot code, date code or even bar code for product tracking. The next step in the packaging process is applying a label(s) with even more or additional information.  Finally, the last piece of automation that can tame the fear of the unknown is a stretch wrapper (eliminating the dreaded job of walking in circles around the pallet while stretching film across the boxes to make sure the product remains on the pallet during transit).

Now you may be asking yourself, these pieces of equipment sound all so familiar. Indeed, you are correct; each is available along with their corresponding supplies through Piedmont National.

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