Frequent changes in consumer preferences and lifestyle choices means that firms need to continue to innovate. New products must be developed, refined, tested and taken to market as quickly and as safely as possible to satisfy demand as it comes. To facilitate this, processes need to be streamlined and operations must be efficient.
In the current economic climate, contract manufacturing and contract packaging have become increasingly popular in the food industry, especially if it comes to produce products internationally. Close cooperation within a supply chain can be considered as an essential competitive advantage.
Let us see in details the outsourcing forms most commonly used in food industry.
A contract manufacturer (co-manufacture or co-man) is a manufacturer that is contracted to produce a company’s product line. Contract manufacturers usually have multiple customers that they produce for. Because they are servicing various customers, they can offer reduced costs in acquiring raw materials by benefiting from economies of scale.
CONSUMER CONTRACT PACKAGING
A contract packer (co-packer) is a company that receives finished goods in bulk and packages it for their clients. Secondary packaging refers to the next layer of packaging or the packaging used to group various pre-packaged products.
CONTRACT MIXING AND BLENDING
One of the first steps to manufacturing quality food products is ingredient blending. Contract blender possesses an art equipment. Highly experienced technicians of contract blenders will blend all forms of dry ingredients and create masterful blends.
Other food processing capabilities, such as extrusion, spray drying, re-packaging, and sifting can be outsourced as well.
The food extrusion process involves forcing mixed ingredients through a perforated plate to cut the end product into a specific size and shape. A food extruder typically is used for such products as bread, confectionery, cookies, cereals and even pet foods.
CONTRACT SPRAY DRYING
Spray drying is one of the most effective ways to dry foods and other products that are typically heat sensitive.
The supply chain for food products is long and winding. Sometimes customers need ingredients packaged in different sizes or packaging formats than a company can provide, and this is where re-packaging becomes valuable. A food packaging manufacturer can leverage comprehensive packaging services and flexible equipment to offer re-packaging services that help meet their customers’ needs and keep costs down for the end consumer.
Some companies specialize just in sifting. Their innovative vibratory sifter equipment will help to protect ingredients from unwanted contaminants and ensure particle sizes align with the spec a company desires.
Companies are finding many reasons why they should outsource their production to other companies. Here are some perks and benefits of outsourcing for food manufacturers:
Companies save on their cost of capital because they do not have to pay for a facility and the equipment needed for production. They can also save on labor costs such as wages, training, and benefits. Some companies look for outsourcing so they can cut out there overhead expense and bring up their profit margins so they can focus more on marketing.
Increased business’ flexibility
Greater product visibility, increased management of costs, flexibility and environmental benefits are also some of the benefits food manufacturers can derive from the process.
High quality of products
With co-manufacturing and co-packing, companies can take advantage of skills that they may not possess, but the contract manufacturer or the co-packer does. The contract manufacturer is likely to have relationships formed with raw material suppliers or methods of efficiency within their production. Contract manufacturers are likely to have their own methods of quality control in place that helps them to detect counterfeit or damaged materials early. With co-manufacturing and co-packing, companies can focus on their core competencies better if they can hand off base production to an outside company.
ARE YOU PLANNING TO BRING AN EXCEPTIONAL PRODUCT TO KAZAKHSTAN WITH POSSIBLE SALES IN THE CIS COUNTRIES AND ASIA? PLEASE CONSIDER A CLOSE COOPERATION WITH THE INITIATIVE “MADE IN KAZAKHSTAN.”