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In-House Packaging vs. Co-Packer: How to Decide
Dennis Feldbusch, Area Sales Manager at Hastamat, says the choice between in-house packaging and a co-packer depends first on production volume: one product running 24-7 favors in-house, while flexible short runs may suit a co-packer. Thomas Bornemann, Director Sales & Marketing, adds that new products often start with a co-packer and move in-house as capacity grows and a complete overview of quality matters more.
Key takeaways
- Dennis Feldbusch says one product, one filling weight and one bag running 24-7 makes in-house production the best way.
- If you need flexibility across different products and filling weights in shorter runs, Dennis Feldbusch says a co-packer may make sense.
- Thomas Bornemann says new products often start small with a co-packer, but as capacity grows and for a complete overview of quality, it is better to pack in-house.
Common questions
- When should a food company keep packaging in-house instead of using a co-packer?
- According to Dennis Feldbusch of Hastamat, it depends first on production volume. If you run one product at one filling weight in one bag 24-7, in-house production is the best way. If you need flexibility across different products and filling weights, running each only part of the day, a co-packer may make sense.
- Should a new food product start with a co-packer?
- Thomas Bornemann of Hastamat says it depends on the production capacity needed. Most new products start with small production, where a co-packer makes sense. As production capacity increases, and if the company wants a complete overview of quality, it is better to do the packaging itself.
- What factors justify investing in an automatic packaging system?
- Thomas Bornemann of Hastamat points to difficulty finding enough operators, reducing giveaway with a very precise weighing system, and increasing production capacity. Dennis Feldbusch adds labor costs as a factor in changing over from manual packaging to a fully automatic system.
Transcript
Tom Rougeux, President, Piepenbrock Packaging
Okay, Dennis, when does keeping production in-house make more sense than using a co-packer?
Dennis Feldbusch, Area Sales Manager, Hastamat
I think in the first case it depends on the volume of production. So for example, if you're having one kind of product, one filling weight, packing in one bag 24-7, then for sure in-house production is the best way to do it. If you need the flexibility, different kind of products, different filling weights, producing only maybe eight hours a day this product, eight hours a day this product, then maybe a co-packer makes sense.
Tom Rougeux
You know, I see a lot of new products on the market, Thomas. Do you think that most new products go to a co-packer first and then they make a decision?
Thomas Bornemann, Director Sales & Marketing, Hastamat
I mean, that's depending to the production capacity the customer needs. So with new products, most of the customer starts with a small production. In that case it makes sense to go to the co-packer, but if you increase the production capacity and if you like to have a complete overview in case of quality, then it's better to do it by yourself.
Tom Rougeux
When does a customer know that they can economically afford an automatic system? So what items are involved to really think about whether or not you can afford a system from Hastamat?
Thomas Bornemann
If you have problems to find enough operator, that's also a point, you know. Then this point becomes more and more important, you know, to change over from manual packaging to a fully automatic system, yeah. But you are right, you know, if you talk about reducing giveaway, you have to look for a very precise weighing system, yeah, and also to increasing the production capacity, yeah.
Dennis Feldbusch
It's using labor costs.
Thomas Bornemann
Yes, absolutely.
