A Global Packaging Trend

Packaging is an industry that always seems to have new buzzwords. Recently, you may have read or heard a lot about sustainability, RFID or Six Sigma, to name but a few. You will want to ensure that you have a clear understanding of these buzzwords and other concepts, and how they will affect your job function, department and the industry in general. Trying to come up with new and innovative packaging, or redesigning and developing line extensions that address the ‘hot topics’ of today and tomorrow requires knowing the tools that are available to assist and support your initiatives in these areas. Help does exist – in one of many forms of packaging outsourcing.

Outsourcing in packaging is a global trend with two major categories. One category involves outsourcing the physical packaging process, also known as product-based outsourcing. This category includes: co-packers; packaging equipment manufacturers and distributors; and processing and manufacturing facilities. The second category, which is our main focus in this article, involves outsourcing the packaging services, also known as outsourcing the packaging function. A few examples of companies in this category include contractors, consultants and newly evolved packaging outsource service firms (POSF).

THE ORIGINS OF FUNCTION OUTSOURCING

A brief look at the evolution of outsourcing the packaging function helps one to better understand both the history and purpose of this trend in the industry. The trend began with the introduction of packaging consultants, who were, and still are, used throughout the industry for their wealth of knowledge and expertise in specific areas of packaging. Over the last decade, outsourcing of services has developed further, with the creation of long-term contract workers and contract agencies, which are now commonly used to support functions of packaging departments for major multinational corporations.