5 benefits of partnering with a trusted co-manufacturer
16th July 2021 | 5 mins read
Eating habits are changing around with world, with a large population now opting for much healthier, nature friendly and humane food options. Being vegan is no longer a lifestyle choice for a handful. With an exponential rise in the demand for meat-less, dairy-less diets, plant-based foods are no longer just an alternative but a mealtime staple across millennial households.
Naturally, this has opened gateways for new food based ventures, as well as, provided established food brands with an opportunity to evolve their offerings for the new age consumer.
According to a research, plant-based food market is likely to grow at a compound annual growth rate of almost 12%, reaching to $74.2 billion globally by 2027.
With such a rapidly increasing demand for plant-based foods across the globe, businesses, big and small, are seeking innovative, productive and viable ways to scale up production and ensure an uninterrupted supply. An individual chef-preneur or even a restaurant kitchen, albeit producing top-notch products, cannot simply sustain large scale manufacturing on their own[2]. In a scenario like this, getting a a co-manufacturer on board is a great way for brands to limit their staff and equipment, cut down cost of production, increase speed of delivery to the market, maintain a constant supply of good quality produce and focus more on strategising success[3].
Finding a good co-manufacturer is like a match made in heaven. They are a company who will work closely with your brand, to manufacture, package and even distribute your products in bulk. A co-manufacturer is one of your closest partners who are privy to your business goals, product specifications, which even include original recipes and formulations. It is therefore crucial to choose a trustworthy co-manufacturer that understands and meets your budget, speed, quality and volume requirements[4]. Here are some ways in which a co-manufacturer can benefit your brand’s success:
Value added expertise
Good co-manufacturers will have rich experience working with a variety of industries. They will bring with them the expertise and knowledge in terms suggesting product enhancements, getting raw material and decreasing cost of production without any compromise on the quality.
Many co-manufacturers also help brands turn their concepts into reality with constant research and development, discovering new techniques and ushering in first-of-its-kind product line to the market[5].
Asset optimisation
Large scale manufacturing involves setting up of elaborate machinery and employing specialised staff. Having a co-manufacturer by your side eliminates this need[6].
A reputed co-manufacturing facility will be equipped with latest technology and equipment, operated by a highly trained workforce with an expertise to customise products as per the client’s needs. You can get your entire product line-up processed, packaged and brought to the market by a third party, saving your own time, effort and a great deal on the input cost.
Economical resourcing
Another potential plus point of working with a co-manufacturer is the cost efficiency in procuring resources. Co-manufacturers work with a number of different businesses, which allows them to leverage the advantages of scale in terms of sourcing ingredients, packing material and other essential components economically[7].
A co-manufacturer will be able to get you volume discounts, bringing down additional capital cost and boosting profit margins.
Logistic support
Storing and warehousing is the most crucial yet cumbersome part in the supply cycle. As a brand, you can completely skip the part of owning or renting out a warehouse facility.
Established co-manufacturers are fully operational to provide you with state-of-the-art refrigeration, cooling and ambient storage facility, living up to the best industry standards and regulations[8]. Moreover, many co-manufacturers will have their own fleet of transportation, assuring their clientele of highly regulated supply chain logistics and on-time delivery of products.
Getting essential certifications
Every consumable has to undergo certain quality approvals before being introduced to the shelves. A co-manufacturer would already have its facility certified. It can ensure that your products tick all quality and safety parameters before you roll them out into the market.
Further to this, your co-manufacturer can go a step further and get your products certified and quality marked, enabling you to offer assurance of quality and trust to your consumers without breaking a sweat[9].
Bottomline – you will get more time to create effective strategies to upscale your business, without having to take on the task of resourcing, processing, packaging, warehousing, transporting and distributing your products. You can potentially work out of a home-based workspace, with bare minimum infrastructural investment, and yet have end-to-end support to operate a large scale food venture. Comfort, convenience, quality, efficiency and expertise – a co-manufacturer takes up 360-degree responsibility of your entire process chain and leverages your business. Along with that, the gamut of solutions and services provided by a co-manufacturer will be tailor made and perfected according to your brand aspirations. All you need is trust, transparency and open communication, which are enough to create a strong, profitable and long-lasting relationship with your co-manufacturer.
Sources
[2] What is a Co-Packer, Co-Manufacturer, Co-Man and Outsourcing?
[3] 6 Benefits of Working with a Co-Packer
[4] Should I self-manufacture or work with a co-packer?
[5] Food Research & Development
[6] 6 Benefits of Working with a Co-Packer
[7] Should I self-manufacture or work with a co-packer?
