Chemical manufacturing units are big production units that are engaged in producing large volumes of chemicals. Base chemicals are produced in bulk quantities, and are transported in heavy-duty vehicles like tankers or rails to smaller business units for repackaging into smaller package offerings.
This results in chemical repackaging generally being done by contract manufacturers which have infrastructure to receive large volumes of base chemicals from business units, and experience in chemical packaging.
A well-equipped contract manufacturer takes care of the smaller packaging tasks for the larger chemical producers used to distributing in tanker quantities. The advantages of outsourcing this repackaging task to a contractor are listed as below :
Specialized Manufacturing Services:
A specialized contract re-packager will understand the buyer specific needs and can deliver accordingly. If a buyer has specific requirements in regards to dilution, special formulations, unique labeling, or unique packaging, it will be very difficult to be handled by a large production unit because this is typically not one of their core competencies. Therefore, a contract blender and re-packager plays a vital role in taking care of these consumer needs. A contract manufacturer is agile and flexible enough to be able to meet these unique needs for their customer base.
In the big production units, the chemicals are made in large batches, and then the contract manufacturers perform mixing, blending, or compounding to create the end product before packaging is performed. Additionally, quality control protocols are required for validating base chemicals in addition to a customer’s final product(s). The expert contractor manufacturers engage in strict quality control practices with qualified laboratory professionals to carry out quality checks and ensure the end chemical products meet all the required quality parameters for each customer.
Outsource Production Activity:
Having an experienced contract manufacturer allows the chemical producers to outsource a large part of their production work which are not a core competency. Most commonly, these contract manufacturers work as chemical blending companies, to help large chemical producers fulfill a wide range of products for their lower volume customer base. Before the contract manufacturer packages and distributes product for their private label customer, they mix the chemicals to form specific compounds and then carry out the packaging task. This allows each party (large chemical producers and contract manufacturer) to perform the tasks which they are most efficient in the marketplace.
Contract manufacturers have diverse equipment/infrastructure, vendor relationships and industry know-how to be efficient in carrying out small and large private label requests. Project managers are allocated to each customer, which learns every detail of your product, including deadlines. As a result, these contract manufacturers can fulfill orders with efficiency, without compromising on product quality.
Cost Saving Benefits:
Outsourcing production and repackaging work helps large chemical producers save a lot of money on equipment, labor, materials, and experience efficiencies. To quote a leading contract manufacturer, “No need for additional investment in your current production facilities when introducing a new product line or by (seasonal) spikes in orders.” Contract manufacturer’s allow your company to scale up without the extensive planning and capital requirements needed to implement these processes in-house.
Hiring the services of a contract manufacturer benefits the chemical producers in a lot of operational areas like administration, mixing, testing, implementation, research, and confidentiality agreements to keep your compositions and customer base safe. A reputable contract manufacturer understands they are an extension of YOUR brand. Therefore, they work on your behalf for next generation products, label/graphics enhancements, product traceability, and distribution.
With all these above listed advantages it is definitely a good choice for chemical producers to explore the outsourcing of repackaging work to a contract manufacturer. The specialty chemicals industry is a large, fast-growing industry and with the increasing demand in the market, it is important to keep pace with the competitors.
Therefore, it’s a wise decision to concentrate on the area of expertise and outsource the additional processes to an expert that can ensure cost control, quality, and consumer satisfaction. Please reach out to us here at Allied International Specialty Chemicals to learn about our capabilities, fulfillment rates, and commitment to customer service.