Co-packers, Co-partners
December 9, 2009
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Working with your co-packer at the drawing board is invaluable.
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Working with your co-packer at the drawing board is invaluable.
By Steffen Weck
Anyone who’s been in the business for more than about five minutes knows that bringing a new product to market is a process that involves many steps. From conception to execution, it takes a lot of time, effort and teamwork before your idea is put into the hands of the consumer — literally.
Since so many brand owners work with co-packers, it may make sense for some to work with their co-packers from the bottom up; that is, to join with the manufacturer in the initial stages of product development. With attention to detail and strong communication, this can be a very effective way to work.
Smart Moves, Savvy Choices
There are several reasons why pairing with your co-packer on the R&D level can be a smart strategy. The first reason is that co-packers likely will have experience in formulating the type of product you want to create. Unless your product idea is truly wacky (and even if it is) there’s not much a seasoned industry co-packer hasn’t worked with before, in at least some capacity. Their experience in producing similar types of products is highly beneficial when drawing up the specifications for your own product. Weight, color, unit size, etc., are all details that benefit greatly from input from someone who’s seen similar concepts. You could end up saving a lot of time and money by working with someone who knows how to calibrate those particulars from the beginning.
Co-packers also may have the ability to access unique and/or expensive equipment that you might not be able to play with otherwise. Knowing how the latest technology can achieve certain product attributes may open up possibilities that you had never considered, and the co-packer’s knowledge of the technology and manufacturing capabilities of certain processes can make a huge difference in how you see the scope and reach of your product.
Furthermore, since it’s generally a given that a co-packer who helps you develop a product is going to be the one who manufactures it, the ability to test-run and experiment becomes much more plausible if you work with that co-packer from the start. Being able to try things out early can save a lot of time later.
The third and perhaps most enticing aspect of working with a co-packer at the product-development drawing board is the speed-to-market issue. When you’ve been working side by side with your co-packer from an idea’s inception, by the time you’re ready to actually produce the product, there’s a lot of ground you don’t have to cover: you’ve been there, done that. The time the co-packer has invested in development contributes to the next stage of production. The goods can be delivered to the market at a much quicker pace, making everyone happy.
Keeping it Real (Clear)
As in any work relationship, establishing boundaries and making sure everyone’s job is clearly defined is wise. When pursuing the development process with a co-packer, this is especially true. Big problems can arise from misunderstandings and poor communication when you’re teaming up in the beginning stages of a new product.
Ownership retention is an issue that is sometimes forgotten, either because the parties make assumptions without clarifying, or because they’re uncomfortable dealing with the possible response they’ll get when they say, “Hey, let’s figure out what part we both have played in the generation of this idea.” It is crucial to address issues of ownership, proprietary rights, or any other “this is mine, that’s yours” before sharing any confidential information on either side.
In most cases, a well-managed relationship with a co-manufacturer will mean never having to deal with the issue of ownership, but if a relationship turns sour, both parties can end up in court. Worse still is the possibility that a successful product is removed from distribution because of such a debate.
Another possible issue that arises, perhaps more frequently, is that of a co-packer claiming to have the ability to produce a specific product when in fact that is not the case. When a project team spends valuable time qualifying the co-manufacturer only to discover after three months that the co-packer isn’t prepared to deliver, it’s a big problem. Project timelines have to be re-established, which usually means the project team loses credibility with upper management and, of course, the product launch is delayed.
Co-Packers Extraordinaire
Finding the right co-packer and then establishing firm working guidelines, (including being clear about expectations and ownership) can pave the way for a trouble-free experience. Not all co-packers have experience in R&D, and many manufacturers have in-house R&D departments that keep to themselves, but if you have leeway and can find a co-packer with whom you feel comfortable, teaming up on the ground floor of product development can be an educational and (we hope) fruitful experience for your business.
Steffen Weck is founder of consulting firm Food Business Consulting, a full-service, concept-through-commercialization resource based in Kansas City. He can be reached at weck@foodbusinessresource.com
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