Bulk breaking of goods is nothing more than packing and preparing specific products for shipment. This seemingly simple process, however, requires the organization of several, and often several dozen of people and appropriate space. Therefore, is it worth it? Let’s find out in the article.
BULK BREAKING OF YOUR GOODS
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BULK BREAKING OF YOUR GOODS - WHAT DOES IT MEAN AND HOW TO LOWER COSTS?
Let’s start with the concept of breaking bulk.
Bulk breaking, or in other words co-packing, is nothing else than packing and preparing goods for shipment. The entire process involves a number of specific activities, such as labelling, applying markings, adding advertising materials, or repacking into other packaging.
Importantly, a seemingly simple process can increase your profits or, on the contrary, generate costs. Why is it like that? The easiest way to explain this is with an example.
Breaking bulk of goods in practice
Company X is a manufacturer and distributor of its own brand of cosmetics. On the occasion of Christmas, they decided to prepare a special Advent calendar, but not only with their products. Company X invited company Y, an importer and distributor of cosmetic accessories, to cooperate.
The Advent calendar has 24 windows, so we have 24 products to pack, from two companies. The set consists of the following components: a box, an insert, 24 products, heat-shrinkable foil, boundles and a label for the boundle packaging. Everything has to be assembled and properly labelled.
Obviously, company X can do it themselves, but it requires appropriate logistics facilities, primarily space and people. The company can also outsource this process to companies such as DTA. What does the process look like then?
We launch a manual production line.
One person assembles the box.
Several people on the production line put several products into the insert, carefully maintaining the order (1 person = 4 products).
The next person places the filled insert in a package with calendar windows.
Another person secures the places where the package is closed with so-called rings.
The next person is the operator of the welding machine. He/she places the packaged product in a foil sleeve and then the heat-shrink sealing process begins.
Another employee places the calendar ready to be placed on store shelves in a collective packaging.
Once the package is full, it should be closed and marked with an appropriate label.
Finally, the boxes are placed on pallets and in the warehouse waiting for shipment. The seemingly simple process requires as many as 13 people per production line, which puts a heavy burden on the company. Therefore, does it make sense? And can high costs be avoided?
Let us answer the second question in a moment, but for now we will focus on the advantages of co-packaging the goods.
Is it worth it?
Co-packing of goods is perfect for Christmas and special days, such as Mother’s Day or Children’s Day. Of course, it all depends on the industry you operate in. However, we see that the interest in ready-made sets is growing every year.
You can also use co-packing for special offers, e.g. summer promotion or the beginning of the school year.
This is also a great solution if you operate in the e-commerce industry and do not have the facilities, human resources or the ability to invest in them. In this case, not only can we prepare specific items, but we can also handle all orders and returns.
Thanks to our knowledge of the regulations, we will take care of your food products and cosmetics in an appropriate manner.
Let us go back to the topic: preparing dedicated sets will certainly help build your image during conferences or fairs. It’s not about a great gift for participants, but about a coherent and distinctive gadget.
As you can see, you can use the packaging of goods both for promotion and to expand your offer. If you know this is something for you but you are worried about the costs – we have a solution.
Co-packing – how to reduce costs?
The costs if you want to do everything on your own can be high. First of all, you will have to employ several or even several dozen people on a seasonal basis. This requires another person to supervise them (control plays one of the key roles in this process). Additional employment also means additional work for the accountant and additional costs.
And space – if your company does not have a larger space to organize everything, you will have to rent it.
One of the solutions to reduce all these costs is to outsource everything to an external company. You will save your time and money, and you will gain peace of mind and the guarantee that your products are handled by people who have been doing it for years. Your task will be limited to providing specific instructions and collecting the goods.
And if you need support in co-packing of your goods, please visit DTA. We have been supporting entrepreneurs in their development for over 30 years. Our employees will prepare stands with your products, pack the products into discount packaging, prepare multipacks, add samples to the assortment and much, much more.
Please contact us:
phone: +48 693 298 777
e-mail: magazyny@dta.com.pl