Increased flexibility and reduced costs are two top reasons why manufacturers outsource their secondary packaging services, according to The 2009 Secondary Packaging Outsourcing Report, sponsored by third-party logistics company Saddle Creek Corporation and Contract Packaging magazine.

The report is based on nearly 500 online survey participants, more than 200 of whom outsource secondary packaging services such as assembly, fulfillment, cartoning, point-of-purchase displays and bundling.

Research highlights include:

• Nearly half (41.1 percent) of respondents outsource some or all of their secondary packaging services. 

•  A significant number of these companies (34.6 percent) outsource 75 to 100 percent of their secondary packaging services.

• A quarter of respondents (24.4 percent) who already outsource expect to increase their outsourcing of secondary packaging "somewhat" or "substantially" in the next 12 to 18 months. Roughly half (53.7 percent) expect their level of outsourcing to stay the same.

• "Increased flexibility" (64.5 percent) and "reduced costs" (62.1 percent) are viewed as the top two benefits of outsourcing by respondents who currently outsource.

• Roughly a third of respondents who outsource feel it would be "valuable" or "very valuable" if their provider offered integrated logistics services such as warehousing, distribution, and transportation as part of the packaging service offering. 

"Manufacturers are recognizing the value of outsourcing their secondary packaging services in order to move products to market as efficiently and cost-effectively as possible," says Robert Pericht, senior vice president of warehouse operations at Saddle Creek. "The research confirms what our customers have seen firsthand -- a strategic decision to outsource can make a significant impact on supply chain efficiency."

The full report is available from the 3PL.

Source: Saddle Creek