Why manufacture packaging in house?

Why manufacture packaging in house?


Having an attractive packaging is an essential asset for any brand that must be positioned on a large retail shelf.


For years now, in marketing it has been used the term “first moment of truth” when the customer is faced with the product standing on a retail shelf,  at that time the packaging will be the silent salesman that will make the customer decide to buy it or not.

So the packaging becomes a totally strategic investment for many companies whose market goes through retail distribution depending on the presence of the product on a shelf.


Although many of these companies have a great knowledge of manufacturing their product, but they do not have it about manufacturing the associated packaging. This leads them to consider as first decision to outsource packaging manufacture, packaging sealing, or both with an specialized services company.


But if we have established packaging process as strategic, should not the possibility of manufacturing it in house be taken into account?


The manufacture of packaging in house, while presenting the barrier that involves the purchase and learning of the associated machinery, can be very profitable for the company either economically, marketing, logistics or quality control.


At an economic level, depending on the different types of packaging and the quantities that must be manufactured, the cost of doing it in house allows the investment of the machinery to be recovered in a period that can range from 3 to 7 years.

At the marketing level, the company will be able to create customized designs that allow the product to have more visibility once they are placed on a shelf.

Also, from the point of view of logistics and quality control you can expect really important benefits:

  1. The packaging will be manufactured according to production needs, which means that large quantities of empty pakaging should not be stored.
  2. It will improve the management capacity of production and service to customers by not depending on third parties.
  3. The company will be able to control 100% the quality of its finished product, improving its image, both for its client and for the final customer.

The decision on an investment of this type is undoubtedly complex, but taking into account these points is quantifiable and can be an important advantage in operations, image and sales.