How to Internationally Outsource Packaging

In the United States today, nearly half of all outsourcing is conducted beyond national borders. Business processes such as packaging can be easily outsourced to facilities internationally which operate using the latest technology and offer companies substantial cost benefits for the use of their services.

Difficulty: Moderate

Instructions

Things You'll Need:

• Product
• Packaging design

Outsource Packaging Internationally

1. Work in-house or with a contracted product packaging designer to develop your product's packaging look and feel. You may be able to bundle this service into your contract when you outsource product packaging. However, you should not take for granted that these services will be offered by every internationally based outsourcing partner you work with.

2. Keep in mind the benefits of outsourcing business processes such as packaging. Primarily, your company will save money by eliminating the need to invest in technology, equipment and personnel involved in the packaging of your goods.

3. Ask your future outsourcing partner about other services they may offer including manufacturing and distribution. By consolidating these processes under one roof of a single outsourcing company, you may be able to create a more cost-effective approach.

4. Work closely with your outsourcing agent during the negotiation process when you outsource internationally. It is key to the success of your outsourcing project that a high level of trust be established between your company and the packaging company you outsource to. Each of you must have full knowledge of the project's objectives and agree on the best methods to reach them.

5. Put in place metrics or measurements to help determine if the goals and objectives of this packaging process are being met. This should be outlined in any contract you develop with your outsourcing partner and may contain details such as packaging quality testing through random sample.

6. Be sure that your contract specifically states what rights fall to your party upon termination of the contract with your packaging outsourcing partner. This is a particularly important issue if you are using a packaging style that reflects your brand or involves a new or recently acquired technology. Your company should be able to retain the rights to use this style or technology even upon the dissolution of its contract with the packaging provider.

Tips & Warnings

• Consider working with an outsourcing agent if your company has never utilized the services of an internationally based company before. These independent agents can provide you with referrals to tested facilities and may be able to act as negotiator on behalf of your company.

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