You work with one or several Chinese manufacturers. You want to have labeling and/or packaging done outside of their premises in order to insulate them from your IP, pricing, or distribution channel information; or perhaps you just need professional help to improve the quality of your packing.
We can provide this co packing in our own South China facility in Shenzhen’s free trade zone.
Co packing stands for “contract packing”. You contract our company to do packing, warehousing, and (as needed) shipping on a whole batch of products, or on a series of orders.
Either you contract us as a service provider, and we invoice you under the incoterm EXW Shenzhen, or we take possession of the materials and we ship them to you (for example, FOB or DDP).
In case specialized equipment is needed, or the volumes justify working on automation, the approach to follow needs to be discussed upfront.
Here are some examples of situations where importers chose to have us do this work:
- A factory’s packing department is incapable of meeting the quality standard consistently.
- A supplier should be kept in the dark regarding the distribution channel and/or the pricing, and that means they can’t be given the labeling & packing work.
- An importer works with two suppliers who should never be in contact with each other, yet there is a need to pack products from different suppliers together.
In our facility, we also assemble and test custom-made products at a high quality standard. Our operators and line leaders all have quality in mind, and our inspectors give the necessary feedback.
When your suppliers bring their goods to our facility, it is the same as exporting the goods, since we are in the Free Trade Zone. They can apply for the VAT rebate, get paid, etc. Then, the goods are in our warehouse and you have the flexibility of keeping them there for some time, shipping them to different countries, etc. as needed.
You arrange for products to be sent to our facility. Your other suppliers coordinate with us on delivery and need to be clear about what products are in what cartons (if there is a mix of different products).
If needed, we design, purchase, and inspect packaging elements. We can source the packaging materials (from small plastic bags to pallets) and/or use those sent to us. Please keep in mind, there is a lead time for ordering custom-printed packaging.
We perform the service (packing the products as per your specifications). We typically conduct a quality inspection and send the report to you.
Getting an agreement on exactly what to do is crucial. We like to prepare samples to get your approval before starting. In case of complex packing, or for regular work, we need a work instruction (or we develop one for your approval).
What does co packing cost?
The amount depends on the work to do (number of hours of labor, complexity of setup…). The minimum is 500 USD per batch.
Don’t miss these FAQs about our FTZ facility!
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