With product innovation and development moving at a more rapid pace than we have ever seen in the industry, outsourcing services together with processing and packing has become an excellent option for many divisions in a food organization.
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Explore this issueJune/July 2018
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There are many motives for an organization to outsource activities, including:
- Accelerating the innovation cycle;
- Freeing internal resources for other project work, or utilizing the expertise needed for a specific task;
- Accessing technology, including process methods such as high pressure processing and different formats of packaging;
- Increasing production or personnel capacity;
- Accessing a geographic advantage gained from a strategic partner to open availability to a market or manage regulatory restrictions that can be imposed by import/export;
- Testing innovation for market success before investing in infrastructure; and
- Avoiding the investment in a manufacturing facility or contracting manufacturing to fully focus on brand development.
To be specific, outsourcing is the contracting of any service or process step, including packing, undertaken by another company. This requires a great deal of trust to be established and maintained in the outsourced partnership, especially when food safety and quality are essential. Success has been found in outsourcing all or parts of manufacturing, packing, product development, labeling, regulatory reviews, auditing, testing, and product evaluation. Outsourcing needs to be treated as an extension of your brand and your company.
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