Insights

Innovative contract packaging solutions that drive efficiency and growth

Written by Metro Supply Chain | Feb 13, 2025 2:07:22 PM

In today’s competitive market, packaging is more than just a necessity. It is a strategic tool. Thoughtfully designed packaging enhances a product's value, boosts customer satisfaction and keeps costs competitive. Achieving this balance requires expertise in design, execution and supply chain integration. 

Many brands turn to supply chain experts, such as Metro Supply Chain, for contract packaging and co-packing services. These services include packaging, labelling, bundling and distribution, which help streamline operations and allow businesses to concentrate on their main activities. Contract packaging employs advanced technologies and customized solutions, helping businesses scale sustainably.  

In this blog, we explore the latest contract packaging innovations and how they’re helping brands grow. 

Contract packaging vs co-packing: What's the difference? 

Contract packaging and co-packing are often used interchangeably in the packaging industry, but there are subtle differences based on the context. Here's a breakdown: 

Contract packaging involves outsourcing packaging operations to a specialized third-party company. These providers handle various supply chain tasks, including assembling, packaging, distribution, quality control, custom packaging design, logistics, and inventory management. It is widely used in industries like pharmaceuticals, cosmetics, and retail, where specialized packaging or regulatory compliance is crucial. 

Co-packing, or cooperative packing, focuses primarily on the physical act of packaging products, including filling containers, labeling, shrink-wrapping, display building, bagging, pouching, and other turnkey solutions with material sourcing. For instance, a co-packer might fill jars of sauce, label them, and prepare them for shipment. This approach is popular in industries like food and beverage, personal care, and small-scale production.  

Bringing it all together—a contract packer’s suite of service offerings can include co-packing services for clients.  

The latest contract packaging innovations 

 

Robots at work: automating the co-packing process 

Robotics in co-packing operations are reshaping the industry by bringing speed, precision and adaptability to packaging workflows.  

According to research by McKinsey, automation will represent 30% or more of capital spending in the next five years for logistics and fulfillment companies. At Metro Supply Chain we’re constantly looking for better ways to serve our contract packaging customers, and that includes investing in automation. Through economies of scale, you can benefit from our investment while gaining a more efficient supply chain.  

Some advanced robotics Metro Supply Chain has employed to revolutionize our contract packaging operations and support our workforce include:   

  1. Pick-and-place robots: These robots excel at picking up items from one location and placing them in another, making them ideal for tasks like sorting, assembly and packaging. Their speed and accuracy are perfect for high-volume operations. 
  2. Collaborative robots (Cobots): Cobots work alongside our employees, assisting with repetitive or physically demanding tasks. They are easy to program, flexible and safe for close human interaction, making them a popular choice for small to medium-sized operations. 
  3. Automated guided vehicles (AGVs) and autonomous mobile robots (AMRs): These robots transport goods, materials or finished packages across the warehouse or production floor. AGVs follow predetermined paths, while AMRs use advanced navigation systems to adapt to their environment dynamically. 
  4. Box-on-demand robots: These robots specialize in arranging products into boxes or cases for shipping. They can handle various product shapes and sizes, ensuring efficient use of space and consistent packing quality. 
  5. Cartoning robots: These robots automate the process of folding cartons, inserting products and sealing packages. They are widely used for consumer goods like food, beverages and pharmaceuticals. 
  6. Robotic arms with vision systems: Equipped with cameras and sensors, these robots can identify, sort and handle items of different shapes, sizes and orientations. This makes them invaluable for co-packing lines requiring flexibility and precision. 
  7. Wrapping and sealing robots: These robots handle tasks like shrink wrapping, banding or sealing packages. They ensure consistent, high-quality wrapping and sealing for improved product protection and presentation. 

By adopting these robotic solutions in our contract packaging operations we’re able to boost productivity, reduce costs and enhance consistency, all while meeting the growing demands of modern supply chains.  

Artificial intelligence drives the future of contract packaging 

AI is transforming contract packaging by making operations smarter, faster and more adaptable. By harnessing real-time data and machine learning algorithms, AI can optimize everything from production schedules to inventory management, reducing waste and improving efficiency. Here are ways AI is driving contract packaging efficiency: 

  • Demand forecasting: AI identifies trends and predicts demand based on historical data, enabling companies to optimize inventory and packaging ahead of time. 
  • Streamlined workflows: AI-driven systems pinpoint inefficiencies, offering smart solutions to save time and resources. 
  • Enhanced quality control: Machine learning detects defects with greater accuracy than human inspection, ensuring top-notch quality. 
  • Research and development: The industry is seeing AI platforms speed up design conceptualization, mock-up creation, and material selection for an optimized end product. 

In a high-performing contract packaging operation, incorporating AI means higher throughput, fewer errors and the ability to scale quickly to meet our changing customer needs—all while driving cost savings and improving overall performance. 

End-to-end visibility: the key to smarter contract packaging 

Having a clear understanding of your operations is crucial for making informed business decisions. We use advanced tools, including: 

  • IoT-enabled devices and sensors for real-time tracking 
  • Integrated warehouse and inventory management systems 
  • Business intelligence dashboards 

With these tools, you get a front-row seat to every step of the contract packaging process, from inventory management and labour allocation to production statuses and shipping schedules. This level of insight from the shop floor to the loading dock means no surprises, faster problem-solving and smoother workflows. We can track and optimize every aspect of your contract packaging operation and prevent potential bottlenecks.  

Metro Supply Chain’s experienced IT teams can seamlessly integrate these solutions with even the most complex enterprise resource planning (ERP) systems, ensuring that data flows efficiently and workflows are customized to suit your specific needs. This integration gives you a clearer picture of your cost structure and areas for improvement. 

Driving Efficiency and Sustainability in Supply Chains 

Sustainability is reshaping the packaging industry, sparking innovation and collaboration as companies look to reduce CO2 emissions and waste and embrace clean energy. With shifting consumer expectations and rising demand for eco-friendly products, there’s no better time to make the change to more sustainable packaging options. Some trending options include:   

  • Bioplastics: Made from renewable sources, these materials break down faster than traditional plastics 
  • Corrugated packaging: Highly recyclable and made from renewable materials 
  • Minimalist designs: Reducing waste through smaller, smarter packaging layouts 

At Metro Supply Chain, innovation and sustainability go hand in hand. We’re committed to finding smarter ways to serve businesses while minimizing environmental impact. Through automation and advanced technologies, we design, build and optimize supply chain operations to deliver both efficiency and sustainability for our customers. For example, our implementation of a box-on-demand solution reduced one client’s carbon footprint by 25% while significantly cutting down on waste. 

Partner with us to achieve your corporate sustainability goals through smart procurement, optimized packaging and efficient technology solutions tailored to your business needs. 

Tailored, scalable solutions for high-volume contract packaging needs 

Every business has unique packaging and supply chain requirements. We bring decades of experience in delivering flexible, turnkey contract packaging solutions with value-added services tailored to your needs, including: 

  • Procurement: We handle every aspect of procurement, from sourcing suppliers and negotiating contracts to acquiring packaging materials, ensuring that all necessary goods and services are obtained for your product's packaging needs.    
  • Custom packaging: Bring your brand to life with a bespoke packaging solution tailored to your unique brand identity. Our services include shrink-wrapping, barcoding, flow wrapping, relabelling, and creating specialized gift sets or promotional bundles. 
  • Kitting and assembly: Transform individual items into attractive product bundles or reshape existing products to stay ahead of shifting market trends. 
  • Inventory management: Our advanced warehousing and inventory tracking capabilities efficiently manage your stock levels, monitor expiration dates and ensure timely order fulfillment.  
  • Quality assurance: Rigorous quality control measures ensure your products meet the highest standards before they reach your customers.  
  • Logistics and distribution: We provide comprehensive services, managing the transportation, labelling and final delivery of your products to retailers, wholesalers or direct-to-consumer channels.  

Our services grow with your business, providing seamless support through every surge and shift in demand. From high-volume operations to custom solutions like price tagging, display-ready packaging, or wrapping, we craft tailored strategies that drive your success and align perfectly with your goals. 

Elevate Your Supply Chain with Metro Supply Chain’s Contract Packaging Solutions 

Contract packaging is more than just a support service—it’s a strategic tool to unlock efficiency, exceed customer expectations, and drive sustainable business growth. 

At Metro Supply Chain, we go beyond packaging. As a trusted leader in contract packaging and third-party logistics, we offer end-to-end solutions tailored to your needs. From custom packaging and inventory management to seamless distribution, we help simplify your operations while positioning your business for long-term success.  

Partner with us and focus on what you do best—innovating, growing, and delivering exceptional experiences. Let Metro Supply Chain empower your next chapter of growth. 

Contact us today to get started!