Report Shows Continuing Interest in Outsourced Packaging Services

LAKELAND, Fla.—Manufacturers that already outsource secondary packaging services are planning on increasing their use of outsourcing over the next 12 to 18 months, according to a new study sponsored by 3PL Saddle Creek Corp.

The 2009 Secondary Packaging Outsourcing Report revealed that nearly half (41.1%) of the 500 survey respondents outsource some or all of their secondary packaging services. A “significant number” (34.6%) outsource 75% to 100% of their secondary packaging services.

A quarter of respondents (24.4%) who already outsource expect to increase their outsourcing of secondary packaging "somewhat" or "substantially." Roughly half (53.7%) expect their level of outsourcing to stay the same.

"Increased flexibility" (64.5%) and "reduced costs" (62.1%) are viewed as the top two benefits of outsourcing by respondents who currently outsource. Roughly a third of respondents who outsource feel it would be "valuable" or "very valuable" if their provider offered integrated logistics services such as warehousing, distribution, and transportation as part of the packaging service offering.

"Manufacturers are recognizing the value of outsourcing their secondary packaging services in order to move products to market as efficiently and cost-effectively as possible," says Robert Pericht, senior vice president of warehouse operations at Saddle Creek. "The research confirms what our customers have seen firsthand—a strategic decision to outsource can make a significant impact on supply chain efficiency."

For a copy of the 2009 Secondary Packaging Outsourcing Report, go to www.saddlecrk.com/pkg.

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