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Create Multiple Scenarios for Food Production


You may consider obtaining pricing for multiple scenarios.  For example:


1. The co-packer develops the FOB manufacturing cost handle everything else, e.g. purchasing all materials and delivering them on a truck to their plant based on their evaluation of your product...ask them to break out all the detail and losses.


2. They quote on a finished case price based on their providing all services e.g. purchasing, etc. again get all the detail.

Packer / Co-Packer


Questions to Ask a Co-Packer


1. Will you or the co-packer be purchasing and managing the ingredient and packaging inventories?


2. How predictable is the demand for your product and how far in advance will you be willing to "lock in" on the production schedule?


3. Does your packaging material run on their machinery?


4. Does the co-packer already own the equipment and can it be used as is?  Will the co-packer have to re-tool for your product?


5. What raw material, in-process and finished product analysis do you require?


6. How will the co-packer’s employees be trained on the sensory standards for pass/fail of the product?  Provide the co-packer with all finished product specifications, including pictures, palletization, coding, etc.


7. How will you handle "emergency" product demands and does the co-packer have machine/personnel resources to handle the production and at what cost?


9. All manufacturing has some waste.  Make sure that waste is factored into the ordering of packaging, labels, etc.

10. Will the co-packer design, order, inventory and otherwise manage labels for your White Label / Private Label product?