You order and pay for the raw materials, often having them shipped directly to the co-packer, and then place an order for a set amount of finished goods (which may or may not use up all of these raw materials).
On the positive side, working with a co-packer eliminates the need to build and run your own manufacturing facility. But this does not come without cost, as it forces you to give up a certain amount of visibility and control, which can make planning difficult.
Luckily there is a solution: Set things up so that you are paralleling your co-packer’s inventory levels and production inside your own Fishbowl installation. This way you can easily see what raw materials the co-packer is storing on your behalf, your scrap rates, your finished goods inventory, and more. This visibility not only gives you the data you need for planning purposes, it also creates accountability.
Here’s how to use Fishbowl to monitor co-packers and other contract manufacturers
Create all of the following:
In a co-packer environment you are typically purchasing materials and having them shipped to the co-packer. To track and manage this you need to:
In creating the finished product, the following tasks do not have to be done in this exact sequence, but all have to be done:
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