Emma Verkaik, CEO of the BCMPA – The Association for Contract Manufacturing, Packing, Fulfilment & Logistics – explains how the Association’s UK-based members can help confectionery manufacturers mitigate challenges in confectionery manufacturing and co-packing.
Rising prices of key ingredients and increasing production costs continue to present challenges for confectionery manufacturers. One solution to these ongoing cost increases is the implementation of lean manufacturing techniques, which puts a focus on eliminating waste and enhancing efficiency to ensure that every step of the production process adds value without incurring unnecessary costs.
Key principles relating to lean manufacturing include:
Value stream mapping: Identifying and mapping activities involved in creating value in everything from raw materials to finished product.
Eliminating waste: Identifying and eliminating all forms of waste, including over-production, waiting time, excess inventory, defects, and unnecessary motion.
Continuous improvement: Embracing a culture of continuous improvement and involving all employees in identifying and solving problems.
Just-in-time (JIT) manufacturing: Producing goods only when they are needed, reducing inventory and waste.
Respect for people: This includes empowering employees and recognising their contributions to the improvement process.
Lean manufacturing is one area where outsourcing businesses who specialise in co-packing, manufacturing, and logistics can help confectionery manufacturers deliver results. Using lean manufacturing principles BCMPA members enable brands to focus on their business, and escape many of the day-to-day operational issues by taking advantage of the range of services offered – from new product development, regulatory, production, ingredients sourcing, bulk buying, inventory management, automation, digitalisation, customer interface and end-to-end delivery.
BCMPA member Marsden Packaging, for example, has implemented specialised software systems that track production efficiency and detect trends in equipment breakdowns, allowing the company to proactively address inefficiencies and improve throughput. Such real-time visibility enables Marsden and its customers to make more informed decisions about production and packaging, helping to manage costs while improving product quality. “We use a software package written specifically for co-packers, which enables us to be extremely efficient in all that we do,” said Michael Briggs, Managing Director at Marsden Packaging. “If you can manufacture efficiently, you can reduce waste, and this delivers financial savings along with improvements with waste targets.”
Another BCMPA member, Mailway, has been an advocate of lean manufacturing for over a decade. The company’s approach is centred around collaboration with clients to ensure that production processes are streamlined and that potential value improvements are continuously identified. “Our most recent efforts have been on putting the right systems in place to make better informed decisions, as part of a new ERP and WMS implementation,” commented Sales Director Neil Humphrey. “We have also taken new procurement expertise onboard which is driving our sourcing strategy from a more centralised perspective.”
Meeting demand for innovation
Effectively managing costs should never come at the expense of new product development (NPD). The expertise and experience of the specialist contract packers and manufacturers in the BCMPA can help bridge the gap between maintaining NPD and keeping costs under control.
SGL Co-Packing, highlighted the importance of navigating the challenges of balancing cost and innovation. Its understanding of packaging trends and material performance, allows it to support its confectionery clients in developing products that stand out in an increasingly competitive market. Michael Barrett, General Manager at SGL Co-Packing, explained more: “We leverage in-house expertise and packaging sector contacts to offer a fast NPD service, helping clients quickly respond to retailer opportunities. For larger clients, we reduce time to market while maintaining product integrity, and for smaller clients, we provide scale advantages they wouldn’t have individually.”
For companies focused on confectionery gift packaging or limited-edition lines, innovation can be the key to unlocking new revenue streams. Marsden Packaging can offer tailored packaging solutions – whether for premium formats or eco-friendly packaging – and this has been instrumental in enabling brands to stay relevant and differentiate themselves on-shelf. “When we are included in NPD discussions for new products, our input enables customers to benefit from almost 50 years of co-packing knowledge and experience,” said Michael. “This enables them to make informed choices about their packaging.”
Sustainability trends
Innovation may still be the main driving force in the confectionery sector, but it has now been joined by a focus on sustainability, particularly when it comes to packaging. Outsourcing businesses can help to main this dual focus.
One of Mailway’s key roles is to help its clients choose more sustainable materials – such as compostable, recyclable, and biodegradable options – that still satisfy the functional and aesthetic requirements of packaging. “Our role is to advise and guide our customers on their sustainability journey, to provide them with sustainable options that work for them,” said Neil.
Similarly, BCMPA member, Lemonpath is making significant strides in sustainable packaging, using recycled materials, biodegradable plastics, and plant-based alternatives that meet both consumer and regulatory expectations. “Our minimalist packaging designs eliminate unnecessary layers, enhancing functionality while cutting costs. By collaborating closely with clients, we ensure packaging solutions align with both sustainability goals and premium quality standards,” explained Joanne Taylor, Commercial & Sales Director at Lemonpath.
Adapting to fluctuations
As well as raw material prices, the confectionery industry is often at the mercy of fluctuations in supply chains, which can create significant operational disruptions. Here, many third-party providers within the BCMPA will have the flexibility and experience to navigate these challenges efficiently, helping to ease the burden on confectionery manufacturers.
For example, Mailway’s implementation of a centralised procurement strategy has allowed it to better manage supply chain risks by fostering relationships with multiple suppliers. This helps to mitigate potential ingredient shortages and offers brands greater pricing stability, especially in the face of market volatility. “Where the relationship with the customer puts the onus on us (versus a pure ‘free issue model’), we ensure that the customer benefits from our close relationships with multiple suppliers in numerous material categories,” said Neil.
The use of advanced software solutions also means that it is possible to quickly highlight potential supply chain issues. This agility is crucial for maintaining production schedules and meeting consumer demand without unnecessary delays or increased costs. “Such software identifies and flags up any potential shortfalls in components, allowing us to ensure we have the necessary ones available to complete a project.” explained Michael of Marsden Packaging.
Leveraging automation
To keep pace with consumer demand and mitigate rising labour costs, automation is another key enabler of efficiency. BCMPA members are investing in the latest technologies – from robotics to advanced software platforms – to improve production output while keeping costs under control, and these are helping deliver faster, more cost-effective solutions.
Mailway has embraced low-code software platforms that enable real-time data capture and analysis. This can enhance operational decision-making and also provides management with actionable insights that drive continuous improvement. Additionally, the use of collaborative robots (cobots) – robots that are designed to work safely alongside human operators – has reduced the need for manual labour while improving overall line speed and safety. “We have invested in a number of projects over the years,” confirmed Neil. “Another recent example is the use of 3D printing to reduce tooling lead time and provide bespoke on-line parts to improve machine speeds.”
Lemonpath, meanwhile, is set to launch a paperless, real-time data solution that will provide clients with hourly updates on production status. This will enable proactive decision-making and will enhance efficiency, helping brands respond faster to market demands while keeping costs under control. “This digital transformation adds value for customers by offering real-time visibility and it also drives cost-effectiveness, reinforcing our commitment to innovation in contract packing,” pointed out Joanne Taylor.
Michael of SGL Co-Packing, acknowledges that there are challenges associated with achieving a return-on-investment in automation, given the fluctuations in volumes and the wide range of product formats they are asked to pack. “By exploring and investing in flexible automation solutions, we can stay competitive and meet the diverse needs of our customers, regardless of scale or complexity,” he said. “This approach allows us to adapt to varying demands while maintaining high efficiency and quality”.
The future
By embracing lean manufacturing principles, adopting cutting-edge automation technologies, and aligning with sustainability trends, third-party providers can offer the expertise and flexibility that confectionery brands need to stay competitive.
Whether this is mitigating the impact of rising raw material costs, maintaining innovation in product development, or improving supply chain efficiency, BCMPA members are at the forefront of delivering solutions that allow confectionery brands to adapt quickly.
In a constantly challenging environment, partnering with experienced contract manufacturers and packers is a strategic move that can help drive long-term success for confectionery manufacturers. As the industry continues to evolve, BCMPA members will remain integral to helping brands navigate the complexities of modern confectionery manufacturing and packing.
Editorial contact:
Editor: Kiran Grewal kgrewal@kennedys.co.uk
