TeaSquares first fully printed packaging was through an international supplier, and led to 20,000 pouches being wasted. Choosing the right packaging supplier is a critical decision for CPG founders. At some point you’ll face the dilemma of choosing between domestic and international suppliers. Here’s what you should consider when making the decision.

As mentioned, I worked with an international supplier for the first fully printed TeaSquares pouch run. The quality of the product was great, but I wasn’t a packaging expert, and we made a lot of mistakes because we didn’t know the questions to ask. We had design flaws that we didn’t catch, produced a large batch during our first run to compensate for the shipping costs, and ended with delayed shipping.

We ended up needing to change our packaging before using that inventory, leading us to have to dispose of 20,000 bags, all because we didn’t know what we were doing.

So when you do your first packaging run, work with a hands on packaging manufacturer like Josh Packaging, a family-owned business with over 30 years of experience. They go beyond the role of a typical contract manufacturing company, acting as packaging consultants committed to creating a great product for you. I talked with them to explore the key differences between domestic suppliers like Josh Packaging and overseas suppliers, helping you make an informed decision for your business.

1. Lead Time Efficiency

Lead times are crucial when it comes to packaging sourcing. Domestic suppliers often offer significantly shorter lead times, typically in the range of 2-3 weeks. This efficiency allows brands to respond quickly to new orders, launch new products, and packaging changes. Shorter lead times also mean companies can maintain lower inventory levels, reducing storage costs and freeing up capital for other investments.

International suppliers, on the other hand, often require lead times of 15-16 weeks due to longer production processes, customs clearance, and shipping times. This extended timeline can pose a challenge for companies needing to quickly replenish stock or introduce new packaging. Production bottlenecks may arise, which can disrupt product launches and limit a brand’s agility in a fast-paced market.

When deciding on a supplier, consider the flexibility and responsiveness your business requires. If speed-to-market is a key priority, domestic sourcing might be the better option.

2. Customer Support and Communication

Effective customer support and clear communication are essential elements of a successful packaging partnership. Domestic suppliers typically offer more accessible customer service, with the ability for in-person meetings, phone support, and quicker response times due to the same time zone. This transparency and ease of communication help brands address any issues promptly, reducing potential delays in production or troubleshooting.

In contrast, international suppliers might present challenges such as language barriers, time zone differences, and slower response times. These obstacles can complicate the process of making changes, resolving quality issues, or rolling out new packaging designs. For brands that require a high level of service and collaboration, domestic suppliers often provide a more hands-on experience.

3. Value-Added Services

Some packaging suppliers, especially domestic ones, provide value-added services that can be a game-changer for brands. These services might include packaging design assistance, free storage for finished goods, quick sampling, and small minimum order quantities (MOQs). Having access to such services can significantly streamline operations and reduce costs.

Overseas suppliers may not always offer these additional services, and brands might need to incur extra expenses for design work, sample shipping, or warehousing. However, international suppliers can sometimes compensate for these limitations by offering lower production costs, which may be a priority for certain businesses. Evaluating your company’s specific needs, such as design support or flexible storage options, will help determine which supplier best aligns with your overall strategy.

4. Quality and Sustainability

Quality assurance is another critical factor in packaging sourcing. Domestic suppliers often invest in the latest machinery, technologies, and materials to ensure high-quality packaging that meets industry standards. Domestic suppliers like Josh Packaging can also advise on how to make your packaging more sustainable by reducing packaging materials or recyclable by using one material type.

International suppliers, while sometimes more affordable, may have varying quality standards and might not always be able to advise you on how to increase the sustainable design of your packaging. However, some overseas manufacturers specialize in specific types of packaging materials and can offer unique solutions that might not be as readily available domestically. It’s essential to vet potential suppliers and weigh their quality and sustainability practices against your brand’s values and customer expectations.

Deciding between domestic and international packaging sourcing is a multifaceted decision that depends on your brand’s priorities, budget, and values. Domestic suppliers provide advantages such as shorter lead times and robust customer support. On the other hand, international suppliers might offer cost savings and access to specialized materials.

Ultimately, the best choice depends on what aligns with your business strategy. Consider factors such as speed-to-market, economic and ethical implications, the level of support required, added services, quality, and sustainability.

If you’re looking for a new domestic packaging supplier check out Josh Packaging. They can help you choose the best packaging format and materials for your products and ensure a quick turn around time.