original design manufacturing packaging
Original Design Manufacturing

Why Vertical Integration Matters in a Packaging Partner

Vertical Integration is Key to a Reliable and Innovative Packaging Supplier

Many packaging companies adopt varying degrees of vertical integration, but it is not universal. Larger, established packaging companies are more likely to be vertically integrated, the benefits of which help enhance production consistency, quality, reduce costs, and increase flexibility.

While smaller or specialized packaging companies may focus primarily on specific services or products, they must also rely on external suppliers for raw materials or certain manufacturing steps. This means increased vulnerabilities, higher costs, and less agility in bringing products to market.

Whether you’re looking for packaging for your own consumer goods (CPG) or you’re an original design manufacturer (ODM), vertical integration is important in a packaging supplier for several key reasons:

1. Supply Chain Stability: Control over multiple stages of production reduces dependency on external suppliers, minimizing disruptions and ensuring consistent supply.

2. Cost Savings: Vertical integration can lower costs by eliminating markups from third-party suppliers and achieving economies of scale.

3. Quality Control: Direct oversight of the entire process ensures higher quality standards and consistent product performance.

4. Faster Lead Times: In-house production allows for quicker response to CPG and ODM needs, reducing lead times and increasing flexibility.

5. Customization and Innovation: Greater control enables tailored packaging solutions and faster implementation of innovative designs, meeting specific ODM requirements.

6. Competitive Advantage: Being vertically integrated can differentiate the supplier in the market, offering better pricing, reliability, and product customization.

7. Intellectual Property Security: Control over the entire packaging process helps protect proprietary designs and innovations from external risks.

At Sealed Air we are one of the world’s largest, most integrated packaging suppliers. We manage multiple stages of our supply chain, including the manufacture of packaging materials such as Bubble Wrap®, Cryovac® films and trays, foam, paper, and other packaging solutions, as well as global research and development, converting, production, and distribution. When you’re ready to take your packaging to the next level, contact us.