Inventory glossary
What is Co-packer?
A co-packer is a third party company that packages or assembles a product for a brand, often also handling some manufacturing steps, under the brand's own label.
Small stores use co-packers to produce goods at a scale they could not manage alone. This matters because co-packers often set minimum order quantities, case pack sizes, and lead times that are longer than a normal supplier's, since they schedule production runs across multiple clients.
Treat a co-packer like any other supplier in your reorder planning, but build in extra buffer time. If your co-packer needs four weeks notice plus two weeks to produce, your order-by date needs to account for the full six weeks, not just shipping time.
Example
A candle brand sells 300 units a month of its signature scent. Their co-packer melts, pours, and labels the candles, with a minimum order quantity of 600 units and a six week lead time. The store owner needs to place the order when stock on hand plus incoming covers less than six weeks of sales, or roughly 450 units, so production finishes before they run out.
Common mistakes
- Confusing co-packer lead time with simple shipping lead time and ordering too late.
- Ordering below the co-packer's minimum order quantity and getting the order rejected or delayed.
- Not accounting for co-packer production scheduling, which can push a run back if ordered outside their cycle.
Co-packer and SteadyShelf
SteadyShelf lets you set a co-packer's full lead time and case pack size so order-by dates and suggested quantities match how they actually produce and ship.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Lead time · Minimum order quantity · Case pack · Contract manufacturer · Supplier lead time variability
FAQ
Is a co-packer the same as a contract manufacturer?
They overlap. A co-packer typically focuses on packaging and assembly of an existing formula or product, while a contract manufacturer may also handle more of the production process, like mixing or building the item from raw materials.
Why do co-packers usually require higher minimum order quantities?
They run production lines for multiple brands and need each run to be large enough to justify setup time and machine changeovers, so small orders are often not cost effective for them to accept.
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