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Digitalization as a defensive and proactive strategy
Digitalization offers a path forward. For valueadded 3PLs, implementing software purposebuilt for the unique needs of co-packing enables not only operational efficiency, but safety by design. Such specialized software provides granular, real-time visibility into every element of the packing process. From inventory through production and finished goods output, every step can be logged, timestamped, and linked to specific work orders and customer SKUs.
In contrast to disconnected ERP modules or general-purpose warehouse management tools, purpose-built co-pack software captures the nuances of these operations: short-run complexity, frequent changeovers, labor variability, and manual workflows.
By embedding traceability at the process level, co-pack software reduces the chance of human error, automates compliance documentation, and enables instant retrieval of audit trails.
This capability becomes invaluable when responding to potential safety incidents. Instead of sifting through paper logs or cross-referencing disparate systems, contract packers can access centralized digital records that show exactly what materials were used, when, and by whom- supporting both proactive quality assurance and reactive recall response.
Operational benefits beyond compliance
While safety and recall readiness are primary drivers, digitalization brings additional operational value to 3PLs. For example, integrated quality control checks can flag anomalies in real-time, reducing the risk of defective products reaching the shelf. Digital job tracking allows supervisors to pinpoint bottlenecks and optimize labor allocation, which is particularly crucial in labor-intensive co-packing environments.
The experience of global logistics provider Kuehne + Nagel and its Netherlands facility illustrates this point. Relying on paper-based systems led to long traceability response times- taking hours instead of minutes- and frequent manual data entry errors. Real-time information became essential to manage complex workflows, improve reporting, and raise service quality. Their manual system could no longer meet the speed, accuracy, and complexity required.
By investing in Nulogy’ s co-pack software, Kuehne + Nagel gained real-time production visibility over its shop floor, enabling faster decision-making and better alignment with client expectations. The system’ s granularity allowed them to manage multiple concurrent jobs while maintaining strict quality control and compliance. This improved responsiveness and service quality, while significantly enhancing traceability and recall readiness which is key to ensuring safety and trust in a demanding FMCG environment. Notably, they reduced time spent on order preparation, inventory tracking, and quality checks, cut response times to RFQs by 50 percent, and accelerated recall response times and data transparency by 50 percent.
Digital safety is the new standard
Brands are becoming increasingly risk-averse, and for good reason. The consequences of food or consumer product safety failures have never been more immediate or far-reaching, especially in an age of viral headlines and empowered consumers. As a result, siloed reporting or delayed visibility from 3PL partners is no longer acceptable. Seamless transparency, real-time traceability, and assurance that safety protocols are embedded into daily operations are now expected.
For 3PLs, meeting these expectations is not only a matter of retaining business: it’ s about building trust and long-term success. Third-party partners are strategically vital to maintaining a brand’ s reputation, and
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