Written by: Carl Melville Managing Partner, TMG
Contract Manufacturing & Co-Packing Glossary
Third-Party Logistics providers offer outsourced logistics and supply chain management services, including transportation, warehousing, and inventory management.
An ASN is a digital document sent by a supplier to a buyer in advance of a shipment. It outlines delivery date, contents, and tracking details to streamline receiving and inventory processes.
A substance that can cause an allergic reaction. In food packaging, allergens must be highlighted on labels to inform consumers.
A process where beverages are sterilized and packaged in a sterile environment to prevent contamination and extend shelf life without preservatives.
A sterilized packaging process where both food and container are sterilized separately and sealed in a sterile environment. Common for shelf-stable foods like dairy alternatives and juices.
A method of dispensing dry, powdered, or granular products into packaging using a rotating screw-like device.
A packaging process involving placing products into bags or pouches and sealing them.
A unique identifier assigned to a specific production run of a product for traceability, quality assurance, and recall management.
A packaging method forming a plastic cavity to hold individual units and sealing it to a backing. Provides visibility, tamper evidence, and portion control. Used widely in pharmaceuticals and single-serve foods.
The process of filling and sealing liquid products into bottles.
Grouping multiple products together into a single package, often for promotional purposes.
Compound Annual Growth Rate, measuring the annual growth rate of an investment or business over a specific period.
A preservation method sealing food in airtight containers and heating them to kill bacteria and extend shelf life.
Capital Expenditure, money spent acquiring, maintaining, or improving fixed assets like buildings or equipment.
A machine used to form and fill cartons with products.
The process of placing products into cartons and sealing them.
Placing primary packages into secondary packaging like cases for shipping and distribution.
A document verifying that a product or ingredient meets agreed-upon specifications, often including lab test results on safety, composition, and quality.
Documentation tracking the handling and ownership of a product from its origin to final destination.
The percentage of customers or subscribers discontinuing service with a company over a set period.
An economic model focusing on minimizing waste and resource consumption by reusing and recycling materials.
Packaging made from a single plastic piece that folds and locks together, often used for retail products.
An automated method to clean internal surfaces of equipment without disassembly, critical for food safety and production efficiency.
Large, multi-unit packaging designed for sale in warehouse clubs.
Collaborative robots designed to work safely alongside human workers without physical barriers.
The field focusing on collaborative robotics applications in manufacturing and logistics.
A kitchen designed for large-scale food production meeting commercial foodservice regulations.
Bringing a new product or service to market from concept to distribution.
An assessment ensuring a company or product meets industry standards, regulations, or best practices.
Packaging made from materials that break down naturally in compost environments.
Outsourcing production to a third-party manufacturer to reduce costs, access expertise, and scale production efficiently.
Outsourcing the packaging process to a third party specializing in filling, sealing, and labeling.
A company contracted to produce goods on behalf of a brand using its own equipment and facilities.
A service provider that packages products for brands and often offers filling, sealing, labeling, and turnkey solutions.
Commitment by companies to operate ethically, sustainably, and with positive societal impact.
Consumer Packaged Goods, everyday-use products like food, beverages, and personal care items.
FDA-enforced practices ensuring food is produced safely and under controlled conditions.
The process of cutting products like chips or cookies into specific shapes before baking.
A facility where goods are stored, sorted, and shipped to customers or retail locations.
Earnings Before Interest, Taxes, Depreciation, and Amortization, measuring a company’s core profitability excluding non-operational expenses.
A relatively new brand gaining traction and consumer recognition with growth potential.
The creation and placement of promotional displays at the ends of retail store aisles to boost product visibility.
Enterprise Resource Planning software integrating core business processes like finance, supply chain, procurement, and manufacturing.
Ensuring materials and services are obtained responsibly, respecting human rights, fair labor practices, and environmental standards.
A food processing method pushing materials through a shaped die under heat and pressure to create specific product forms like snacks and cereals.
The date beyond which a product is no longer guaranteed to remain safe or meet quality standards.
The net amount of product inside a package, excluding packaging material.
Packaging made of non-rigid materials like films, foils, and laminates that adapt to the product’s shape.
Wrapping a continuous sheet of film around a product and sealing it at both ends.
Fast-Moving Consumer Goods sold quickly and at low cost, like packaged foods, toiletries, and household items.
U.S. agency regulating food safety, labeling, and manufacturing practices.
The total cost of a product including manufacturing, shipping, duties, and taxes upon arrival at destination.
A kitchen facility preparing food exclusively for delivery without a traditional dine-in restaurant.
Operational guidelines ensuring food products are produced safely and consistently, covering facility hygiene, processes, and documentation.
Distribution channel consisting of supermarkets and grocery stores.
An organization that consolidates buying power across companies to negotiate better supplier terms and pricing.
Hazard Analysis and Critical Control Points, a preventive food safety system identifying potential hazards and critical control points during production.
A machine that applies heat to shrink a plastic film tightly around a packaged product.
A machine forming, filling, and sealing packages horizontally, used for items like bars and small snacks.
Forming, filling, and sealing pouches horizontally, often used for confectionery and snack products.
A packaging method where liquids are filled into containers at high temperatures to ensure product safety without refrigeration.
The process of filling beverages hot into containers to kill microbes and extend shelf life without preservatives.
A brand owned and sold by a retailer, often positioned as a cost-effective alternative to national brands.
A required list of ingredients in a food product, ordered by weight, regulated for consumer transparency.
Add-ins like nuts, chocolate chips, or dried fruits incorporated into products to enhance texture, flavor, or appearance.
An inventory strategy where materials arrive exactly when needed for production, reducing storage costs.
The assembly of multiple components into a single package or kit for easier customer use or promotional purposes.
Certification that food complies with Jewish dietary laws, providing assurances around ingredient sourcing and handling.
Leadership in Energy and Environmental Design certification recognizing buildings with sustainable, environmentally friendly construction and operation.
The time between placing an order and receiving the product, critical for managing production and launch schedules.
A limited production run testing formulation, packaging, and production scalability before full-scale launch.
Producing goods that are customized to individual specifications without sacrificing cost or production speed advantages.
Established brands with a stable customer base and a long presence in the market.
Certification for businesses at least 51% owned, operated, and controlled by minority group members.
The lowest quantity of product that a co-packer or supplier will accept in a production run.
Packaging technology that alters the air inside the package to prolong product freshness.
A widely recognized brand distributed across a country or region.
Products derived from food sources offering health benefits beyond basic nutrition, including supplements and functional foods.
Label showing calorie, nutrient, and serving size information, regulated by FDA requirements.
A sales and marketing strategy providing a seamless customer experience across physical and digital platforms.
Products grown and processed without synthetic fertilizers, GMOs, or irradiation.
Official certification verifying compliance with organic agricultural and processing standards.
Business growth achieved internally through increased sales and operational improvements rather than mergers or acquisitions.
Over-the-counter pharmaceutical products available without a prescription.
Applying an outer layer of film or paper around a product for protection, tamper evidence, or marketing.
The arrangement of products on a pallet to maximize space and minimize damage during transportation.
Heating food products to a specific temperature to kill harmful bacteria without compromising taste or texture.
Using PET (polyethylene terephthalate) plastic to manufacture beverage containers that are lightweight and recyclable.
Retail displays intended to promote products at key shopping points like checkout areas.
A strategy delaying final manufacturing or packaging until after customer orders are received to allow customization.
Filling and sealing flexible pouches with product for distribution and retail.
Packaging that directly contains and protects the product, ensuring its integrity and usability.
Capital investment into companies that are not publicly traded, often used to fund expansions or operational improvements.
Products manufactured by one company but sold under another company’s branding, often as store brands.
An expert responsible for validating food manufacturing processes for safety and regulatory compliance.
An initial sample used to test and validate product design and functionality before full-scale production.
A proactive system ensuring that food products meet safety and quality standards through systematic checks during production.
Testing finished products to verify that they meet required standards for consistency, safety, and labeling.
Using a range of colors to differentiate flavors, sizes, or varieties within a product line.
A brand primarily recognized within a specific geographic area.
Departments or activities focused on innovating, testing, and improving products and production processes.
Packaging designed for easy shelf placement, reducing retailer labor and improving merchandising.
Packaging made from hard, inflexible materials like glass, metal, or rigid plastic.
Subscription-based or pay-per-use access to robotics technology without upfront investment.
Small, flexible, single-use packaging often used for powders, condiments, and personal care items.
Packaging that groups primary packages together for distribution and merchandising.
The time a product remains safe and meets quality standards under recommended storage conditions.
Packaging designed to go straight onto store shelves with minimal additional handling.
A protective plastic film that tightens around products when heat is applied.
A certification program verifying that a company’s food safety and quality management systems meet international standards.
A flexible pouch that can stand upright and features resealable closures to maintain product freshness.
Long, slim pouches designed for single servings of powders, liquids, or granules.
Products owned and marketed by retailers as private labels or house brands.
Flexible pouches that stand upright and feature resealable closures for freshness.
Practices focused on minimizing environmental impact during production while maintaining social and economic responsibility.
Outsourced service providers managing inventory storage, order fulfillment, and product shipping.
A manufacturing arrangement where a brand supplies ingredients and packaging, and the manufacturer provides production labor and equipment.
The fee charged for toll manufacturing services.
Open disclosure of business practices to stakeholders to build trust and ensure accountability.
A full-service model where manufacturers handle sourcing, production, quality control, and logistics for brands.
The barcode printed on products to facilitate tracking and checkout scanning in retail environments.
A controlled production batch used to verify that new formulations, equipment, or processes perform as intended.
Packaging designed with enhanced functionality, marketing appeal, or user convenience beyond basic containment.
Filling and sealing pouches vertically for products like liquids and granular materials.
A packaging machine forming, filling, and sealing packages vertically, common for snacks and pet food.
Storage facilities for raw materials and finished goods before distribution.
Certification for businesses at least 51% owned by women or minority individuals.
Software used to optimize warehouse operations like inventory tracking, picking, packing, and shipping.
A food safety technology detecting contaminants like metal, glass, or stones within packaged products.
The usable amount of product remaining after a manufacturing run, factoring in production loss.
A waste strategy aiming to divert 100% of operational waste away from landfills through recycling, composting, or energy recovery.
