“Most OEM companies don’t realize that contract packaging firms like Fapco can help brand customer loyalty and increase profits. We can help OEMs by strategically reducing internal costs, improving the supply chain flow of these accessory parts and help create new profit centers that many manufacturers are too burdened to deal with,” states Fapco President, Larry Gardiner.
From spark plugs to grill accessories, to ATV equipment add-ons or marine outboard motor oil, savvy OEM manufactures know that supporting the brand of their equipment with accessories and parts after the sale increases customer loyalty and increases profits. But many OEMs don’t understand that using a contract packager to warehouse, package and fulfill a wide variety of parts to loyal OEM end users can reduce internal packaging and fulfillment costs.
Scott Sloniker, Operations Manager for Fapco, a major, full-service contract packager based in the Midwest, uses the lowly spark plug as the perfect example for branding and customer loyalty. Fapco warehouses, packages and ships millions of spark plugs each year.
“We’re still doing a lot of spark plugs for OEM manufacturers. Very few companies actually make spark plugs,” says Sloniker. “There’s probably only two or three spark plug manufacturers in North America. Yet everyone wants to have the brand of plug in his or her car, ATV or outboard that is specified in the service manual. But whether it’s a Smith Brothers plug or big box store maintenance plug, it’s the same manufacturer’s plug inside that box. The OEM was just smart enough to capitalize on this opportunity to brand themselves with loyal customers and take advantage of the profits that come along with this sale.”
Sloniker illuminated the wide range of OEM manufacturers that Fapco can help with full-service contract packaging.
“There’s an incredible array of manufacturer accessories we can help with warehousing, packaging and parts fulfillment services,” he says. “We’re talking about bikes, lawn tractors, boats, recreational vehicles, outdoor grills, hot tubs, motorcycles, chain saws, any type of OEM product maker that builds a loyal customer base can make the decision to take this accessory business from under their roof to under ours.”
Fapco cut its teeth on the parts branding business with decades of consolidation, packaging, kitting and warehousing distribution of parts and accessories for some of the largest names in the automotive business. The high standards, information technology and quality systems are all in place to handle almost any OEM equipment operation.
“Our automotive work over the years has made us a better supplier of contract packaging,” says Sloniker. “We are now exploring new avenues of OEM packaging and branding for other industries. We can put your brand on it here. The customer is buying the component anyway, why not have us shrink wrap it, box it or card it into a marketing tool–a wrapper or a box that tells people you have branded parts. So it really is about branding with specific parts and service. And again, the parts and service business tends to be pretty profitable. It’s an arena in which the more market share you can capture from knock-off parts manufacturers, means an avenue for new profits for many manufacturers.”
Let’s get started today with one of our packaging solutions such as our cold seal packaging or contract packaging.