Co-Packing is Hard. We Made it Easier.

What once was a niche service has become a mainstream strategy for growth, allowing producers to monetize their operational expertise and excess capacity.

October 17, 2025

The beverage industry is no stranger to the art of reinvention. Just as tastes shift from one trend to the next, so do the business models that keep producers afloat. One of the most significant shifts in recent years has been the quiet explosion of contract production. What once was a niche service has become a mainstream strategy for growth, allowing producers to monetize their operational expertise and excess capacity.

But let’s be honest: co-packing isn't easy. It introduces a dizzying array of new inventory management, accounting processes and reporting workflows. Manual processes for tracking and reporting partner-owned inventory, planning production and managing partner billings are not just inefficient; they're magnets for costly errors and compliance headaches. When your team is drowning in spreadsheets and juggling disjointed systems, you’re not just wasting time—you’re leaving profit on the table.

What if you could eliminate the chaos? At Encompass, we asked ourselves that same question. We saw producers grappling with these challenges and knew there had to be a better way.

Introducing Encompass’s Contract Production solution

We’re excited to announce the launch of our Contract Production solution within Encompass Production Cloud! This isn't just another feature; it's a prescribed configuration designed to bring clarity, control, and profitability to your co-packing operations. We built this to provide a streamlined, repeatable, and fully supported way to manage the unique demands of contract production, from initial deposit to final report.

Effortless and Precise Inventory Management

Trust is the currency of contract production. Your partners rely on you to manage their inventory with precision, and inaccurate counts can quickly damage that relationship. Manual tracking is prone to errors that lead to missed deadlines and frustrated partners.

Our solution offers a prescribed workflow for tracking, managing, and reporting on partner-owned inventory. With real-time visibility, you can prioritize precision, simplify reporting, and build unshakable confidence in your data. Deliver the transparency your partners expect and solidify your reputation as a reliable supplier. 

Seamless Financial Workflows for Clarity and Compliance

One of the biggest pain points for co-packers is managing the financial side of the house. Manually creating and reconciling down payment invoices is a time-consuming chore that drains your accounting team's resources. Our new solution streamlines these accounting workflows, freeing up your team to focus on more strategic, high-impact tasks. By standardizing the process for down payments, you not only improve cash flow but also gain a clearer financial picture of your contract pipeline, revenue, and margins.

Additionally, contract production adds a layer of complexity, particularly around revenue recognition. Revenue is often recognized when a production order is complete, not when the final product ships. The Contract Production solution simplifies this process with a tailored workflow that ensures revenue is recognized at the right time and without losing inventory visibility, so you can operate with confidence and stay audit-ready.

Driving Teamwork with Unified Job Visibility and Collaboration

How many systems and spreadsheets does it take to understand the status or profitability of a single job? When information is siloed, collaboration breaks down, and teams spend more time chasing answers than driving progress. Contract Production within Production Cloud acts as a single, unified source of truth for your entire operation, providing unparalleled visibility into the job lifecycle. That way, all teams know exactly when it’s time to take action on their specific tasks. 

But the connectivity doesn’t stop there. With access to our Distributor Ordering Portal, you can extend collaboration across the entire customer chain, enabling seamless order communication from your production partners or directly from their wholesalers. Our integrated system ensures real-time updates on inventory and job progress, empowering procurement and production teams to work in lockstep. And it gives downstream customers the transparency and efficiency they need to streamline their operations. A win-win, for everyone.

Modernize Your Co-Packing Operations

Contract production represents a massive opportunity for growth, but only for those equipped to handle its complexities. The Encompass Contract Production solution was built to turn those challenges into strengths. By streamlining your accounting and inventory processes, you can eliminate manual work, reduce errors, and achieve the true profitability of your co-packing business.

This solution is a core part of our vision to help beverage producers manage any and all forms of production. It’s more than a tool—it's your path to smarter, more efficient, and more profitable growth.

If you’re an existing customer, reach out to your account manager. If you’re new to Encompass, contact us today to learn more about how Contract Production in Production Cloud can transform your operations.

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