Co-Packer Workflows

A co-packer (or co-manufacturer) is a third-party that produces finished goods for you. Peasy supports the two most common arrangements: you ship raw materials to the co-packer, or the co-packer sources everything themselves. The setup is similar in both cases — the difference is whether your raw materials are tracked through the production run.

Add the Co-Packer as a Vendor

Either model starts the same way: add the co-packer as a vendor so you can purchase from them.

1. Go to Buy > Vendors.
2. Click + New Vendor.
3. Enter the co-packer's name and contact info.
4. Save.

If you also want to track inventory that's physically at the co-packer's facility (raw materials you've shipped, or finished goods waiting to ship to you), create a location for them too:

1. Go to Configure > Locations.
2. Click + New Location.
3. Name it after the co-packer (e.g., "Acme Co-Pack").

A co-packer location works like any other location — Peasy doesn't have a special "co-packer" location type. Treat it as a regular warehouse for transfer and inventory purposes.

Model 1: You Ship Raw Materials to the Co-Packer

Use this when you buy ingredients and packaging yourself and send them to the co-packer to assemble.

1. Build the Production Template

Set up a template that lists every raw material and packaging component the co-packer uses, plus the finished good as the output. This is what tells Peasy how much to deduct.

2. Transfer Raw Materials to the Co-Packer's Location

If you set up a co-packer location, create a transfer order to move the raw materials from your warehouse to the co-packer's location when you ship them. Now your inventory shows what's physically at the co-packer.

3. Create a Work Order at the Co-Packer's Location

When you're ready to schedule the run, create a work order from the template. Set the Location to the co-packer's location so the deductions and additions both happen there.

You can also use the Co-Manufacturer Cost Basis field on the template to capture the labor cost the co-packer charges you per unit or per batch. See Co-Manufacturer Cost Basis.

4. Complete the Work Order When Finished Goods Arrive

When the co-packer ships you finished goods, mark the work order Complete. This deducts the raw materials from the co-packer's location and adds the finished goods.

If you want the finished goods at your warehouse instead of the co-packer location, follow the work order completion with a transfer back, or set the work order's Output Location to your warehouse before completing.

5. Capture the Co-Packer's Invoice as a Bill

When the invoice arrives, log it as a bill against the co-packer vendor. This keeps your spend tracked and lets you sync to QuickBooks if you're connected.

Model 2: The Co-Packer Sources All Materials

Use this when the co-packer buys their own ingredients and packaging — you only see the finished good. Peasy treats this much like buying any other finished good.

1. Build a Co-Manufacturer Template

Create a template for the finished good and use the Co-Manufacturer Cost Basis field to record what the co-packer charges per unit (or per batch). You can leave the inputs list empty since you don't track the co-packer's own materials.

2. Add to Cart and Send a PO

When you create a work order from a co-manufacturer template, the dialog's primary button changes to Add to Cart. Peasy adds the make-item to your shared cart at the co-packer's price so you can send it on a purchase order. See Co-Manufacturer Templates Add to Cart.

3. Receive Finished Goods Against the PO

When the shipment arrives, receive the PO to add the finished goods to inventory. Enter a finished-goods lot code at receive time so you keep traceability.

4. Capture the Bill

Log the co-packer's invoice as a bill. Same pattern as Model 1.

Lot Traceability Through a Co-Packer

Both models preserve lot tracking:

• Model 1 — When you complete the work order, Peasy records which raw-material lots were consumed and ties them to the finished-goods lot. You retain full forward and backward traceability.
• Model 2 — Lot tracking starts at the receive step. The co-packer's internal materials aren't tracked in Peasy, but the finished-goods lot you assign at receive time gives you traceability from there forward.

Ask your co-packer to print or label finished goods with the lot code you assign — that way the lot in Peasy matches the lot on the case.

Good to Know

• You don't need a co-packer location. If you don't care about tracking what's physically at the co-packer's facility, skip the location and just use your own warehouse for the work order. The finished goods will appear there when the work order completes.
• Templates are reusable across co-packers. If two co-packers make the same product, you can use the same template and pick a different vendor at PO time.
• Cost rolls into COGS. Toggle Include in COGS on the template's co-manufacturer cost field if you want that labor cost to flow into your unit cost calculation. See COGS.

Related

• Creating Templates — Including the Co-Manufacturer Cost Basis field
• Managing Work Orders — Completing co-manufacturer work orders
• Lot Tracking — Forward and backward traceability
• Locations — Set up a location for the co-packer
• Managing Bills — Capture the co-packer's invoice