What is Private Label Manufacturing?

April 2, 2025

By: Tiffany Hindman

With private label manufacturing, products are made by third parties and are packaged and sold under a specific retailer's brand name. This allows businesses to offer a vast selection of products with no investment in the manufacturing process.

How Does Private Label Manufacturing Work?

Companies that manufactured the product are not acknowledged for their part in the process. These products are sold how the distributor sees fit; this can be individually or as components of other products.

Advantages

Private label manufacturing offers several key benefits for businesses:

  • Cost Savings
  • Flexibility and Scalability
  • Focus on Branding and Marketing

How Strabo Can Assist With Private Label Manufacturing

Strabo Partners offers a comprehensive solution for private label manufacturers through our advanced 3PL software. By leveraging the capabilities of Microsoft Dynamics 365, Strabo Partners provides robust tools for managing:

  • Inventory Ownership
  • Automatic Billing for Transactions
  • Detailed Historical Tracking

Our software ensures consistent product quality with:

  • Advanced Quality Control Modules
  • Allowing Businesses to Set Standards
  • Perform Inspections
  • Manage Non-conformances

Additionally, Strabo Partners' solutions include features like:

  • Consignment Inventory
  • Ownership Changes
  • Costing
  • Inventory Settlement

Conclusion

Private label manufacturing is an effective business strategy when looking to expand product offerings without incurring manufacturing costs. By leveraging the resources of specialized manufacturers, businesses can save on production costs, scale their product lines, and focus on branding and marketing.

Interested in learning more about how Strabo Partners can be your implementation partner? Contact us today!