Reduce Packaging Costs
Reduce Packaging Costs
Reducing packaging costs can help your business be more competitive which strengthens your market position. Many companies feel that bidding their packaging materials between several vendors will help achieve material price reductions. While that can be a successful approach there are inherent risk to the continuity of the supply chain. Changes in the quality of the packaging material and disruptions to the level of service can both quickly offset any material reductions. The true cost of packaging includes your process and labor costs which often presents far greater opportunity to reduce overall costs than focusing on materials alone. Conducting a value analysis of your current process and materials helps provide clarity to the real costs of packaging and impact to the operation.
There are a multitude of innovations to materials and a small product change can often have a major beneficial cost impact. Engineered films continue to down gauge without compromising performance. Converting to a cushioned bubble mailer from a small carton is another cost savings example. In almost every packaging product category there are various “grades” of materials that each address the circumstances of your application. New material recommendations and samples are provided at no charge and we partner throughout the testing and evaluation process to insure success.
Increasing your purchasing quantity may have a positive impact to material pricing. Since storage space is normally limited, PakSouth will warehouse bulk quantity materials so you can enjoy quantity discounts. Not only is your packaging distributor an extension of your warehouse, we are sourcing experts in the packaging industry. We purchase or produce in bulk for many customers which helps each customer leverage lower pricing.
After first evaluating the type of materials and new material alternatives then the focus turns to the process itself. We will uncover if too much material is being utilized and develop methods to control material usage to help reduce consumption. Taking the packaging operation from 6 packers down to 3 for example is a tremendous operational savings and can be achieved through a systems approach to packaging. Whether its labor or materials uncovering significant cost savings is truly exciting!