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Packaging Principles

By 19th February 2014April 7th, 2022No Comments

 

<br /> Gillian Gibbon

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Gillian Gibbon

Many of the raw materials used in the packaging industry are commodity based. Commodity prices fluctuate, often dramatically. Unless you have specialist knowledge of these markets, it is difficult to understand the cost bases of packaging suppliers and prices only ever go up …or do they?

A good supplier is as important as a good customer and your supply chain is fundamental to your success therefore you should be working with your packaging suppliers to ensure that they understand your service and quality requirements, especially where you need items specifically made or printed for your business.

However there are a number of simple ways you can ensure you keep on top of your packaging costs. Can you use a lower grade of material, or a different material altogether, for the same job? Can you amend the style of packaging to reduce your costs? Can you plan your orders better so you can give a covering order for a larger quantity at one time which may result in a large price decrease as the order falls into a different “price band”?

Further considerations include understanding the full product range available and what alternative product options there are in the market. It may also be possible to change the number of units in the pack to achieve cost benefits and to review packaging design more regularly with each customer. The use of colours and the extent of print area on each packaging item will also affect your costs. Use of recycled materials and whether your packaging is recyclable and how easily may be important for your organisation’s Green credentials.

These are some of at least 12 different areas we look at, on top of simply getting the best “cost per unit” in place for our clients, when carrying out a packaging project.