Using Proper Packaging Suppliers
One of the ways to save money up-front and later on with packaging supplies is to use the proper supplier for that supply. A lot of packaging companies sell products that are outside of their expertise. Integrity Pkg. connects you with the experts for the packaging supplies you are buying, and with expertise comes efficiency, and efficiency equals savings. By using suppliers that are experts in the supplies they manufacture, you are not only going to see an up-front purchasing savings, but savings down the road as the proper suppliers will have increased quality and service to prevent any future problems. We have audited suppliers across North America, and can ensure your company is using the best supplier for each packaging item.
Packaging Purchasing Strategies
Integrity Pkg. can help your purchasing team understand how packaging supplies are manufactured, and how to achieve savings through exploiting the processes at your packaging suppliers. By looking at economies of scale, shipping patterns, and how the supplier operates, we can find ways for your company to grab savings. We find that many companies we deal with do not understand the process beyond the bottom line price quotes they receive – but by talking to, and understanding how each of your suppliers operates, or even changing suppliers, packaging savings can be found through putting our knowledge to work.
Reviewing Packaging Material Specifications
Packaging material specifications are an integral part of the purchasing process and quality process for packaging supplies. Packaging specifications must be detailed, and meet your requirements – not your suppliers! Packaging specifications offer quality, consistency, and portability to your packaging supply purchases – and the better they are written, the more savings you will see. I review every supply you use, investigates the actual requirements, and provides detailed specification information for your suppliers as to your requirements. I then works with your suppliers to see how further savings can be found, by using different materials to achieve the same results, or in some cases, specifying higher-grade materials that are more common that will give you better packaging, at a lower cost. In some cases, I’ve ran into companies that have no specifications, or just those specifications written by the supplier – these customers were unfortunately losing money on every purchase, and on every issue that arose from using that supply as they were not detailing what they wanted to buy.
Packaging Efficiency Improvements
I’ve worked on many projects on improving line efficiencies at many packagers. We involve ourselves completely in the process, understand how your front-line packaging employees work, how your equipment works, and understand absolutely everything before making recommendations. Efficiency gains can be made in various ways – training of employees, process improvements, equipment improvements, and equipment additions are a few areas that can save you money. H2 Packaging will provide a complete audit of your packaging operations, and let your company know where efficiency, and therefore money, is lost.
Quality is an important process that any company must have, but sometimes the process for determining product quality needs to be reviewed for a packaging cost savings. An example that we like to use is with a consumer goods manufacturer I was working with that had a procedure to investigate a case of product every 15 minutes. Essentially, they were doing a product check – and the packaging for 6 units, and the shipper, were destroyed to do the test every 15 minutes. The packaging cost a total of $2.72 for every test where it was disposed – over a 24/7/365 operation, that is a total of $667,161.60 in wasted packaging! We modified the test to look only at the product before it was packaged, capturing the savings. Other ways we find quality savings is to review all sampling procedures to find where quality can potentially cause waste and efficiency losses.
Quality Of Packaging Materials
The quality of packaging materials is important to any facility – the more problems you have with materials, the more costs you will face during production. Many companies make the mistake of looking at the front-end initial cost of packaging supplies, and not the costs of using inferior supplies during production. In some cases, I’ve increased quality of materials, at the same time decreasing up-front costs – it is a matter of knowing the industry, knowing who has a good reputation, and who to trust in buying your supplies from. Not all “cost savings” can be measured in dollars – in this case, employee’s stress and frustration will be lowered with quality packaging materials that run better, and don’t continually cause machine jams.
Transportation costs can be realized on both ends of your operation – when material is shipped in, and when finished goods are shipped out. Over the last couple years with the rising cost of fuel, transportation costs have become a larger issue. I’ll review the costs of getting packaging materials to you, and shipping your finished goods to your customers to determine where savings can be found.
Returnable Packaging Programs
If you are dealing with several large customers, returnable packaging can be a cost-efficient way to save money on packaging in the future. Common in the automotive industry (Integrity Pkg. has extensive experience building returnable packaging programs), I’ve implemented returnable packaging with consumer goods companies, and with food companies. Returnable packaging is not a solution for everyone, but is an option for some companies.
Reducing Packaging Waste Costs
Packaging waste can be found in many areas from receiving, production, and shipping. I’ve developed programs with many of the industry’s leading packaging suppliers to have waste a zero cost factor for your operation – even if it is your fault! I can have your suppliers work with you on buying back damaged materials, paying for disposal costs, and damaged shipping costs. I’ll also investigate your packaging and transportation process to see where traditional waste occurs, and suggest ways to reduce it. Packaging waste doesn’t have to be your problem, and I can show you how.
After completing our nine-point packaging cost savings investigation, I’ll provide a detailed summary of where money is being lost, and what can be done to improve it. I’ll go through the entire process with your company, so you can reap maximum savings.
Please contact me so I can become a competitive advantage as part of your team: