Packaging Cost Management

Cost Management in Packaging Is More than Just Price

Containing packaging costs is essential for virtually all manufacturing and distribution companies. But packaging cost management is important not only because packaging represents a significant expenditure, but because of its impact on other operational costs -

• Packaging materials consume storage space. Storage costs can be significant, since corrugated boxes and many void fill and cushioning materials are extremely bulky.
• Packaging equipment and systems affect productivity. Automated packaging solutions can add great value to the bottom line when they increase throughput.
• Packaging materials and systems affect quality. Today’s b2b and b2c end users have high standards. Damaged products not only generate costly returns and replacements, they jeopardize customer relationships. Effective packaging is a front line component of product quality in any operation.
• Packaging materials and equipment impact plant safety and ergonomics. Packaging materials and machinery vary widely in their safety and ergonomic characteristics. With insurance costs rising and the always important need for a healthy workforce, issues arising from inappropriate packaging are simply unacceptable.
• Packaging materials affect shipping cost and delivery efficiency. Intelligent packaging design maximizes protection while minimizing shipping unit size and weight. Today’s extraordinarily high fuel and transportation costs necessitate ongoing packaging review and redesign.
• Packaging materials affect product sales. POP displays (point of purchase), shrink film quality, primary container design and graphics, can all influence customers to buy – or ignore – consumer packaged goods. Even something as simple as printing a web address on one panel of a corrugated shipping box can generate new sales opportunities.
• Packaging materials and systems impact sustainability. While many of the areas noted above are frequently overlooked, eco friendly packaging is now a top of mind issue, and for good reason. The recycled and recyclable attributes of packaging materials, along with other factors such as carbon footprint and the energy consumption of packaging machinery, have an enormous cumulative effect on our quality of life.

Pioneer Offers Complete Cost Management Services

Like you, we recognize the importance of packaging solutions that improve all areas of operational cost, not only material cost. We work with customers to identify the best opportunities for improvement and develop options that make your packaging a contributor to profits rather than a drag on the bottom line. In upcoming posts we will talk more about these different areas of packaging cost management and how we can approach them.
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Packaging Materials, Packaging Equipment, Shipping Boxes