packagings

Packing material

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target group	Basic statement	cost relevance
Mail order companies, manufacturing industry	The standardization of the packaging and the specification of the packaging material achieve the greatest effects. Alternative products and innovations are particularly effective here.	The savings potential is based on the degree of bundling options. Limits are given by packaging safety and the current state of the art. There is great potential for innovation here.

First of all, a classic needs and quantity analysis must be carried out here, whereby particular attention must be paid to which purchasing volume per packaging group is obtained from which supplier.

Different suppliers for cardboard boxes, filling materials, foils, etc. are often used. An ABC analysis can be used to determine which packaging goods are of strategic importance. An exact specification of the required packaging enables a real and targeted determination of the market prices and a comparison of the providers.

This analysis alone usually shows that bundling volumes brings clear cost advantages. Good suppliers store the ordered goods in their own warehouse for up to twelve months and ship them as required. This clause should always form part of a good supply contract.

Packing checklist

Volume bundling and provider concentration
Check alternative product qualities, reduce material thicknesses
Use innovative packaging concepts
Combine orders
Elimination of the middleman for A-packs
Involve foreign companies

case studies

A dairy company spent seven figures on cardboard every year. A call for tenders with precise specifications of the requirements led to annual savings of almost 11 percent.
A furniture manufacturer paid almost a quarter of a million euros a year for packaging. The expenses went to one supplier for cardboard and one for other materials. Despite the high savings potential of a change, the kitchen furniture manufacturer wanted to continue working with the existing suppliers, but was able to save 7.5 percent through renegotiation
A production company paid almost a quarter of a million euros a year for packaging with a higher turnover than the kitchen manufacturer. His two existing suppliers had a similar scope of services and delivered the same products. After the packaging specification was put out to tender and a change of both providers was recommended. However, the company only changed one supplier and achieved a cost reduction of over 12 percent.
An injection molding company had a need for optimization in the packaging area. Here, alternative packaging materials were sought that could reduce material consumption. One supplier met the conditions for the same quality, which enabled costs to be reduced by more than 25 percent.