Due to a variety of reasons within supply chains, including shortages and longer leadtimes, prices and costs are on the rise and inflation continues to be one of the challenges large, start-up, and small businesses are facing today. At Ashtonne Packaging, in business since 2007, we are fighting inflation too, and monitoring our costs to help ensure we provide value for our customers, helping them increase sales and profits. Please see the top ideas we suggest small businesses consider when dealing with rising costs.
1) Consolidation of suppliers- companies today don't have time to see all kinds of packaging companies and all the services each offers.
- Save time and money by dealing with a packaging partner, a custom packaging company that can provide all the products and services your company needs, and at a competitive cost.
- One company, servicing more of your packaging needs, puts more responsibility on them to ensure your packaging arrives when needed and only in the amounts needed. It also takes less time to manage your packaging, follow up orders, and reduce expedites. This should be your packaging partner!
2) Process and packaging audits- allow a supplier to come in and analyze your processes and packaging.
- Identify how a package is handled through your supply chain and develop solutions to move faster with fewer touches, getting your products to market sooner and with less waste.
- Are there situations where you are hand-packing products that could be done by a third party, offsite, saving time, and labor and freeing up floor space? Third-party fulfillment programs can allow you to focus on your core competencies and increase your efficiencies.
- Many times a new set of eyes can help identify "cost opportunities" in your lines and how your products are handled. Many processes in a plant were "always that way" and could be in need of a revamp.
- Review if your company is running a "LEAN" operation, identifying areas of improvement. Ashtonne Packaging will take the time to understand your operations and help you identify critical areas in your packaging process where costs can be taken out and efficiencies improved!
3) Evaluate and re-design your packaging- review all your packaging and determine what is really needed in your supply chain.
- Many times a product is over-packaged, either with too much filler or perhaps using a stronger box than what is actually necessary.
- A re-design can eliminate excess packaging and save you costs with reduced shipping weight.
- An SKU consolidation can eliminate floor space and save you money by not keeping as much inventory on your floor, and having all of it usable, avoiding damage and waste.
- Some packaging is designed to run on automated equipment which could result in leaner packaging and automated processes saving materials and labor. With labor rates in N. America is on the rise, and a custom box designed to run on automated equipment could be a viable alternative.
- Get samples that allow for different transit situations that will result in lower labor costs, less waste, lower returns, better shipping rates, and eco-friendly materials!
- Sometimes just "tweaking" the dimensions of a carton or shying flaps can help eliminate cost.
4) Review your current printing techniques on your product packaging and determine if there is a better method that would save money and labor, especially as more and more packaging travels through the Ecommerce channels.
- Consider all options as the cost of cutting and printing dies can be expensive and may not be needed.
- Is it important for your logo and brand to be identified prominently on your packaging?
- With the rapid growth of e-commerce, perhaps sending your products B2C is critical. Our success with ecommerce packaging and retail packaging and allowing customers to have an unboxing experience, creating a dramatic "moment of reveal", could be a solution to improve sales and profits.
Bottom line: partner with a reputable packaging company that is committed to helping their customers solve their packaging concerns.
Inflation happens as a result of a macroeconomy - what are you doing to offset those rising costs and labor rates? You may need to evaluate all your product packaging options with a reputable company, a packaging partner that takes the time to understand your business, including all aspects of your supply chain, and can make it eco-friendly too! Call Ashtonne Packaging (877-522-6937) and let us develop plans together to make this happen! If you are a new or start-up business, or just a small business, and are ready to make a decision, or at least consider your options, schedule a personalized meeting.