The Effects of Inflation on the Packaging Industry

Prices and costs are on the rise and inflation continues to be one of the challenges businesses are facing today, including the packaging industry. 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 our customers utilize to reduce inflation.

HOW ASHTONNE HELPS CUSTOMERS DURING PERIODS OF RISING COSTS

There are four key areas Ashtonne helps customers during periods of rising costs and inflation:

1) Consolidate suppliers- With time equating to money, and time is limited based on a companies needs, 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. If that company can service all your needs, and act as your partner, allowing you to focus on your core competencies, give them a try. 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- Ashtonne Packaging focuses on analyzing your processes and packaging - identify how your packaging is handled through your supply chain and verifying if there are any changes to your process. Ashtonne evaluates if there are any situations where you are hand-packing product that could be done by a third party, offsite, saving time, 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.

3) Evaluate and re-design your packaging- Ashtonne will review all your packaging and determine if any changes are needed in your supply chain. Many times a product is over-packaged, either starting with too much filler, or perhaps using a stronger box than what is actually necessary, this in the early stages of your product packaging life-cycle. A re-design can eliminate excess packaging and save you cost 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. Changing packaging to eco-friendly, using sustainable and recyclable packaging materials, can help save overall costs, for both product packager and end consumer. Ashtonne Packaging will provide samples that allow for different transit situations, resulting in lower labor costs, less waste, lower returns and better shipping rates. Sometimes just "tweaking" the dimensions of a carton or shying flaps can help eliminate cost. 

4) Review your current printing techniques - Ashtonne Packaging will review your current printing and identify opportunities to have your branded image stand out, thereby increasing your sales and brand loyalty. Perhaps even eliminating unneccesary printing, or ink jetting, can help reduce costs. If your company is selling and distributing more products through online channels,  we can evaluate the best packaging to elinate waste, damage and returns. 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.

EFFECTS OF INFLATION ON THE PACKAGING INDUSTRY

Inflation happens as a result of a macro economy - these increased costs impact all companies, including those associated with the packaging industry. At Ashtonne Packaging, we have to identify ways to offset those costs or risk losing market share or becoming non-competitive. Some of those include:

• more efficient automation and processes
• utilizing the internet for better and faster customer and supplier communication
• consolidation of our supplier base
• expanding our markets to help spread costs over a larger market share
• developing new materials, including eco-friendly, recyclable and re-usable

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. 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. 

Bottom line: partner with a reputable packaging company that can custom design new and revise existing packaging, and have it eco-friendly too, this in times of rising costs and inflation.

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