One of the advantages of BoldtSmith Packaging coming into your facility is having a fresh set of eyes take a look at the current packaging process and designs. Specifically, eyes that have been in thousands of manufacturing facilities for products ranging from pancake mix to motorcycles.
No matter what the product is or what the packaging is, there are six words we commonly hear. “It’s what we have always done”. When we hear this, the majority of the time we are able to uncover substantial cost savings! A few of these potential packaging optimization opportunities are outlined below:
- Packaging material, freight or labor savings
- Product damage reduction
- Packaging consolidation
- Process changes
Packaging has a way of being “grandfathered” in at a lot of companies. For example, a company develops a packaging solution for a product where the forecasted annual quantities were 50,000 units per year and shipping palletized into Whole Foods. Since that product was introduced 5 years ago, it has now been picked up by Walmart, Amazon and Target. Annual quantities are now over 8 million!
The company has exhausted all potential opportunities to increase margins through optimizing their processes, materials and waste related to manufacturing the product. However, the packaging that was used at Whole Foods when the annual quantities were 50,000 is in fact the same packaging being used today at 8 million units per year. How could that be? Because, “It’s what we have always done”.
When you read through that, what packaging came to your mind? Corrugated boxes? Clamshells? Bottles? Pallets? That’s great! Packaging means something different to every company. For one company, it might mean gusted pouches going into a master carton that is palletized and stretch wrapped with corner boards and slipsheets between each layer of cartons.
How many different packaging materials and processes were just listed in that example? Were those materials and processes selected based on data and testing with a goal of maximizing profit, reducing damage and increasing customer satisfaction?
Or are they being used because “It’s what we have always done”?
Reach out to BoldtSmith Packaging and we will come into your facilities to identify what opportunities exist. From there, we will design, test and implement optimized packaging concepts!