As the demand for contract packaging services continues to grow, so does the need for cost-effective solutions that benefit both the contract packagers and their clients. In today’s competitive marketplace, contract packagers must find ways to provide high-quality service while also being mindful of cost. This article will explore some of the ways contract packagers can save their clients money while still turning a profit, and provide real-world examples to illustrate these strategies.
1. Bulk purchasing of materials
One of the most effective ways contract packagers can save their clients money is by purchasing materials in bulk. By purchasing large quantities of materials, contract packagers can take advantage of volume discounts and pass these savings onto their clients. For example, a contract packager that specializes in food packaging may purchase large quantities of food-grade packaging materials, such as films and pouches, at a reduced cost. They can then use these materials for multiple clients, reducing the cost per unit for each client.
Real-world example: A contract packager that specializes in consumer goods packaging was able to negotiate a significant discount on a large order of plastic clamshell containers. They were then able to use these containers for multiple clients, resulting in significant cost savings for each client.
2. Efficient use of machinery and equipment
Another way contract packagers can save their clients money is by ensuring that machinery and equipment are being used efficiently. This can include optimizing production lines, minimizing downtime, and reducing waste. By maximizing production efficiency, contract packagers can produce more goods in less time, reducing costs for their clients.
Real-world example: A contract packager that specializes in packaging for the medical industry was able to optimize their production line by reorganizing their equipment layout and streamlining their processes. As a result, they were able to increase production efficiency by 30%, resulting in significant cost savings for their clients.
3. Implementing lean manufacturing principles
Lean manufacturing principles focus on reducing waste and increasing efficiency throughout the production process. By implementing these principles, contract packagers can reduce costs and improve quality for their clients. This can include minimizing inventory, improving production flow, and reducing lead times.
Real-world example: A contract packager that specializes in automotive packaging was able to implement lean manufacturing principles to reduce waste and improve efficiency. By minimizing inventory and improving production flow, they were able to reduce lead times by 50%, resulting in significant cost savings for their clients.
4. Providing value-added services
Contract packagers can also save their clients money by providing value-added services, such as custom packaging design and logistics management. By offering these services, contract packagers can help their clients reduce costs and improve their supply chain operations.
Real-world example: A contract packager that specializes in food packaging was able to provide custom packaging design services to a client. By creating a more efficient packaging design, they were able to reduce the amount of packaging material used by 30%, resulting in significant cost savings for the client.
There are many ways contract packagers can save their clients money while still turning a profit. By purchasing materials in bulk, using machinery and equipment efficiently, implementing lean manufacturing principles, and providing value-added services, contract packagers can reduce costs for their clients and improve their own profitability. These strategies are proven to be effective, as illustrated by real-world examples from a variety of industries. By embracing these cost-saving strategies, contract packagers can position themselves for success in today’s competitive marketplace.
Label-Aire: Leading Labeling Systems And Labeling Equipment
Over 50 years ago, Label-Aire, manufacturer of labeling systems introduced a revolutionary new method for applying pressure-sensitive labels using labeling systems technology. The patented “air-blow” labeling systems concept provided the packaging industry with a preferred labeling equipment method of label application which eliminates the need for additional product handling via labeling systems & labeling equipment. This pioneering technique has gained complete acceptance and contributed to the widespread growth of pressure-sensitive labeling systems & labeling equipment in existing and new markets, worldwide.