Margin improvement for packaging requires a methodology that identifies and evaluates all the sources of cost within the packaging process to reduce waste, optimize for efficiency and add value. Adept Packaging’s Value Design Model Analyzes spend throughout your packaging program, from concept to commercialization. This methodology provides a holistic view of cost savings opportunities, while identifying and correcting inefficiencies.
Evaluate Your Package Design
When designing a new package or remediating an existing design, there are many factors to consider to reduce cost. With new and innovative concepts being engineered every day, rethinking the material, components, and design of your packaging can significantly reduce cost.
When you engage a consultancy like Adept Packaging, companies gain access to incredibly diverse teams of packaging subject matter experts with a multitude of materials, components, processes, and technologies. Experience enables our team to identify the attributes of your preferred packaging design and offer suggestions to improve, amend, and adapt for cost savings.
Know the Drivers Impacting Packaging
Another consideration when designing packaging is e-commerce market growth. Among other drivers in the packaging world, packaging for e-commerce demands attention. Considering the complexity introduced by the additional touchpoints throughout the distribution environment, packaging needs to be robust enough to protect the product and brand integrity. With experts in e-commerce and sustainability, our team can help to reduce the costs associated with damage and product loss.
Analyze Your Procurement Strategies
In addition to packaging design, analyzing your packaging procurement strategies is an important focus area for margin improvement. Often companies use the same supplier for years without evaluating other options. Taking the time to do an analysis of, not only your suppliers but your purchasing schedule will give your procurement team a more transparent view of possible avenues to cost savings.
Through our extensive experience and visibility into the packaging industry, Adept Packaging has developed a thorough benchmark of the capabilities, advantages, and drawbacks of packaging suppliers, original equipment manufacturers (OEM’s), contract packagers and other adjacent companies within the packaging industry. Being supplier and material agnostic, allows us to help you identify the best solution to fit your pricing, quantity and quality needs.
This process helps in identifying & utilizing new packaging technologies, accelerating project schedules, expediting sample/prototype deliveries, lowering package pricing and enhancing overall technical packaging support to provide you the lowest total landed cost.
Examine Operations Optimization
Often, operations are an area that can be optimized significantly as well. Companies often overlook the maintenance of overall equipment effectiveness; only evaluating it when production volume dips significantly or they’re experiencing an uptick in failures.
Leveraging our operational equipment experts and best in class process efficiency tools, companies have been able to identify areas of improvement in OEE of up to 20%. From line and plant efficiencies to production and process effectiveness, our team will analyze your operations and make suggestions to improve overall productivity and reduce cost.
Increase Efficiency in Your Supply Chain
Analyzing distribution costs and shipping efficiencies in your supply chain can be another area of margin improvement. From finding more efficient ways to package products for shipment, to examining shipping patterns, there are many different factors that can be reevaluated to reduce cost throughout the supply chain.
Our supply chain gurus have experience working with the most complex regulations, in the most demanding distribution environments in the packaging industry. With an aim to reduce risk, ensure compliance, and safeguard distribution qualification, our team will identify and mitigate any quality issues throughout your distribution environment.
Value Design Model for Packaging Margin Improvement
Our subject matter experts deploy our Value Design Model to deliver margin improvement and to identify a comprehensive view of process inefficiencies, redundancies, supplier network gaps, material expenditures and areas for improvement within your packaging and logistics departments.
Utilizing our vast network of SMEs, as well as our extensive supplier network, Adept Packaging provides our clients with immediate process improvements, design specifications, and testing recommendations, as well as other recommendations for margin improvement.
The Adept Packaging Value Design Model, featured in the graphic below, serves as a guide for driving value across your packaging supply chain.
Contact us to help you reduce cost, increase margins and add quality to your packaging supply chain today.