In order to optimize packaging-related cost savings, using a holistic approach to evaluate processes, waste, sourcing, and design throughout the entire packaging system is necessary. In most cases, when companies discuss their approach to cost savings related to packaging, it addresses only one element of packaging, such as reducing packaging material.
Optimizing packaging and supply chain costs involves partnering with design and supply chain experts, as well as material suppliers to identify and develop the best quality solution. It involves leveraging experts in logistics, sourcing, packaging design, process efficiency, distribution costs, etc. to identify what’s working well and what can be improved upon.
Adept Packaging’s Value Design Model
In Adept Group’s Value Design Model to Margin Improvement, we leverage our global supplier network to evaluate and identify the best supplier for the challenge at hand, resulting in the lowest total landed cost for our clients’ packaging designs. Through a thorough understanding of the client’s supply chain, needs and limitations, we identify the optimal solution.
After understanding our clients’ needs, our cost savings experts identify areas for margin improvement and then we select the supplier that can offer the highest quality solution.
For example, for corrugated packaging, we’ve partnered with TRG, a supplier with unique machinery, a design ethos that matches ours, and insight into the entire corrugated supply chain. On projects we’ve worked on with TRG, we average:
- 15-20% material reduction
- 25-30% throughput increases
- Up to 80% labor and set up reductions
- Time and waste reduction to increase total supply chain effectiveness
Avenues to Corrugated Cost Reduction
Depending on the material, component, product and supply chain needs, cost savings can come in the form of:
- Optimizing use of material
- Design optimization and automation
- Design and supplier equipment utilization
- Pallet optimization and quality improvement
- Labor and setup reductions
- Eliminating additional components
- Update printing methods using the latest technology
Material Reduction through Design Innovation
Through the use of specialized converting equipment, we are able to create corrugated designs that reduce the number of components in the packaging. These unique conditions allow for design innovation for both online and offline execution without sacrificing packaging quality or performance.
Labor Reduction Throughput and Set-up Efficiencies
Combining innovative design concepts with uniquely capable supplier equipment, we are able to develop quick set up designs and revolutionary case automation possibilities. These designs reduce material waste, as well as allow for staffing reallocation due to reduced time needed to set up packaging, both in the warehouse and in-store.
Time and waste reduction to increase total supply chain
In addition to increasing efficiency through packaging design, material reduction allows for maximum pallet efficiency through more product per pallet. The reduction of packaging components leads to less inventory management and increase warehouse space.
By starting with the packaging concept, this process allows for efficiency improvements throughout the entire supply chain, as well as innovation that not only saves cost, but differentiates products in store.
Cost Savings Beyond Sourcing Learning Share
If you’re interested in learning more about cost savings beyond sourcing, check out our December 2019 Learning Share presented by Adept Value Optimization President, Jared Spencer, and TRG Director of Design & Value Engineering, Jeff Jolley. They discuss details and case studies of how our approach has helped some of the most iconic Food, Beverage and CPG companies achieve their cost savings goals.