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If your company sells or distribute products, you probably package them. Your packaging serves 2 key purposes;

1.To protect your products
2.To market your products

Are you sure that you are fulfilling both functions to your best ability at the most cost effective prices?

Maybe you sub-contract most of that work out to the experts! But when did you last take stock to ensure you were getting value for money?

All forms of packaging are affected by rising energy costs especially glass and plastic so therefore cost control and reduction of packaging are more important than ever.

Fit for purpose is very relevant to packaging. Often there is over-specification, particularly on package size, which is both wasteful and counter productive.

This can affect your sales, as well as your distribution costs.

Perception is 98% of reality, and you do not wish to upset retailers, by sending large amounts of unnecessary packaging. This is especially true where environmentally conscious consumers are negative about unnecessary use of materials.

While undertaking a full packaging cost reduction exercise, can be very time consuming, especially if you are not an expert in cost reduction, here are 13 Questions you need to ask yourself, to ensure that you are getting good value for your packaging spend.

1.Are you complying with regulations in relation to recycling and disposal?
2.Are you using recyclable materials and utilising that fact in your marketing?
3.Have you considered the issue of the weight of your packaging, to reduce freight costs?
4.Is your packaging fit for purpose, and properly protecting perishable goods and thus extending their shelf life, and reducing on wastage?
5.Are you taking advantage of new developments in packaging?
6.Have you looked at the size and quantities of goods per package?
7.Have you reviewed the frequency of deliveries, and the cost of deliveries?
8.Are you using the latest RFID (Rapid Frequency Identification) technologies to aid in traceability of packages whilst in transport?
9.Is your labelling system the most efficient?
10.Are you complying with all EU regulations with respect to descriptive labelling?
11.Is your packaging produced on demand, or do you have to commit to large volumes up front?
12.What procedures have you put in place to avoid counterfeiting?
13.Are you taking full advantage of the marketing potential of your packaging?

Packaging, is considered by many a sunk cost? This does not need to be the case, make your packaging costs work in your favour.

If you have not the time or the expertise to do this, then please contact us now, and we can arrange to have one of our experts meet with you, to see if we can help you.

About the team at Cost Control.
Cost Control Management Systems, are a team of experts, with over 200 successful cost reduction projects between them. The team, are quickly able to spot if there is money saving potential, in any of the cost categories, that your company may feel they are overspending on.

Cost Control Management Systems, are a team of experts, with over 200 successful cost reduction projects between them. The team, are quickly able to spot if there is money saving potential, in any of the cost categories, that your company may feel they are overspending on. Either fill in our web form at http://www.costcontrol.ie or call us now on.