Many brand owners believe that buying directly from the manufacturer is the best way to save money, but they may not have considered that there may be higher costs in other areas of their packaging supply chain.
Here are seven cost-saving benefits of outsourcing your packaging supply chain:
- Reduced Overhead Costs: Outsourcing packaging can reduce overhead costs such as rent, utilities, equipment maintenance, and insurance. Since packaging operations are handled off-site by an outsourced packaging department, the manufacturing plant can avoid the costs associated with maintaining their own packaging facility and equipment. Read about how we helped protect one of our customers when they were audited by their insurance company here.
- Lower Labor Costs: Hiring and training packaging staff can be expensive for manufacturing plants. Outsourcing packaging can reduce labor costs by eliminating the need to hire and train packaging personnel. Additionally, outsourcing packaging can also reduce the costs of employee benefits and other associated expenses.
- Elimination of Material Waste: Outsourced packaging departments have extensive experience in designing and implementing packaging solutions that minimize material waste. This can lead to significant cost savings for manufacturing plants by reducing the amount of raw materials needed to produce packaging materials.
- Reduced Packaging Errors: Outsourced packaging departments have quality control measures in place to ensure that packaging materials are produced accurately and consistently. This can reduce the likelihood of packaging errors that could result in product recalls or other costly disruptions, and by ensuring quality, the supplier takes on the liability.
- Economies of Scale: Outsourced packaging departments may be able to achieve economies of scale that result in cost savings for manufacturing plants. By pooling the packaging needs of multiple clients, outsourced packaging departments can negotiate better pricing on raw materials and other packaging supplies. Our customers benefit by leveraging our purchasing power and the long-standing relationships we have with our vendors, and instead of paying for the entire purchase order upfront, they are invoiced for the quantities they release.
- Access to Advanced Packaging Technologies: Outsourcing packaging can provide manufacturing plants with access to advanced packaging technologies that would be too costly to implement in-house. This can lead to cost savings by increasing packaging efficiency and reducing waste. When you are able to reduce costs in other areas, you can afford to invest in technologies that will grow your business.
- Reduced Downtime: Outsourcing packaging can help reduce downtime in manufacturing plants by ensuring that packaging operations are handled quickly and efficiently. This can lead to cost savings by minimizing production delays and maximizing plant output.
If you are interested in exploring how ForeFront Packaging could streamline your packaging supply chain, email firstname.lastname@example.org and one of our team members will contact you to set up a conversation, or fill out the form below: