Looking for Bargains: The Costliest Packaging Mistake Logistics Managers Make

Hunting for the lowest price, for the highest discount are ingrained in managers’ minds. Since the economic crisis of 2007-2008 very few companies have changed their policy of cutting costs in whatever manner possible. But this policy can lead to costly mistakes. Each packaging mistake our team at Logistic Packaging observed in our clients’ operations originated in this type of policy: always seek the lowest cost, the best offer.

Low Prices and Indiscriminate Supplier Selection: The Disastrous Duo

The most frequent scenario our packaging experts encounter is this one. A company needs customized packaging materials. As you already know, customized packaging solutions are more expensive than standard products. And here comes the packaging mistake: the client purchased the batch of customized containers from one supplier, and the divider systems or textile dunnage from another.

In theory, the client made the right choice: each of the respective suppliers offered the lowest price for the respective packaging material. In practice, the customer made a serious packaging mistake because the two items, sourced from two different suppliers, do not fit together perfectly.

The Importance of Customization Done Right

Customized packaging materials are created especially for a specific type of product. They are like bespoke suits, made to measure and which fit only one person perfectly. Now, imagine that you ordered your coat from a tailor and the trousers from another tailor. If they do not communicate with each other, you will end up with a casual coat and a formal pair of trousers. They do not fit together.

The same thing happens to customized containers and inner dividers sourced from different suppliers. A difference of a few millimeters is sufficient to make them inadequate to be used together. The dividers will be either too loose inside the container, or too tight, creating undue pressure on the container walls.

How Costly Is a Packaging Mistake of This Nature?

The potential future losses a company may sustain in the scenario described above are difficult to estimate. With every shipment there will be a significant percentage of damaged products. The containers and dividers, being unfit to be used together, will increase each other’s wear and tear and they will reach the end of useful life sooner than they should.

Apart from these obvious cases, the packaging consultants of Logistic Packaging identified various other types of losses:

• Loss of reputation: when the customers keep receiving their orders with damaged product, after a time they will stop doing business with the respective company;
• Work related accidents: if a container breaks down due to stress and pressure from unfit dividers at the moment when the employees load it up with products;
• Too much space taken up in the warehouse and the trailer: if the divider system and the container do not fit, they will hold fewer products than properly designed packaging materials.

All these losses are not just theoretical, but financial at the end of the line. Every lost customer, every hospital bill you have to pay for your employees, and every extra square inch of space your products take up cost your company money.

The Right Way To Save Money

At Logistic Packaging, we understand your need to save money, improve productivity and efficiency in your warehousing and logistic operations. We also know that each packaging mistake has hidden costs you may not be aware of.

This is why we always work with our clients to develop complete packaging solutions for them, both for standard packaging materials and for customized solutions. We do not always have the lowest price on the market. But we have the know-how and the dedication to help you save money the right way, by using professional and reliable packaging materials.

The money spent on accurately designed and produced customized packaging materials today is a strategic investment for your company. These products will serve you for a long time and will ensure that your products are kept safe during storage and shipping. Most importantly, they will put a stop to any future packaging mistake, because our specialists are always available to advise you for any packaging projects and special requirements you may have.

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