If you own a business, or you run a business, you know full well how important it is to cut costs. The more costs you cut, the higher your profits become. Assuming your revenues is the same, the better you at managing your costs, the higher your profits become. The higher your profits, the happier your shareholders become. It really is that simple. It’s pretty straightforward. There’s really no guesswork involved.
One of the key areas that manufacturers should look at as far as cost cutting is concerned is cartoning. Of course, there are many other areas in the whole manufacturing process that they could look at to tighten and streamline, but cartoning should not be overlooked. Your choice of a manufacturer for your packaging materials can lead to significant cost advantages.
It’s very important to know that your cartoning costs can actually be impacted by how you deal with your cartoning service provider. Seriously. If you make some small changes to your operations, you can go a long way in containing your cartoning costs. Keep the following tips in mind to decrease this type of manufacturing cost.
If you aren’t clear as to the specifications of your cartons and packaging materials, don’t be surprised if you have to put out some fires down the production chain. Unclear specifications can lead to unnecessary guesswork down the road and lead to faulty cartons and casepacking materials. This can negatively impact your brand, and this can negatively impact your operations. Who needs the headaches?
Be clear about the specifications. As the old saying goes, “Measured twice cuts once.” If you’re unclear about a particular specification, leave it out. Only send clear specifications to your cartoning contactor; otherwise, get ready for unnecessarily elevated cartoning costs.
Clear lines of communication
Another common cause of unnecessary manufacturing or process costs is bad lines of communication. If you have to talk to several people just to get the specifications across or just to get an update regarding your cartoning process, you probably are dealing with the wrong cartoning service provider. It’s probably a good idea to find another casepacking manufacturer.
The clearer the lines of communication both on the side of your service provider as well as your own organization, the lower your cost will be. Because, let’s face it, any lack of clarity, any miscommunication, any bad information can lead to elevated costs. It can lead to rework. It can lead to rejections and all sorts of problems down the manufacturing chain.
Commit to no last-minute changes
One very powerful way to save money on cartoning cost is to get a firm agreement with your casepacking manufacturer or service provider that there would be no last-minute changes. You have to commit to this. You have to set this down in stone not just on the part of your cartoning partner but also on the side of your own organization. As long as everybody is clear and as long as everybody works on the same script, things will proceed more smoothly, and this can translate to lower costs.