Business is money, packaging is a cost. Depending on the industry, packaging can constitute about 25-35% of the cost of the finished product. This is a lot. And the company is always under pressure to reduce this cost …
Optimization is included in the tasks of everyone who deals with packaging. Life shows, however, that time pressure, inability to check several options on the market, attachment to the current supplier and the use of old solutions makes the final solution is ok, but …
Packaging offers significant opportunities for implementing optimization processes and, consequently, for reducing costs. Due to my experience, I know that “post implementation review” sounds great, but it rarely happens in real life. The product life cycle indicates product implementation stage at the beginning, later an increase in results (usually related to market supply) and the satisfaction with results. After some time, it turns out that the margin drops, sales decreases and … the product requires revision, relaunch or cost optimization to stay on the market. In this situation, one of the mechanisms is packaging optimization.
Optimization of solutions
I know this phenomenon from my own experience. During the years of work for FMCG industry leaders, I (or my team) completed hundreds of projects, which on an annual basis achieved results reaching or exceeding EUR 3 million in annual savings … only in the area of packaging. Such a result cannot be achieved through one project, which is why the task should be approached comprehensively, this is by the analysis of the current portfolio, price review, analysis of possibilities and invitation to cooperate with suppliers, and most importantly – the commitment of decision=makers. Without “OK to GO” there is no project.
And that was what I implemented by presenting projects to the Company’s Management and obtaining acceptance for activities that gave real money. I believe that to achieve savings, packaging cannot be torn away from business reality.
In a business that has a good view of the future and understanding of market reality, wide operation in the field of packaging, their optimization, portfolio revision and harmonization or reduction of unprofitable items – brings measurable benefits. Real and measurable. For many years I dealt with such action which brought measurable benefits to the Company, contributing to savings that were directly used to support promotion and sales. Now I am ready to share my experience with you and help you to stop the “leakage” of money from your company’s budget. Big money …
Adam Kaźmierczak 