When you’re managing a warehouse, you’re often faced with endless decisions. One of the primary concerns for many businesses is reducing costs. Packaging can be an obvious path to saving money. However, transitioning to more cost-effective packaging shouldn’t mean you’re also sacrificing quality. As the pandemic’s effects on global supply chains diminish, price, rather than availability, has become the dominant factor driving choices for many operations.
The team at Pipeline Packaging understands customers’ concerns about rising costs, and as packaging experts, we know it takes more than switching out a couple of components to create a lasting economical system. Here are three tips for decreasing your packaging costs.
Tip #1: Optimize Your Inventory Management System
The packaging system you create doesn’t matter if it isn’t there when you need it most. At the same time, it can often feel like your business is beholden to the waxing and waning of the supply chain. Every industry faces this balancing act of external factors while keeping internal production moving forward.
That’s where having a nimble inventory management system can alleviate concern and guarantee your cost-effective packaging is always there.
Pipeline Packaging’s inventory management services are a game-changer for many customers. Our team of supply-chain experts use cutting-edge technology to analyze product forecasts, supplier lead times, customer usage, and other variables. Using a culmination of data, professional experience, and your specific needs, these specialists can help you determine the appropriate level of safety stock while keeping packaging as cost effective as possible.
The benefits of inventory management go beyond planning. Pipeline lends customers access to nearly 1 million square feet of warehouse space through its web of nine warehouses strategically placed across the nation. This cost-effective packaging option gives customers the ability to free up their own space by safely storing components, or even entire packaging systems, in our warehouses as needed.
With more than 30 years in the industry, Pipeline Packaging account manager Jim Zuidema understands the value warehousing services can add to a customer’s operation. He explained one example where a customer not only cut costs but increased productivity.
“Recently, I was working with a company that primarily uses totes and drums and was looking for a more cost-effective approach to packaging,” said Zuidema. “With a custom inventory management system, the customer’s warehouse regained about 25% of its space, which ultimately allowed it to double its productivity.”
By extending our warehouses and inventory tools, we can help you reclaim warehouse space to streamline your own production capacity that would have otherwise been lost to storing safety stock. Pipeline even offers customers inventory stock agreements to guarantee your supply of cost-effective packaging, whether stored with us or shipped directly to your location.
Tip #2: Benefit from a Distributor’s Advantage
Compared to manufacturers, distributors can offer more options when it comes to sourcing economical packaging. Pipeline Packaging leverages its distributor’s advantage to grant customers access to a selection of products from more than 400 global suppliers. This extensive network of manufacturers and other distributors also ensures customers receive competitive pricing for their systems and improves flexibility when it comes to adjusting packaging components.
Our distributor’s advantage allows us to capitalize on an array of cost-effective packaging measures beyond the products themselves, including bulk pricing and reduced transportation costs.
For nearly a decade, Mike Watson has served as Pipeline’s regional sales manager for the southwestern United States. He peeled back the curtain on different ways our customers save by partnering with Pipeline Packaging.
“Mixed freight loads are one of the ways we can provide cost-effective packaging for customers,” said Watson. “We’re always placing multiple bulk orders through our different connections, which provides more opportunity for shipping multiple customer orders together on one load.”
For instance, one of Watson’s customers was previously transporting its various packaging components — including 32 oz. bottles, pails, and drums — using four separate trucks from their respective suppliers. Pipeline provided an alternative sourcing process that allowed the customer to maintain its supply using only one truck. Immediately, the customer began saving around $800 per month in freight costs alone.
Pipeline Packaging’s distributor advantage dispels the myth that you shouldn’t put all your eggs in one basket. Your one-stop shop, we place every aspect of the packaging process under one roof, making it easier to find everything you need for cost-effective packaging.
“One customer was interested in contracting a designer to create new labels for his car wash solution,” said Zuidema. “We offered our own in-house packaging design capabilities. Now, his packaging system arrives directly to his warehouse with the new designs already applied.”
With a complete arsenal of inventory and services, Pipeline customers have every available resource for achieving cost-effective packaging at their fingertips.
Tip #3: Trust Expert Advice
Trusted advice from a valued partner can often be the best strategy for cutting costs. One of the many ways we’ve seen our partnership assist customers has been by identifying over-specified packaging. In these cases, customers are using components or entire systems that overperform for their needs.
“Overspecification is a common occurrence, and it creates a lot of added costs for no added benefits,” said Watson. “For example, someone may use a red 1.2 thickness tight-head drum, but should really use a 0.9 thickness drum. That’s where SKU rationalization can correct these discrepancies for more cost-effective packaging.”
At Pipeline Packaging, SKU rationalization is ingrained in our process. By getting into the weeds of product specifications, our team ensures your comprehensive system performs for your needs while protecting you from overpaying
“Customers are experts in their respective industries, but they don’t necessarily know the perfect packaging for their situation,” said Zuidema. “Usually, they’ve been using the same packaging for 10 to 15 years and don’t realize they’re paying too much. On our end, it’s really about asking the right questions to uncover these areas and help customers save money.”
Partner with Pipeline for Cost-Effective Packaging
The key to maximizing your savings means finding a partner who can execute each of these tips. At Pipeline Packaging, we are committed to the perfect comprehensive packaging solution, which means helping you find packaging that suits your industry and your budget. Our team is ready to utilize our complete arsenal of people, products, and services to help optimize operational expenses.
“We believe it’s the relationships with our customers that allow us to provide the best service,” said Zuidema. “We take the time to understand their businesses and their needs. We aren’t a call center that fills orders. We’re a partner that builds connections with in-person visits and entire teams dedicated to their success.”
Pipeline Packaging strives to be an asset to customers. We take ownership in our roles and their ability to help your company grow. From our sales teams to customer service to warehousing, and others, our employees take responsibility in providing the best, most cost-effective systems and value-added services. Contact us today to learn how you can partner with Pipeline for more cost-effective packaging.
