Less is more? Not in this case
Planning is essential for cost reduction in production and logistics. Every production launch involves a series of activities: receiving an order from the client, handling it through the Customer Service Department, Technologists, Graphic Studio, placing orders for raw materials and necessary supplies, preparing printing forms, and finally, production. Additionally, depending on the project, tooling costs must be taken into account.
These are the components of the packaging or leaflet price that are always present, regardless of whether the order is for one product or 100,000 packages or leaflets. This means that regardless of the batch size, the so-called fixed costs will remain the same for that production. It is more advantageous to produce more, as the unit cost will be significantly lower. This also brings other benefits. With good organization, we shorten the working time, making the entire production process more efficient. Additionally, we reduce the risk of raw material shortages in the warehouse and have full control over our resources.
Proper order planning can lead to economies of scale, although many clients resist this argument, explaining that they would need to provide storage space. At Preston Packaging, we understand this, which is why we offer on-demand ordering to our clients. Our Client does not need to have a warehouse, and this aspect is transferred to the producer.
Communication between the client and the printing house and long-term planning are always crucial. We understand that it is almost impossible with new projects, but it is still valuable for the client to share knowledge with the packaging producer about future plans regarding the project. In the pharmaceutical industry, later changes are difficult to implement due to applicable regulations, while in the case of supplements, small compromises can result in savings. The brand owner should choose a packaging supplier at the project stage to work together on finding the best solutions. We recommend dedicating time to meetings with a group of people involved in project preparation for new projects, as this will help shorten the time needed to refine the details related to the implementation. In situations where work is repetitive, providing advance information about the planned demand will be essential for optimization. This will help secure the necessary raw materials and other components.
Planning is not only beneficial for a company in terms of organizational order but also increases the level of organizational safety by eliminating unnecessary downtime. This way, we avoid stressful situations related to meeting deadlines, which can be challenging to maintain in times of market turbulence.
Uniformity doesn’t mean dullness
It is worth considering standardizing packaging sizes to be able to use the same die-cutting form while only changing the graphic design for individual products. The effort put into this process will result in cost reduction and more effective planning in the coming years. With our experience, we can help change the size of the packaging to be tailored to the product. This way, we eliminate “transporting air,” which also affects logistics and its costs. Thanks to experienced designers in our team, we can assist in the optimization process in this area. Standardizing sizes can also contribute to the reduction of raw material costs and post-production waste.
Guaranteed timely delivery
We have already experienced situations on the market where there was a lack of raw materials and disrupted supply chains. As a result, order fulfillment times significantly extended in almost every printing house. Fortunately, the situation has already been brought under control, but no one can guarantee that disruptions will not occur again. In this case, it is worth reconsidering the portfolio of materials approved for production by the Quality Department. Our specialists are always ready to offer advice and assist in the selection of substitutes that will maintain the highest quality of production.
SUMMARY
The most important aspect of this whole story is cooperation. Finding a business partner who wants both sides to win. Acting according to the win-win principle is the basis of our daily operations. Partner discussions, understanding the client and their needs or problems, sharing knowledge – these are the foundations of good cooperation in our opinion. A company looking for a packaging supplier knows its goal, and the producer knows how to achieve that goal. The key is a qualified team, good technological infrastructure, and effective communication. This way, we can achieve the best results. An experienced and trustworthy partner also provides access to information about the latest trends in the packaging sector. In the Preston Packaging team, we have specialists who can propose suitable solutions and select technologies that will optimize packaging production costs for the pharmaceutical, dietary supplement, and cosmetic industries.
