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Consumer Goods Logistics Blog


Cut Packaging Costs WITHOUT Changing Your Packaging

Published by Alex Stark on October 21, 2011

What if I said you could cut your packaging-related costs by 25% without changing your packaging?

It's possible, but it requires a significant shift in the way many CPG companies manage final packaging.  Specifically, it means performing final packaging within your distribution operation with contract packaging services, thus eliminating the extra time, freight costs and labor associated with using outside contract packagers. 

Larger CPG companies have already adopted this strategy by creating large "mixing centers," where they do final configuration of product within the distribution center just prior to shipment.  This allows them to reduce inventory and drastically reduce cash-to-cash cycle time by integrating formerly discreet functions.  The same opportunities exist for middle-market CPG companies.  But traditional distribution models, like old habits, die hard. 

To learn more, check out our white paper, "Integrating Packaging Into Logistics Operations," and read this Contract Packaging Magazine article on Kimberly-Clark's "Network of the Future".  

Filed under: Supply Chain Challenges| Contract Packaging