How Major Food Brands and Restaurants Save on Packaging

The global food service packaging market has grown a lot over the past few years, and it is expected to keep growing. Any kind of geopolitical shock drives up the cost of ingredients, packaging and energy for all companies, but there are many ways to save on these costs even in growing markets.

We use different strategies to examine and give advice on how to save on packaging in many industries, including food. Our activity-based cost model allows for negotiation without burning bridges, which is something that many companies can struggle with. This, along with many other strategies, can help your company start saving on packaging.

First steps to saving

When trying to save on packaging, one of the first things to recognize is that packaging is not a fixed cost. Market dynamics shift frequently, so suppliers must keep up with that. Unfortunately, this is what leads to packaging costs rising. Doing a few check-ins a year on packaging budgets and updating what needs ordered can help your company begin saving. For example, if your company has stopped using a certain type of packaging as often, analyzing your specific needs allows you to adjust future orders to lower the amount.

How can PacIQ help?

Our approach to foodservice packaging cost strategies combines sophisticated cost modeling, competitive procurement and full price transparency. This gives procurement teams the tools to negotiate from a position of strength rather than guesswork. Clients also gain access to market intelligence to remove any bias from decisions that may stem from suppliers.

We know one of the hardest things about packaging is negotiating with suppliers. We have advice for this and can even help in many situations! Beyond this, we can also help explore alternative options if your packaging needs to be updated or changed for any reason, not just cost.

Conclusion

Reducing packaging costs is an important priority for food manufacturers looking to improve profitability without compromising product quality. Whether it’s changing suppliers, finding money in the budget to save for sustainable packaging or even just a simple quarterly review of packaging costs and needs, there are so many strategies to lower these costs or keep them in check.

At RTi Global, PacIQ can help with any step along the way. Whether you just need advice on a specific category or an entire overhaul of your packaging strategies, we have the experience with the food industry to get your company to a place everyone can be happy with. Reach out today with any questions!