1. Your pricing hasn’t been benchmarked in years
Long-term supplier relationships can be valuable, but they can also create blind spots when it comes to pricing. Material markets change, new manufacturing technologies emerge and competition among suppliers shifts over time. If pricing hasn’t been benchmarked against other suppliers in several years, there’s a real possibility you’re paying more than necessary.
Benchmarking doesn’t always mean switching vendors. Often, it simply provides insight into where your pricing stands and whether adjustments are warranted. Even a periodic comparison with similar packaging specifications can reveal opportunities for savings.
2. You’re paying for specifications you may not need
Packaging specifications often accumulate over time. A thicker material might have been added years ago to prevent damage. A special coating may have been introduced for a particular product launch. In many cases, those decisions were justified at the time.
But packaging rarely gets reevaluated once it’s in production. As products evolve and distribution processes change, it’s possible that some of those specifications are no longer necessary. Over-engineered packaging can add significant material and production costs without providing additional value.
Taking a fresh look at material thickness, structural design or finishing options can sometimes uncover simple ways to reduce costs without sacrificing protection or performance.
3. Rush orders have become the norm
Occasional rush orders happen in nearly every supply chain. Production schedules shift, forecasts miss the mark or unexpected demand spikes occur. But when expedited orders become a regular part of your packaging purchasing process, costs can escalate quickly.
Rush production often requires overtime labor, schedule disruptions and expedited shipping. Those expenses inevitably show up in the final invoice. If rush orders appear frequently, it may point to larger issues with forecasting, inventory management or ordering schedules.
Addressing those underlying issues can often eliminate a surprising amount of unnecessary cost.
4. You’re working with too many packaging suppliers
Many organizations end up with a long list of packaging suppliers after years of growth, acquisitions or departmental purchasing decisions. While multiple suppliers can provide flexibility, they can also dilute buying power.
Smaller order volumes spread across several vendors often mean less favorable pricing and fewer opportunities for production efficiencies. In some cases, consolidating suppliers or standardizing certain packaging formats can unlock better pricing simply by increasing order volumes.
A careful review of your supplier base may reveal opportunities to streamline purchasing without increasing risk.
5. Your supplier hasn’t suggested a cost improvement in a long time
A strong packaging partner should do more than just fulfill orders. Experienced suppliers often have insights into material options, design adjustments and manufacturing efficiencies that can lower costs while maintaining performance.
If your packaging supplier hasn’t suggested a cost-saving improvement in years, it may be a sign that your packaging program is operating on autopilot. Regular conversations about design optimization, material alternatives or production efficiencies can often uncover savings that might otherwise go unnoticed.
In many cases, suppliers who actively collaborate with buyers on these improvements become valuable long-term partners.
A simple review can go a long way
Packaging costs rarely jump dramatically overnight. More often, they increase gradually through small inefficiencies that accumulate over time. Without periodic reviews, those increases can become part of the normal cost structure.
By stepping back and evaluating pricing benchmarks, specifications, ordering patterns and supplier relationships, packaging buyers can often identify opportunities to reduce costs while maintaining the quality and performance their products require.
At RTi Global, we work with procurement teams to bring greater visibility to packaging specifications and supplier pricing, helping them make more informed sourcing decisions. Often, a simple checklist is all it takes to start asking the right questions about packaging costs.
