Reducing costs through packaging supplier consolidation
We know it’s a tough time for businesses and that many are looking for ways to reduce costs. This week we thought we’d talk about the benefits of consolidating packaging suppliers and the positive impact that can have on your packaging operation and business costs.
If you are working with multiple suppliers, it can be problematic to manage the administration of order placement, goods-in and invoicing with a reduced team in place.
CIPS (Chartered Institute of Procurement and Supply) calculates that the average cost of placing a Purchase Order is £50 each time. This takes into account the management of orders, invoices, utility and labour costs. If you are dealing with many different packaging suppliers and raising weekly or monthly purchase orders with each of them, it is definitely worth investigating how much this costs.
If you can consolidate your supplier base and switch to a single supplier to deliver all of your packaging requirements, you can reduce the workload – and costs involved – significantly.
Order placement can be dramatically reduced by raising a single standard PO each month and switching to monthly consolidated invoicing paperwork, this means administration is reduced to a minimum.
The impact on goods-in is also powerful as you are reducing the number of delivery vehicles to the warehouse and simplifying the handling of goods for unloading.
Tracking orders, managing forecasting, reporting and identifying packaging waste also becomes easier – all of your data is potentially generated from a single source.
If you are struggling to manage packaging management with team members working remotely, you may be interested in reading our blog “How to minimise the impact of remote working on your packaging procurement team”.
Macfarlane Packaging sells the widest range of packaging and works with customers to reduce operational costs every day with our Significant Six approach. Contact us today to find out how we can support your business.