When deciding to purchase packaging materials, there are several factors to take into consideration, from prolonged lead times to the numerous global supply chain issues affecting today’s globe.
If you don’t, you might not be able to get the packaging supplies you desire or, more significantly, require to run your business. Nevertheless, you can effectively avoid the many unforeseen issues that could result from making poor packaging material choices.
Let’s go through some of the most common mistakes many businesses commit when sourcing their packaging supplies, creating problems in their business operations in the long run.
Take a Look at The Most Costly Packaging Mistakes Businesses Make
The task of procuring packaging is just one small component of the many obligations that procuring managers must perform.
A few weeks before the materials have to be used on their product, many marketers will browse the internet for the supplies they require, select the most economical option, and make their order.
Let’s take a look at the issues you need to avoid when purchasing packaging supplies so you can learn and prevent any costly situations for your business.
Purchasing Based Only on Cost
This error is another common mistake that packaging buyers make these days. Another common error that several packaging buyers make nowadays is buying packaging materials only on price.
Many believe using the cheapest materials available would be the best way to cut costs when purchasing packaging supplies. And this occasionally does help people save money, but more commonly than not, the opposite is true.
There is an old saying that we get what we pay for. A quick internet search can quickly reveal the cheapest packaging supplies you require. And while it would seem like a great strategy to cut expenses to spend as little as possible, this is often not the case.
Going for the cheapest alternative will almost always end up costing much more in the long run. This is because the cheapest packaging supplies are often made of low-quality materials, and these materials make for poor-quality packaging resulting in mechanical difficulties and breakage.
Sometimes, overlooking the small details creates a big ripple. For example, saving on labels and purchasing paper labels instead of plastic labels spells disaster, especially if your applications require moisture-proof or waterproof applications.
Therefore, even while quality packaging materials may cost more upfront, the money you will save by eliminating the aforementioned unpleasant difficulties will almost always translate into a reduced cost overall.
Making an Order Following Previously Announced Price Increases
Packaging costs have risen over the previous several years and are anticipated to continue doing so in the future. Over the past several years, the cost of different packaging supplies has climbed more than half a dozen times as a result of obvious challenges, such as global conflict, pandemics, natural catastrophes, labor shortages, and other related occurrences.
Every time these costs rise, we are informed about it at least a few weeks or months beforehand. Clients and potential customers are notified of these price hikes and encouraged to make purchases right away in order to receive the reduced pricing for the packaging supplies they require.
But as it turns out, a large number of buyers decide to postpone their purchases until after the price hike. They complain endlessly about the additional prices they must pay in addition to this. Suppliers find this distressing, which is why they give out warnings of price increases to encourage manufacturers to make purchases sooner the next time.
Let’s say you don’t want to spend additional money on your packaging materials. In that situation, it would be wise to consult a packaging specialist to learn the current pricing of the packaging materials you require and any potential price increases. By doing this, you’ll be able to buy before the price goes up and save money for your company.