When you look to reduce packaging costs, the most common first step is to look at the price per unit.
That makes sense because it’s the way it’s always been done.
But what if the traditional way is actually not the best way?
When you begin chasing the lowest price point, a natural progression occurs: Procurement sees a lower box cost and checks the savings column. But operations sees downtime. Marketing sees brand inconsistency. Finance sees freight creep.
And suddenly that “cheap” packaging doesn’t feel like you saved you much at all. In fact, it’s probably about to cost you a lot of extra meetings.
The question isn’t:
What does this box cost?
The question is:
What does this packaging cost the business over time?
That’s where Total Cost of Ownership Packaging becomes the conversation that matters.
Sources include:
Morrisette
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