Reducing your packaging costs can provide significant cost reductions for improved profitability. It is worthwhile to evaluate all expenses and consider alternatives such as using a contract packaging company.
Packaging costs include the expenses for various packaging materials as well as all required labor and are an important part of overall production costs. Packaging is an integral part of producing products, whether manufacturers are shipping corrugated to other companies or creating beautiful packaging to appeal to consumers. For business to consumer (B2C) companies, appealing to consumers with colorful packaging and catchy phrases might be what sells their product the first time, but the quality of product inside is what creates future sales.
Packaging is unavoidable, but there are things that companies can do to reduce their expenses without jeopardizing product quality or brand recognition.
Factors That Contribute to Higher Packaging Expenses
Analyzing your overall packaging expenses periodically is definitely a worthwhile exercise that can deliver significant cost savings. New materials may have come on market since you last evaluated your packaging process or there may have been advancements in automated equipment. Considering outsourcing your packaging to a contract packager is another option to save money and maintain product quality.
Whatever your analysis reveals, looking at your packaging with a holistic view of your current processes including all purchasing and storage of materials, labor expenses, cost of automated equipment, and footprint of packaging work areas that take up capacity is the only way to know your true packaging costs. When you take a good hard look at all of your packaging expenses, you will discover valuable cost-saving opportunities that increase your bottom line.
Factors that contribute to increased packaging costs include:
Bottlenecks in the packaging process
Inefficient storage and retrieval of packaging items
Ineffective packing materials that allow damage
High shipping costs
Using larger packaging boxes the necessary
How to Reduce Your Overall Packaging Expenses
Here are some things you can do to reduce your packaging expenses:
Evaluate purchasing and inventory of packaging materials – obviously, cost comparisons must be completed to compare vendors for the many packaging materials used in your packaging processes. Packaging materials include a wide variety of items with many types of each item in various categories such as:
Corrugated boxes of various sizes
Sealing materials such as tape and shrink wrap
Plastic bags of all sizes with various features such as zip lock, adhesive or drawstring closure
Packing paper such as brown paper or crepe paper
Packing materials for stuffing such as Styrofoam, filled air bags and bubble wrap
Check price comparisons and check inventory reports and return on inventory analysis to ensure your purchasing processes are efficient.
Consider the layout of your warehouse – evaluate the layout and flow of goods throughout the warehouse to look for inefficiencies such as any backtracking from receiving through shipping.
Improve packing time with automation – automating your packaging line will increase your output with improved picking and packaging, improve your brand recognition with precise, perfectly packaged products, and reduce your carbon footprint as automated systems use only the exact amount of material needed.
Use smaller boxes – using boxes larger than necessary for your product is one of the biggest money wastes in packaging.
Outsource to contract packager – speak with a contract packaging company and you might be surprised when you compare your current total packaging expenses to that of a contract packager. Outsourcing your packaging allows your business to focus on your niche market and devote floor space to what you do best.
Peoria Production Solutions offers contract packaging services with more than 80 years of experience and a highly skilled staff. We utilize automated packaging equipment and provide many secondary services such as bag filling, bottle labeling, auto bagging, palletizing, and more. Contact PPS, an ISO9001:2015 registered company and set apart from other contract packaging companies to provide the greatest value with high quality service that can reduce your packaging costs.
There are many different levels and types of packaging, each with a specific purpose. For any company that packages their products, it is important to distinguish between the different types of packaging which include primary, secondary, and tertiary. Each of these levels of packaging are intended for different purposes.
Types of Primary Packaging
Primary packaging includes packaging materials that come into direct contact with the product that you are selling. Primary packaging protects or preserves your goods for optimal condition until removal. The first layer of packaging that contains your finished product such as the plastic bag that holds cereal inside the box would be the primary packaging. Another example of primary packaging would be a small glass bottle that contains oil or tincture. These small glass bottles would be packaged into a cardboard retail box, which could arguably be primary packaging but also serves the function of secondary packaging.
Primary packaging for fast-moving consumer goods would be a bag, pouch, foil bag, bottle, can, or jar.
Types of Secondary Packaging
Secondary packaging pulls all primary packaging forms together into a single product such as group packaging. Secondary packaging would be a large box or container that holds several smaller boxes that make it easier for storage or shipping. Secondary packaging is designed to optimize efficiency and typically contains a specific number of units. Types of secondary packaging help to maintain the integrity of primary packaging and are highly useful for e-commerce. Secondary packaging typically includes multiple components such as separators, padding, and reinforcements.
Types of Tertiary Packaging
Tertiary packaging is to secondary packaging, what secondary is to primary packaging. Tertiary allows for safe and efficient movement of secondary packaged products at scale. Tertiary packaging ensures that minimal space is used during storage and protects products from environmental hazards. Tertiary packaging should allow for efficient movement like with forklifts or pallet jacks.
This type of packaging may also be referred to as transit or bulk packaging, typically used to group larger quantities of products for transportation from one point to another.
Secondary Packaging Provider Makes All the Difference
Working with an experienced secondary packaging provider makes a big difference in not only the safety and security of your products but for marketable, display ready packages. An experienced packaging provider like Peoria Production Solutions, PPS, can offer suggestions as to the best type of secondary packaging for your product and provide customized packaging services to meet your specific needs.
PPS offers a wide range of secondary packaging services including POP display, clamshell packaging, sample kits, club packs, kit assembly, cello wrapping, pouch and bag filling, gift set packaging, and repackaging. PPS offers more than 80 years of experience in providing customized packaging solutions with a skilled and experienced team dedicated to your total satisfaction.
Peoria Production Solutions is a leading Midwest provider of secondary production and packaging solutions. We follow a strict quality policy with top-down involvement, investing in our staff with ongoing training and personal development. Contact us to learn how to improve your supply chain with an experienced secondary packaging provider on your team.
Controlling the costs of packaging is always an important consideration for manufacturers or any company packaging products. In addition to the cost of corrugated, the cost of shrink wrapping is one of the largest packaging expenses for many companies. Here are some tips on how you can evaluate your shrink wrap packaging to maximize savings.
Reduce Your Bag Length
Measure your shrink bag from one end to the other. If you can reduce your bag length, even by an inch, this will make a considerable difference with savings. For example, if you reduce an 11-inch bag down to 10-inches, you save about 9% immediately. Many companies that perform this exercise find that they are using more film than what is required for each package.
Reduce Shrink Film Width
Shrink wrap film can be ordered in less than 1-inch increments. You might find that you are using a 24-inch bag when you only need 23.5-inches. Just cutting down 1/2–inch can save considerably on shrink wrap expenses.
Maximize Overall Length
By going long and maximizing overall length of your shrink-wrap film, you can keep production running longer and reduce the amount of changeovers. Increase your uptime and reduce shipping expenses with less deliveries.
Reduce Shrink Wrap Film Gauge
Shrink wrap film today is available in a wide range of thickness sizes with more possibilities than traditional film. New technologies offer the same performance in a smaller gauge film. Talk to your film supplier to see if downgauging is an option for you. You might find that you can move from a 60 gauge down to a 38 gauge and save a considerable amount of money with the same integrity.
Reevaluate Your Film Choice
Evaluating the possibilities to reformulate your shrink wrap is something you should do regularly with your packaging supplier. New products come on the market all the time which may be a better fit for your product.
Audit Your Film Packaging Line
Perform a meticulous audit of your packaging line. Applying the principles of efficiency audits like value stream mapping (VSM) can help you to pinpoint areas for improvement. By understanding the exact time and place in your process where any efficiencies or bottlenecks occur, you can take corrective action to fix your weak spots.
Following all of these tips can help you to reduce the cost of your shrink wrap packaging expenses and improve efficiencies in your packaging process. For more tips on improving your packaging, contact an experienced contract packager like Peoria Production Solutions.
Midwest Packaging Provider Improves Your Bottom Line
Peoria Production Solutions, PPS, has been providing solutions to manufacturers and companies of all sizes for more than 80 years with a full line of customized, secondary services. We offer contract packaging, wrapping, bag filling, bottle labeling, kitting and assembly, sewing and fabrication, and more. Our experienced team can offer suggestions for your packaging that improve your efficiency and bottom line.
PPS is a leading provider of secondary packaging services to some of the largest companies including Fortune 100 manufacturers. We follow a strict quality policy as part of our ISO 9001:2015 registration for high-quality services with quick turnaround time. Contact us with any questions on improving your packaging for greater efficiency and cost savings.
Packaging is a lot more than wrapping your products for safe storage or delivery. Packaging has evolved into becoming part of the business plan, becoming particularly important to the marketing department. Packaging holds the ability to reflect your company’s brand, mission, and entire vision. Ignoring the impact that your packaging has on your consumers or customers can be a costly mistake.
So how do you incorporate packaging into your marketing plan? What are the most important considerations when integrating packaging with your marketing efforts? And most importantly, how can you enhance your approach to marketing and brand awareness through packaging?
How to Incorporate Packaging into Your Marketing Plan
It takes some planning to ensure that your packaging is leveraged to generate leads aligned with your marketing initiatives. Packaging can be an excellent marketing tool and may often be an afterthought when planning other marketing activities. Things like developing a website, maintaining social media connections, providing value to your audience through content such as white papers, brochures, or ads – these are all things we think about when we think about marketing.
Marketing with Eco-Friendly Packaging
While all of these things are an important part of successful marketing, considering your packaging is a critical aspect of your marketing plan and overall business plan. Packaging plays a direct role on your impact to the ecosystem, whether you can package your products in eco-friendly materials such as with more biodegradable paper as opposed to plastics. If this is important for your audience, it is important to relay that message on your packaging.
Increasing Brand Awareness with Packaging
How many times have you walked into a store, whether a convenience store, a department store or food market, and purchased something that you had no intention of buying when you walked in? For most people, this has happened too many times to count. The reason that consumers buy something they had no intention of buying, is almost entirely due to the packaging. Whether it is a catchy phrase, inviting colors, or something they might use later but feel like they just better grab it now, packaging can be the key that converts shoppers to buyers.
Peoria Production Solutions, PPS, is a leading provider of packaging solutions including secondary packaging solutions such as point-of-purchase, POP, display packaging, club and variety packaging, and labeling services. We have been providing contract packaging solutions for over 80 years, as a fully sustainable not for profit organization. PPS employs individuals with alternate abilities with a mission to provide financial and social stability and independence.
We follow strict quality policy as part of our ISO9001:2015 registration including a commitment to continual improvement and total customer satisfaction. We provide this through employee training and development programs, and lean manufacturing for maximum efficiency with exercises such as Value Stream Mapping, VSM, and cross-training to avoid bottlenecks in all work processes.
PPS understands the importance of high-quality packaging and the impact this has on our customers’ marketing initiatives. We can help you to evaluate the various packaging methods such as clamshell, variety packs, sample kits or other packaging options.
PPS is a leading Midwest supplier of secondary production services including contract packaging, shrink wrapping, labeling, contract sewing, auto bag filling, and other packaging services. We offer more than 80 years of experience, a state-of-the-art facility with the capacity to dedicate assembly lines to your work process and a skilled work staff. Contact us to learn how to improve your supply chain with contract packaging aligned with your marketing initiatives.
As 2021 came to a close and businesses started preparing for the new year, many companies want to know about new packaging trends for 2022. The global pandemic that began in early 2020 has changed the way that companies across many industries operate their business. Businesses today have new considerations that they did not have a couple of years ago such as how to manage new, internal work processes to keep products and employees safe and how to meet consumer demands with a disrupted supply chain.
Producing the same products can now cost companies more in order to address these challenges and then companies have to consider how to get their products on the market in the midst of a changing consumer landscape. Packaging and distribution is a huge part of manufacturing and production for any industry. Getting your goods to your destination, whether shipping e-commerce and delivering directly to consumers or stocking shelves at big box stores, might take a little more planning than before.
Businesses are looking to address these challenges with packaging trends for 2022 such as:
Packaging designed for e-commerce as well as stock shelves
Right now, many businesses are just concerned with keeping their assembly lines running. Whether due to a short staff or short supply, companies are restructuring and focusing on their core or niche manufacturing and how to stay profitable. An experienced contract packaging company like Peoria Production Solutions, PPS, offers just the solution many businesses need with affordable, timely, and high-quality contract packaging services.
Packaging automation is another trend that is helping companies to address the tight labor market. Incorporating automated packaging equipment and technologies helps to meet delivery demands and promotes a safer environment that helps reduce the spread of disease. PPS utilizes automated packaging equipment whenever possible such as auto filling and bagging equipment, digitized scales, and labeling, used in conjunction with our automated Enterprise Resource Planning (ERP) system.
Our ERP system provides automated tracking of all customer supplied and packaging materials with full lot number traceability for complete accountability. Our modern, state-of-the-art facility provides the capacity needed to set up customized packaging processes to meet our customer needs with high quality, efficient contract packaging.
Transparent packaging is a new trend that is becoming popular with consumers. Transparent, flexible pouches that feature a window give consumers a chance to see what is inside without opening the package. Transparent flexible packaging can be used in many different industries like the food industry for example to package baked goods including rolls and bread. Polybags are nice to protect magazines, mailers, and products like pillows and bedding. Whatever companies are selling, transparent packaging is a popular trend that is here to stay.
Packaging Designed for E-Commerce and Stock Shelves
With the change in the consumer landscape such as the increase in online ordering and e-commerce delivery, packaging today needs to do double duty. Packaging trends include designs that catch the consumer’s eye on a stock shelves and hold up to direct shipping and delivery. Some companies are getting creative with the less is more attitude, using large fonts, single and simple colors with direct marketing.
PPS offers the staff, equipment, the capacity, and experience to meet your contract packaging needs and incorporate the latest packaging trends. We offer a range of wrapping and packaging services including auto bagging, bag filling, bottle labeling, flexible packaging, palletizing services and more. Contact us to improve your supply chain with an experienced contract packaging company utilizing the latest technology to meet all the 2022 packaging trends.
Many companies outsource processes to a contract packaging company within their supply chain. Contract packaging, also referred to as co-packing or contract packing, is the operation of packing items for redistribution.
The contract packaging industry is a fast growing industry. Despite the COVID-19 pandemic, the industry has come back strong. According to the sixth edition of CPA, The Association for Contract Packagers and Manufacturer’s State of Industry Report, the CP industry is expected to grow at a “10.2% CAGR (compound annual growth rate) through 2025.”
Are you searching for a contract packaging partner who can help you to reduce processing time and costs? Peoria Production Solutions may be the right partner for you.
Experienced, Quality Contract Packaging Services
Outsourcing your packaging needs allows you to put your focus on the manufacturing side of the supply chain. PPS has been providing packaging solutions for companies of all sizes for more than 80 years. Trust us, we have your back. We understand that it is becoming increasingly difficult to remain competitive in various manufacturing industries. Therefore, we provide you with innovative solutions for processes that are challenging to do in-house. Utilizing a company that specializes in contract packaging allows you to focus on what you do best and saves you money in time and labor.
Our machinery, facility space, training, and equipment are all designed to provide packaging solutions. This makes all processes more efficient and cost-effective. Once we receive all materials, we track incoming inventory and set-up your process, we sort and package your products following a strict quality policy. Our facilities utilize various types of sealers and shrink tunnels. Our processes include labels, tags, and necessary work instructions.
Following these processes with required supplies can be costly. Outsourcing your contract packaging needs allows you to expand your production capabilities without investing in resources to do it yourself, while focusing on your niche market. With our contract packaging capabilities, we are a one-stop shop for our clients.
As a contract packager, PPS is highly experienced in finding packaging solutions. Our business model is based on improving your efficiency and speed. Our goal is jobs, not profits allowing us to be responsive on many levels.
Our success is based on meeting our customer’s standards and delivering performance results. Our business model sets us apart from other contract packaging companies as we are only concerned with our customer’s happiness and total satisfaction. We work with our customers throughout the process to ensure we are reducing processing time and costs.
The goal of PPS is to add value to every product and every relationship we touch, finding new ways to increase productivity and decrease overhead, making your business even more successful. Visit our website to learn more about our contract packaging services.
A quality operating procedure (QOP) is a written document composed of step-by-step instructions used to complete a routine operational task. These procedures help to achieve efficiency, performance, and quality control.
Quality Operating Procedures are important to ensure that production operations are performed consistently to maintain the quality of products and processes.
The purpose of operational procedures is to define systems, assign responsibilities and authorities, and provide instructions for carrying out activities comprising the quality system. Operational procedures explain the what, when, who and how for each activity; identify interfaces for the activity; and instruct who should be informed and how the results of the activity should be recorded.
PPS uses specific coding for our operational procedures such as QOP-SS-NN. QOP stands for Quality Operational Procedure, SS is the section in the quality manual to which the procedure pertains, and NN is the consecutive number of a procedure for the section.
Importance of Quality Operating Procedures
1. Increases Business Productivity
QOPs can be beneficial for companies that produce the same product over a long period of time. PPS has been working with a Fortune 100 manufacturer for over 80 years. The procedures help to increase business productivity.
2.Processes Remain Consistent as the Company Expands
PPS is expanding so QOPs can make the work processes portable. Our new employees at the new location can uphold our reputation by using the same QOPs to replicate the products and services provided at the original location.
Standardized procedures help guide our employees and reduce the possibility of missed steps that impact the quality of the completed product. A QOP ensures that our customers’ products are created in the same way from start to finish every time, creating consistency with high-quality products.
4. Keeps Processes within the Company
Writing down procedures helps to keep key information with the company. This is beneficial when new employees take over a process and for cross-training of employees. It is important for the company to have a physical copy of all work instructions and procedures with documented alterations and continual improvements noted.
5. Better Time Management
QOPs are a valuable component for a new hire, ultimately reducing training time. As PPS expands, we will be hiring more employees. With specific work instructions, the quality operating procedure details the checks for quality personnel.
As an ISO registered company, we use Quality Operating Procedures to remain consistent when following strict quality guidelines. PPS promises to maintain the quality of our customers’ products. Visit our website to join our quality team.
Peoria Production Shop follows strict quality standards with processes in place to ensure an understanding of the process for high-quality results. As an ISO certified company, you can have confidence in our commitment to meeting your specifications. We use in-process inspection reports (IPIR) to identify problems as they arise and immediately take corrective action. Our highly trained staff use these reports to streamline the inspection process and ensure work orders are completed accurately.
Prior to the inspection process, the supervisor is responsible for processing the work order and preparing the work station for the operator. During this step, the supervisor will fill out the specific information for the job on the IPIR such as the sales order, part number, quantity of order, package quantity per carton (bag or container), and specific work instructions to be used. The IPIR sheet stays with the product at all times.
After the workstation has been properly set up, the supervisor will inform the quality inspector of the job or new operator. This step can happen at any time of the work day as work orders are completed or operators are shifted around the facility.
The Inspection Process
Take IPIR Report and random sample of product from operator’s work area
Check a minimum of 5-10 pieces (according to work instruction quality guidelines)
Document findings on IPIR sheet
Communicate those findings with operator
If product is non-conforming, the quality inspector talks to the supervisor. A supervisor must sign off on the IPIR sheet before work can continue.
Quality inspector repeats the process every 30 minutes.
Along with the IPIR sheet, the quality inspector carries a daily report sheet and a work instructions binder to each area that requires inspection. The quality inspector is solely responsible for identifying errors. The supervisor is in charge of correcting any issues with products or processes such as a machine or scale calibration.
The IPIR sheet helps the quality inspector to recognize any patterns. Since the in-process inspection sheet is used for the full duration of the work order, the quality inspector can draw conclusions about an operator’s ability to perform the task or the effectiveness of a machine.
At Peoria Production Shop, we strive to add value to every product we touch. Our quality team follows strict policies and procedures. If we find that a particular employee is better suited to perform a different task than the one assigned, we place our workers where they excel and perform to the best of their abilities. This policy has proven to be beneficial to ensure that we provide high-quality products, on-time and with consistency.
At PPS, we use in-process inspection reports and materials to aid in-process inspections and to ensure finished products meet customer specifications. We promise to do our part and take appropriate action as needed so our customers can succeed. Visit our website to see how we can further your company’s success as a value-added, quality supplier.
Value Stream Mapping (VSM) is a lean management tool used for analyzing the current state of all series of events in a process to produce a finished product from beginning to end, and then designing the most efficient series of events to provide the greatest value to that product and process.
Manufacturers use VSM which is a detailed flowchart method to identify all stages in the process typically down to seconds. This highlights the areas where improvements can be made such as quickly identifying any waste or bottlenecks in the process. VSM is a lean management tool that reveals downtime, inventory problems, and processing delays.
Customers care most about the value of the product or service rather than the efforts to produce it. Value Stream Mapping helps to illustrate value-added steps for manufacturers. It is an ongoing process used for continual improvement. The goal of Value Stream Mapping is simple, to eliminate waste and create the most efficient system possible, bringing the greatest value to that product’s process.
While manufacturers benefit from utilizing value stream mapping, those who benefit the most from the process are the customers. The customer experiences a better quality product through a more efficient system that ultimately meets their needs and expectations. Additionally, by reducing waste and expense, a contract packaging company can pass on savings to their customers as efficiencies improve.
Benefits of Value Stream Mapping
Benefit #1: Reveals the Most Efficient Process
The VSM clearly labels material and information flows from order entry, purchasing, processing, quality inspections and packaging to see the entire process through from beginning to end. Value Stream Mapping originates from the perspective of the customer, with all required steps to meet product specifications clearly defined. Essentially, we want to identify the processes that add the most value to the customer’s product in the most efficient way.
Benefit #2: Identifies Waste
The VSM encompasses the processes that a product goes through from start to finish. The value stream sequence identifies waste, or an action or step that does not add value to the customer. For example, the VSM can diagnose overproduction, unnecessary motion, or excess stock as waste. A customer will not want to pay for these wastes so the VSM can help the manufacturer better their processes and add value to the customer’s project.
Benefit #3: Improves Manufacturer
Value Stream Mapping helps to align the entire manufacturing company on common goals. All aspects of the company including upper management, operations, administration, and sales want to add value to the customer’s project. This common goal helps to prioritize improving the processes because it affects each company department at some level. Ultimately, Value Stream Mapping helps the company to analyze current and future production flows for improvement. When all stakeholders are in alignment, the manufacturing company can use their findings as an example for future projects and to benefit all customers.
Peoria Production Shop strives to add value to every product we touch. We use Value Stream Mapping to help identify waste and create the most efficient systems possible. Visit our website to learn how we can add value to your next project.
A contract packager, co-packager, co-packer, and contract manufacturer refers to a company that manufactures and packages products for their customers, usually the original equipment manufacturers (OEMs). The secondary packaging process is when various pre-packaged products are packaged together.
Co-Packing has become a competitive advantage for manufacturers. OEMs have the ability to take on large projects without the need for extra staff and equipment because they can outsource the packaging services. Companies are realizing many benefits of outsourcing co-packing and repacking for their products.
Money Saving Potential When Using a Co-Packing Company
Outsourcing allows for companies to utilize the co-packer’s existing space, technology, and staff. Also, companies can save on labor costs and overhead costs by not adding packaging staff and devoting capacity to packaging.
Contract manufacturers build relationships with raw material suppliers and other companies. These relationships allow the co-packers to provide lower costs because of their networking connections.
Peoria Production Shop has many capabilities allowing their customers a one-stop shop for all of their packaging needs. For instance, PPS has auto-labeling services, shrink sleeves, imprinting services for lot codes and expiration dates, heat sealers and more.
Co-Packers Provide Increased Efficiency
Co-packers specialize in efficiency and have an established processes for packaging production. Peoria Production Shop uses Value Stream Mapping (VSM) to identify and eliminate waste and create the most efficient processes which provide the greatest value.
Also, co-packers like PPS provide services in other areas such as kitting, sewing, mechanical assembly, cutting, finishing and more.
Save Time With Co-Packing & Repacking Partners
Co-packers have the ability to free up the original manufacturer’s time. Outsourcing contract packaging allows the OEM to focus on other areas like marketing and networking.
Freeing up the company’s time allows the co-packer to do what they do best. In fact, contract packagers have their own methods of quality control that can detect errors and damaged materials in addition to meeting all customer specifications.
Wider Skill Set In Outsourcing
Outsourcing projects to a co-packer allows the original manufacturer to be involved with true professionals in the industry. Certain co-packers have certain qualifications that set them apart from competitors.
Also, contract packers work with original manufacturers to share knowledge and pass along cost savings from their proven efficient processes. For instance, contract packagers might have more skills on handling material, designing the secondary process flow, or pricing from established vendors based on previous experience.
Outsourcing to a co-packer allows for businesses to spend time and money in other areas that grow their business. You can have confidence in Peoria Production Shop to add value to your packaging needs. Visit our website to learn more about our co-packaging capabilities.