Packaging is a complex aspect of product and material production and logistics for most companies. Not only does packaging protect its contents, it plays an important role in branding, and meeting sustainability goals.
Anyone who’s spent time sourcing packaging materials, from boxes and foam to stretch film and custom printing, understands that there are many moving pieces to manage. Finding a reliable supplier that can meet your needs with the right type of packaging at the right time can be a challenge.
Here, we’ll look at how working with an inclusive, one-stop packaging supplier for vendor managed inventory (VMI) packaging services can simplify procurement, production, and logistics.
The Challenges of Disjointed Packaging Solutions
One of the biggest obstacles to smooth packaging and logistics is inconsistent availability of materials. Working with multiple providers means your team needs to juggle different suppliers, portals, and protocols to acquire all the required materials. Suppliers may also differ in their scheduling and reliability, which can create more turbulence. For example, you may end up with an excess of one material and a shortage of another, which complicates inventory storage and ordering plans.
The quality of packaging materials can also differ between vendors, which risks damage to your products during shipping or warehouse storage. Suppliers may also change the specifications of their products because sometimes their own suppliers run low on stock or discontinue packaging products.
Instead of keeping track of each type of packing material, vendor, and your in-house inventory levels, it may make sense to switch to a single supplier for your packaging needs.
Benefits of a One-Stop Packaging Partner
Working with a single procurement packaging partner for VMI services instead of multiple vendors for each type of packing material is simply good for business. Consider these immediate and long-term benefits of making the switch.
Simplicity
With a single point of contact and only one billing system to manage, your team can see significant time savings compared to juggling multiple contacts and online ordering systems. What’s more, your purchase history, inventory, and total supply chain is visible from one screen.
Cost-Effectiveness
Working with a procurement packaging supplier also saves you money. Most end-to-end suppliers purchase their materials and products in bulk at a discount, which means they can pass those savings onto you. As a result you may pay less by bundling all your packaging with a single supplier, and may even be able to negotiate better terms when your contract is larger.
Your organization also indirectly saves money by having a more comprehensive understanding of your budget and spending levels. Savings from packaging can often be diverted to other aspects of operations to reduce costs or make improvements.
Control
VMI allows you to see your supply chain processes as a whole, so it is easier to track how the moving pieces come together. That helps keep things from slipping through the cracks and avoids the need to scramble to find a substitute material if one of your multiple vendors suddenly discontinues a product.
Better Quality and Reputation
A total packaging supplier helps ensure you have exactly the right materials and packaging process equipment for handling every order and product. This makes it easier for your staff to reduce product damage, increase customer satisfaction, and drive customer retention and referrals.
Better Service and Support
VMI programs provide more support and attention because they are coordinating multiple types of packaging products and materials for each customer. In contrast, when packaging supplies are divided among multiple providers, it’s more difficult for each one to be responsive to your unique requirements.
Another advantage is that for VMI to work, the provider must have a close understanding of your products, process, and business. This means they know not just what materials you need, but why you need them and how they are used.
Optimized, Efficient Manufacturing
As part of the holistic insight into your packaging needs, your supplier may be able to audit your process and equipment and find opportunities to save time and money. Their insight into the packaging industry and new innovations can help you reduce waste, stay productive, and improve sustainability.
Access to Industry Forecasting
Vendor managed inventory programs also include forecasting, which helps you plan for scaling production up temporarily or permanently, adding new products, or changing specs for packaging materials.
Combined Procurement and Packaging Services With Alpha Packaging
At Alpha Packaging, we partner with businesses as an end-to-end solutions provider for procurement and packaging. Our comprehensive selection, delivery, and inventory management lets you focus on your core competencies instead of the status of multiple packaging orders. The key benefits of working with Alpha Packaging are:
- Real-time stock monitoring. By monitoring your inventory levels in real time we can determine usage patterns and accurately forecast your stock needs over time. This data allows us to right-size your packaging inventory so you don’t run out early but also don’t have an excess of materials to store.
- Cost control and savings. We can help you set optimal inventory levels to reduce costs and streamline holding costs without jeopardizing operations or productivity.
- Efficient processes. Our team can analyze your current packaging procedures to find opportunities for more speed, lower costs, and greater consistency.
- Better space utilization. When you right-size your packaging inventory to your production levels, more facility space can be freed up for production, new services, or more efficient workflows and layouts.
- Warehousing and fulfillment strategies. You also have the option to store your inventory in our extensive warehouse instead of in your facility to reclaim space in your building. Deliveries are pre-scheduled yet flexible to accommodate fluctuations in supply and demand.
- Bulk and on-demand delivery. We provide bulk and on-demand ordering so you have the materials you need when you need them.
Contact Us Today to Get Started
Making the change to smarter packaging and procurement solutions makes your entire business more efficient and lets your team focus on their most important tasks. At Alpha Packaging, we can transform your packaging procurement, management, and inventory processes with our VMI program. Reach out today to learn more about the benefits and to schedule an initial meeting, or request a quote for pricing details.