How Packaging Helped Companies Weather the 2009 Economy

Thu November 12, 2009

Packaging Strategies for a Difficult Year 

This year, manufacturers and distribution centers were up against the most difficult business conditions we've seen in decades. Packaging, like all other facets of business operations, were given tremendous scrutiny in an effort to trim cost, increase productivity, and improve customer satisfaction.

Working with firms of all sizes across many industries, we participated in a wide variety of approaches to packaging process improvement. While every application is of course unique, we noticed several common elements in the most successful programs. 

Strategic Approach. Effective programs started with a high level review of packaging as a whole. Cost saving measures were considered from all points of view, ensuring that obvious savings would not be offset by inefficiencies created in other areas of the business. In some situations, a strategic approach extended beyond the individual operation. Our National Accounts team was developed to help multi-location firms develop national packaging programs. 

Packaging Automation. Despite reductions in capital budgets and a general reluctance to spend, forward thinking firms moved ahead with efforts to introduce packaging automation, even if scaled back from their "perfect world" plans of action. Equipment refurbishing, retrofits, line reconfigurations, and scheduled maintenance programs - along with new packaging equipment installations - conserved labor, increased throughput, reduced downtime, and produced more secure shipping units.

Smarter Packaging Materials. Rather than shift to inferior packaging products and corrugated containers, successful programs moved to products with better design and performance characteristics. This enabled companies to reduce damage and per-unit packaging cost - in many cases without increasing the purchase cost of the packaging materials themselves. Companies relied on our extensive selection of high performance packaging materials and our Packaging Design Centers for new alternatives. 

Emphasis on Integrated Packaging Management. Efficiencies and cost saving opportunities abound in facets of packaging that go beyond packaging products. Many programs succeeded due to focus on such things as packaging procurement, inventory management, and material handling. Our STAMP Packaging Management Group was created to assist in this area.

What will the keys to success in packaging be next year?  That will be the topic of an upcoming article, but one thing we are sure about: companies that improved packaging in 2009 will be in the best position to maximize whatever opportunities 2010 brings.