2024年快速消费品包装成本优化的七大策略报告（英文版）-GEP

Thefast-movingconsumergoods(FMCG)sectorcontinuouslyseekscost-efficiencyopportunities,andthespotlightoftenlandsonanunexpected

contender:packagingexpenditure.

Forindustrieslikefoodandbeverages,

packagingisnotjustalogisticalnecessitybut

alsoasignificantexpense,oftenaccounting

forupto30%ofdirectcosts.Inlightofthese

substantialcosts,identifyingstrategiestoachievecostsavingsisacriticalpriorityforcompanies,

especiallygiventhevaryingglobaleconomicconditions.

Aseconomicheadwindspersistandthequestfor

savingsbecomesparamount,GEPoffersseven

actionablestrategiesforcontrollingpackagingcosts.

9GEP

ActionableStrategiesforPackagingCostOptimization

1.EmbraceLeanPackaging:

Delveintoyourpackagingprocesswithaleanmindset.Questionthenecessityandcustomervalueofeachelement.Overhaultheentire

packagingprocessbyeliminatingunnecessarycomponents,choosingsuitablematerialsto

preventoverpackaging,andreducingweight

andgauges,amongotheractions.Thisapproachhasconsistentlyledtosavingsof5to10%

forcorrugatedboxesand2to6%forflexible

packaging.Moreover,theshifttomoresustainableandcost-effectivematerialslikecartonsovertin

boxesisamovementworthjoining.

2.EngageUpstreamSuppliers:

Engagingwithtier2suppliersiscrucialbecauseof

thesignificantshareofrawmaterialcostsinthetotalcostofownership(TCO).For

instance,incorrugatedpackaging,papersheets

accountforabout50to60%ofTCO,whilein

flexiblepackagingit’sapproximately50%.Fosterrelationshipswithupstreamsupplierssuchas

papermillsforpaperboard,andfilmmanufacturersorresinproducersforflexiblepackaging.These

relationshipsprovideaccesstoindustrytrends

andcutting-edgetechnology.Directengagementensurestailoredrawmaterials,particularlyfor

primarypackaging,enhancingproduct

compatibilitywithcustomizedtextures.Moreover,thisapproachleadstomorecost-effectivepricing,strengtheningtheresilienceofthesupplychain.

3.OptimizeDemandManagement:

Setupcosts,particularlyprevalentinflexible

packaging,canconstituteupto20%ofproductionexpenses.Thesecostsariseduringthepreparationofproductionequipmentandprocesses,often

withoutyieldinganytangibleproducts.Toaddress

thisissue,itisessentialtoenhanceforecasting

SEVENEFFECTIVECOSTREDUCTIONSTRATEGIESFORFMCGPACKAGING

accuracyandoptimizeorderplanning.Improved

forecastingresultsinmorepredictableorders,

reducingtheneedforadhocordersandfacilitating

theestablishmentofbetterminimumorderquantities.Additionally,byproactivelysharingrollingforecasts

withsuppliers,theycanadjusttheirproduction

schedulesaccordingly.Thisproactiveapproachhelpssuppliersreserveinventorywithfewersetup

requirements,ultimatelyminimizingwaste.Asaresult,operationsrunmoresmoothlywithreducedcosts.

4.NegotiateLong-TermContracts:

Formostpackagingcommodities,it’sadvisabletoenterlong-termcontractsspanningtwotofour

years.ItprovidessupplierswithvisibilityforbetterplanningandhelpsthemefficientlyplanproductionwithenhancedqualityandROI.Fromthebuyer’sperspective,long-termcontractsboostnegotiatingleverage,facilitatingeconomiesofscaleforhighervolumes,andenablesupplierstoofferlower

contractprices.Thiscreatesamutuallybeneficial

scenarioforbothpartiesinvolved.Moreover,longercontractsfostermatureclient-supplierrelationships.Amajorityofbuyersfavorlong-termengagementstoensureconsistentsupply.

5.EstablishTransparentPricing:

Establishadetailedpricestructurethat

encompassesmaterial,laborandconversioncosts.Thisispivotalinidentifyingcostdriversandensuresfaircomparisonsamongsuppliers.It’scrucialto

pinpointthekeyfactorsdrivingcostincreases,and

tolinkpricestoatrustworthyindexandestablish

apre-definedreviewmechanism.Takecorrugated

boxesasanexample:bothmaterialcomponentslikepaperandnon-materialcomponents,includinglabor,ink,starch,gasandoverheadcosts,canbetiedto

benchmarkssuchasthepulpindexandthe

2

9GEP

SEVENEFFECTIVECOSTREDUCTIONSTRATEGIESFORFMCGPACKAGING

consumerpriceindex.Thisapproachallows

forpriceadjustmentsthroughpredetermined

mechanismsinreactiontoshiftsintheseindices,ensuringafairandtransparentpricingmodel.

6.PromoteLifecycleManagement:

Encouragingrecyclingacrosstheentirepackaginglifecycleishighlyadvisable.Forexample,work-in-processcorrugatedboxes,whichserveasstorageforgoodsintransitbetweenmanufacturingand

co-packinglocations,canoftenbereusedfourtofivetimes.Inasimilarvein,cartonboxescanbetransportedinplastictoteswhenmoving

betweensuppliersandproductionfacilities.Thispracticeresultsinsubstantialcostsavingsandsignificantlyreduceswaste.

7.LeverageeAuctions:

eAuctionsareapotentmechanismtoleverage

marketdemandandexploitcompetitivedynamics

effectively.Thedeploymentofbiddingvia

auctionsnecessitatesaseriesofcrucialsteps.

Initially,duringthesetupphase,itisimperative

toformulateacomprehensiveeAuctionbidding

strategythatincludesconsiderationsforlot

strategy,auctiontypes,andtheestablishmentofoptimalauctionrules.Progressingtoexecution,itisvitaltofostercollaborationwithsuppliers

throughtrainingandmock-upevents.Thisis

followedbytheorchestrationofliveeventsandthe

provisionofstrategicrecommendationsforvariousdecision-makingscenarios.DrawingfromGEP’s

experiences,usingEnglish-languageauctionsinacompetitivemarketplaceoftenresultsinsavingsof5to20%,whichisparticularlybeneficial

fornewcomerstotheprocess.Nonetheless,theimportanceofenlistinganexperiencedand

proficientteamtocrafttheauctionstrategyand

managetheworkflowcannotbeoverstated,astheabsenceofsuchexpertisecouldleadtooutcomesthatfallshortofexpectations.

Conclusion:

ThepathtoreducingpackagingexpenditureintheFMCGsectorisfraughtwithchallengesbutripewithopportunities.Byadoptingthesesevenstrategies,

companiescannotonlynavigatethecomplexitiesofcostreductionbutalsoenhancetheiroperationalefficiency

andsustainabilityfootprint.Whetherit’sthrough

adoptingleanpackagingprinciples,fosteringlong-termsupplierrelationships,orleveragingtechnologythrougheAuctions,thepotentialforsavingsisimmense.

AsdemonstratedbyGEP’ssuccesses,thesestrategiesarenotmeretheoriesbutactionablestepsthathave

ledtosubstantialcostsavingsacrosstheboard.It’s

timeforFMCGcompaniestoreassesstheirpackagingstrategies,alignthemwiththeseprovenpracticesandunlockthedoortooptimizedpackagingexpenditures.

3

9GEP

SEVENEFFECTIVECOSTREDUCTIONSTRATEGIESFORFMCGPACKAGING

Turnideasintoaction.TalktoGEP.

GEPhelpsenterpriseprocurementandsupplychainteamsathundredsofFortune500andGlobal2000companiesrapidlyachievemoreefficient,moreeffectiveoperations,withgreaterreach,improvedperformance,andincreasedimpact.Tolearnmoreabouthowwecanhelpyou,contactustoday.

MichaelSeitz

VicePresident,Consulting,GEP

Michaelisresponsibleforbusinessdevelopmentandcustomerdelightin

China.Withmorethan15yearsofexperienceinprocurementadvisoryand

supplymanagement,hegrowsandguidesourChinateam.Hehasastrong

backgroundincostoptimization,procurementtransformation,procurement

systemimplementationandsupplychainstrategy.HehasspentoveradecadeworkinginShanghai.

LET’SCONNECT

4

DRIVES

NNOVATION

GEP®iNTEiGENCE

AUTHOR

JamieHao

connectwithGEP

GEP®deliversAI-poweredprocurementandsupplychainsolutionsthathelpglobalenterprisesbecomemoreagileandresilient,operatemoreefficientlyandeffectively,gaincompetitiveadvantage,boostprofitabilityandincreaseshareholdervalue.

Freshthinking,innovativeproducts,unrivaleddomainexpertise,smart,

passionatepeople—thisishowGEPSOFTWARE™,GEPSTRATEGY™andGEPMANAGEDSERVICES™togetherdeliverprocurementandsupplychainsolutionsofunprecedentedscale,powerandeffectiveness.Ourcustomersaretheworld’sbestcompanies,includingmorethan550Fortune500andGlobal2000industryleaderswhorelyonGEPtomeetambitiousstrategic,financial

andoperationalgoals.

AleaderinmultipleGartnerMagicQuadrants,GEP’scloud-nativesoftwareanddigitalbusinessplatformsconsistentlywinawardsandrecognition

fromindustryanalysts,researchfirmsandmediaoutlets,includingGartner,Forrester,IDC,ISG,andSpendMatters.

GEPisalsoregularlyrankedatopprocurementandsupplychainconsulting

andstrategyfirm,andaleadingmanagedservicesproviderbyALM,Everest

Group,NelsonHall,IDC,ISGandHFS,amongothers.HeadquarteredinClark,·NewJersey,GEPhasofficesandoperationscentersacrossEurope,Asia,

AfricaandtheAmericas.Tolearnmore,visit.

GEPSMARTisanAI-powered,cloud-nativesoftwarefordirectandindirectprocurementthatofferscomprehensivesource-