Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

How to stop the next round of corrugated increases

Sadly you can’t. In fact there is as much chance to stop the sun rising tomorrow morning as have the muscle and power to push back on these increases. 
  
This month I have seen increases announced from both the biggest UK integrated paper and box plant companies and the regional sheet plant kings varying from 6% through to 12%,  typically only giving 2 or 3 weeks’ notice.
 
The fact is containerboard has risen by circa 50% since last autumn.  Furthermore there is not enough recycled containerboard to meet demand in Europe, stockholding is depleted some 10% on the same period last year and rationing is happening.  Prices are only going one way and that is up.
 
But there is a way to beat this inexorable trend.  If you are one of those unfortunate companies caught in this vortex step outside of the whirlwind and apply the following tests
 
1.      When did I last check the box sizing for the product?
2.      When did I last analyse the board grade v. the performance criteria
3.      When did I last review the order quantities
 
In summary these 3 questions encapsulate a LEAN management approach to all corrugated box requirements.  
 
Plus Packaging have found that you really can win in these troublesome times but please take care salesman often talk about value engineering; what really counts is what impact is that value making to your net profit – can you measure it? 
 
“We recently worked LEAN with a big automotive client and successfully reduced the inventory requirement from 300 pallets to 100 potentially saving £400 per week in storage costs alone, and that was before we looked closely at the specifications!” said Gerard Clayson sales director at Plus Packaging.  
 
So yes this next round of price increases can be beaten. Contact our packaging specialists to see how [email protected]



This post first appeared on Plus Pakaging, please read the originial post: here

Share the post

How to stop the next round of corrugated increases

×

Subscribe to Plus Pakaging

Get updates delivered right to your inbox!

Thank you for your subscription

×