Packaging Analysis

Our Approach

New-Tech instills our packaging professionals with a passion to create value in their customers’ packaging. Value creation begins with a packaging analysis for customers who desire to improve their packaging process and cut costs. Our professionals identify opportunities in workflow, automation and packaging design. The audit process is the foundation for saving money and increasing value.

  • New-Tech brings a packaging analysis team of two to six professionals to observe a company’s current packaging processes, layout and materials firsthand.
  • The time spent on-site allows us to observe, perform tests, and understand current operations — it ranges from a half-day to several weeks.
  • Afterwards, the team brings their diverse backgrounds, knowledge and experience into lively discussions to explore opportunities about to improve.
  • New-Tech presents its findings and ideas back to the customer in a detailed, prioritized proposal.

Authentic value creation only occurs when real answers are discovered and financial savings can be achieved. In these competitive times, suppliers have to earn the right to become part of the supply chain. We take this responsibility seriously, and and offer these case studies from our portfolio of results.

Packaging Analysis Strategies

Packaging is an expense, something that people throw away. It has a purpose, of course, but people make a purchase to obtain the product and the packaging has no value once the product is safely in hand.

Packaging expense is almost always a target, and rightly so. But like the tip of the iceberg, most people focus on the visible material costs and do not know how to address the larger, looming costs that are beneath the surface. Here are examples of the cost drivers we evaluate to discover and address the whole iceberg:

Labor costs
Evaluate manual or inefficient packaging processes, as well as other factors which impede productivity and increase labor costs. Explore automation.

Freight costs
Fight freight costs by reducing the package cube and associated dimensional weight, reducing or even eliminating empty spaces and voids.

Material costs
A packaging assessment can uncover opportunities for material savings by evaluating packaging specifications and then testing alternative materials and methods.

Design costs
Evaluate and improve upon poor retail, structural, tertiary, and point-of-purchase design to enhance the out-of-box experience and win customers, prevent damage, lower freight costs, and maximize marketing dollars and product sell-through.

Environmental costs
While many companies today view the environmental impact as a soft cost, increasing pressures will make these hard dollar costs. It is wise to identify environmental costs and begin to reduce these immediately.

Inventory inefficiencies
Evaluate inventory storage. Costs are incurred when inventory consumes valuable storage space that can be better used. Inventory ties up capital and raises insurance costs, as well.

Outsourcing opportunities
Businesses save money by outsourcing packaging projects when they lack the human resources, design expertise, packaging knowledge, automatic equipment, direct labor or adequate facilities to do it themselves.

Damage costs
Utilize the common and recommended practice of performing package testing by packaging professionals, including drop testing, compression testing and shaking to simulate movement in transit.

Finance costs
An often overlooked strategy is to roll finance costs into an ongoing supply agreement, thereby avoiding these charges altogether.

Ergonomic costs
Pay attention to the ergonomic costs seen in repetitive motion injuries and Workman’s Compensation claims, addressing the needs of fatigued, tired workers who are less productive and make quality errors.

Transaction costs
Reduce the workload and costs of sourcing, negotiating and ordering packaging materials by utilizing supplier resources and technologies to assist purchasers: blanket orders, Vendor Managed Inventory (VMI), online catalogs and supply agreements.

Opportunity costs
Identify and drive out opportunity costs, which arise from missed shipments, damaged products, inability to meet customer demands (lost sales!) and poor design.