Written by Gregg Schuliger, Director of Packaging, Millcraft Paper Company
Recently, I was called into a large manufacturing company to learn they had contracted out their packaging spend to a consulting firm. When I asked them questions relative to their goals and how they were going to measure their client’s success, the consultant simply said, “We’re going with the lowest price on each item.”Scenarios like this play out every day as companies line up at the starting line to participate in what I call, “The Race to Zero.” Here’s my advice- BE A LOSER and refuse to WIN the race to zero!
During our discovery phase, the large manufacturing company thought they were paying for one item and, in reality, were paying for something else. Older equipment and tight workspaces did not allow an opportunity for an increase in workflow, resulting in status quo productivity. In essence, though they had low pricing on packaging items, their cost of manufacturing actually rose! Lowest price per product was preventing them from maximizing their profit per product! Hence, they were racing to ZERO!There are options available to you other than spending millions of dollars to hire outside consultants only to have them tell you to put your packaging expenditures out for auction. In our time with clients and prospects, we help you uncover impactful opportunities that save money, increase productivity, and positively impact profit.
Often, accepting the status quo can be human nature’s enemy! The first question you must ask yourself is how does your packaging fit into your company’s long and short-term goals. The second question is do you really want to win the race to zero?Refuse to WIN the Race to Zero--- the one race where it’s OK to be a LOSER!