With constant fluctuations in the economy, the demand for cheaper packaging grows stronger each day. But saving money doesn’t mean you have to sacrifice quality and sustainability.
Lately, the international supply chain has been under scrutiny. From risks posed by China’s zero-Covid policy to catastrophic weather events, the global economy is facing shortages and delays never seen before.
When it comes to your offshore packaging strategy, what are the benefits and what are the risks of engaging in a global supply chain? According to Bain & Company, most companies have supply chains that under perform, typically leaving 5-10 percentage points in potential gross margin gains—and often more—unrealized.
After months of research and tapping into our international packaging experience, we wrote a comprehensive white paper on how to optimize your offshore packaging strategy.
What We’ll Cover
While there are many other categories that may also benefit from sourcing from the Asian market, we have identified three categories that are perfect for capitalizing on the technology, material availability, and skilled labor found especially in mainland China:
- Consumer electronics packaging and packaging for specialty goods produced in Asia
- Premium product packaging
- Low-quantity special orders
Consumer Electronics & Specialty Goods Produced in Asia
An obvious choice, if your goods are already produced in Asia, it only makes sense to source your packaging solutions in that market as well. Your contract manufacturer most likely bundles the cost of packaging into the total project cost to give you the most competitive cost-per-unit quote.
However, your CM could bid out your packaging to other subcontractors, thus increasing your risks with misunderstandings and quality issues while decreasing your chances to customize your project based on your needs.
Premium Product Packaging
With the continuing evolution of e-commerce and the growth of direct-to-consumer products, companies and brands are quickly realizing the power of packaging. It doesn’t end when the customer clicks “Complete Order”; instead, it extends all the way to the customer’s home where they get their first interaction with the product. This focus on the unboxing experience highlights that the right packaging will not only elevate the whole customer experience, but also ensures that your product reaches the customer safely.
Low-quantity Special Orders
With the rise of brand ambassadors and micro-influencer marketing, custom low-quantity special orders are becoming more commonplace. However, you may quickly run into challenges related to staffing across small volume, high-complexity projects. McKinsey advises that “an agile supply chain workforce is comfortable working with and alongside advanced technologies, and personnel may need a wider range of skills so they can move between tasks as business needs change.”
Avoiding Expensive Surprises
The “total landed cost” is the total bill of material costs plus the cost of shipping and insurance, duties, and taxes. It is an important consideration when determining where to source products because it can affect profit margins significantly. To avoid unexpected fees, a reputable logistics provider can advise you on your total cost for freight, inclusive of all tariffs and taxes that will be incurred to receive your product.
Ready to discover how the right relationship with a global packaging manufacturer can be a competitive advantage for 2023 and beyond? We also include a checklist assessment to help you gauge the resilience and readiness of your offshore supply chain network. Get your free copy at the link below.
Download for Free Now
If you want to know more about Zenpack’s services
Let our packaging consultants help you turn your idea into reality.