CASE STUDY

Category Management Helps A Flexible Packaging Manufacturer Realize $18 Million in Savings

Mar 3, 2018

Overview of the Flexible Packaging Industry

Typically, flexible packaging is a non-rigid method of packaging, and flexible products are made from flexible materials such as aluminum, plastic, and paper.

The recent increase in the demand for healthcare, household, cosmetics and toiletries, food and beverages, sporting goods and other agricultural products industries is expected to drive the industry’s growth. Also, the shift in trends towards convenient packaging due to lightweight characteristics and ease of use may propel the growth of flexible packaging. Moreover, manufacturers are moving toward flexible packaging materials as it creates less waste due to lower utilization of crude materials and requires less storage room along with comfortable transport.

However, the growth of the flexible packaging industry is expected to be influenced by a few factors. These factors include:

  • Rising cost of raw materials: Plastic, paper, films, paperboard, resins, and adhesives are some of the standard raw materials used by the flexible packaging companies. In recent times, the flexible packaging industry has been affected by increasing prices of such raw materials. For instance, the increasing costs for polypropylene, used in bottles, packaging films, and resins have been on the rise owing to reduced supply for the materials.
  • Sustainability challenges: To improve packaging sustainability, flexible packaging companies have to account for designs which consider environmental issues and reduction of greenhouse gas and water footprints. Flexible packaging disposal and recycling methods can prove to be very costly as it consumes a significant amount of energy and water and creates emissions.

Many such factors are compelling flexible packaging industry firms to improve category management. Request a free proposal and access our complete portfolio of category management solutions.

Request Free Proposal

The Business Challenge and Journey

The client, a leading flexible packaging manufacturer with multiple manufacturing units spread across the globe, wanted to conduct a systematic analysis of sales performance, profitability, and customer metrics. This was because the client had had trouble in achieving growth and addressing margin problems. Moreover, the flexible packaging manufacturer wanted to implement a best-of-breed category performance improvement process to categories, a part of which involved devising a new approach to negotiating with key suppliers.

The category management experts at SpendEdge tailored a wide-ranging research methodology to help the client improve sales and margins and change the basis for negotiations with suppliers. The research approach included primary and secondary research coupled with qualitative and quantitative data collection methods.

During the course of this category management engagement, the client analyzed the full value-chain to understand the full breakdown of costs for a designated category and identified effective pricing strategies. The client also established an internal center of excellence with formal methodologies, tools, and training for knowledge transfer to the suppliers. For detailed insights on solution offered, request for more information.

Key Questions Answered in this Category Management Engagement

1The Results

The category management engagement helped the flexible packaging client identify significant savings potential—$10 million in the first three months because of full value chain analysis and $18 million recognized from improved category management. Additionally, on the supply chain side, savings ran between 2% – 11%, which helped the client switch to a pull inventory approach.

Recent Case Studies

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars