Total Cost of Production

Is a box really just a box? The answer of course, is no. When purchasing a box for your product there are many factors to consider. You need to look at The Total Cost of Production.

  1. Attaining the cartons
  2. Consuming the cartons
  3. Managing the cartons
  4. Possibility of modifying the cartons

Let’s look at each piece.

Attaining: Besides the carton price you should also consider the cost of delivery, processing the PO’s, invoices, and payment. Does the vendor include delivery in their price or is that additional? Does the vendor have a streamlined or automatic process for sending and verifying PO’s? What is their system for issuing invoices and receiving payments? Do they have an automated system? Can you pay through ACH or direct debit. these processes can safe you time and money on the backend.

Consuming: Consuming or using a carton can have several factors. Not only the price of the carton but how does the carton go through your facility? Does it jam-up your automatic equipment? Does it cause down time? How much time and at what cost?

Managing: How many cartons do you need to order? How long do you have to store them (inventory can drain cash)? Where do you store them? Do the cartons get damaged while waiting to be used? After a certain product is finished do you have extra cartons? Where do you dispose of them?

Modifying: Does the vendor have a design department? Are there additional costs for sampling of new cartons? If a current carton needs to be modified how is that done and who pays for it?

These are all factors you need to take into account when reviewing your packaging needs. Packaging Design can assist you in evaluating ALL these factors and ensure you get the right carton for your needs!