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Driving Raw Material and Packaging Material Productivity Excellence

Published by: Best Practices, LLC

Published: Jul. 1, 2006 - 37 Pages


Table of Contents


Current Packaging Productivity Benchmarks
Study Objectives

Key Findings and Insights

Benchmark Class Profile

Leveraging Supplier Relationships

Defining Productivity

Cost Metric: Material Costs

Cost Metric: Average Savings

Delivering Productivity Goals

Measuring Productivity

Achieving Productivity Targets

Research and Development Resource Deployment

Research and Development Resource Allocation

Introduction

Preferred Supplier Collaboration

Utilizing Suppliers’ Insight

Leveraging Supplier Competition

Hedging Against Cost Fluctuation

Buyer vs. Supplier Hedging

Short-Term Approaches

Long-Term Approaches

Maximizing Internal Relationships

Driving Productivity

Driving Productivity Innovations

Centralized Reporting Lines

Key Internal Relationships

Sharing Best Practices

Utilizing Technological Innovation

Role of Technological Innovation

Sources for New Technology

Transferable Technology

Key Industry Trend: Sustainability

Abstract

Driving Raw Material and Packaging Material Productivity Excellence provides extensive data and insight from 17 leading manufacturing companies.

These companies and thousands of others are being challenged daily to find more effective ways to produce low cost, high quality goods for consumers. As they look for ways to compete in a tightening marketplace, many companies still see operational processes as an area they must evaluate for more tangible returns. Through quantitative surveys and in-depth interviews with packaging and procurement leaders at top manufacturing companies, the Best Practices, LLC research team sought to identify the proven best practices and tactical innovations these companies are utilizing to reduce raw material and packaging material costs.

Best Practices LLC analysts identified several key elements that provide greater insight into developing high-performance in the areas of raw material and packaging material productivity. Some key findings include:
  • Leveraging supplier relationships emerged as one of the most important new ways to achieve productivity goals.
  • Best-in-class companies use two approaches depending on the situation: collaboration with preferred suppliers and competitive supplier selection.
  • Transferable technology innovations from other industries are the primary source of new technology to be leveraged for improving productivity.
  • Leading companies monitor packaging breakthroughs outside their own sector and evaluate them for transferability to their own environments and needs.


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