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As a service function, core to the brand position and value, Packaging sells the product, but within strictly managed production parameters.

This Unit addresses all the Commercial aspects of package procurement.

  • Buying & Selling Packaging
  • Cost structures, profiles & modelling
  • Cost control & reduction

An essential tool for both local Brand owners & packaging suppliers effective management of the packaging process

  • These  Modules are delivered at Foundation, Intermediate levels and provide  a solid foundation for newly hired staff and reinforcement for experienced management.



203.1: Packaging; Commercial Awareness
 Level: Foundation
 Duration: 1/2 day
Who Should Attend?
Technical and Sales staff of Packaging producers, Brand Owners and Buyers of Packaging users
An entry level course which explains the process of buying and selling packaging, and what influences the selling price.
Students will understand the commercial arrangements of packaging supply, and also the cost influences and some of the potential problems. Some alternative routes to existing packaging will be considered
Basics of Buying & Selling Packaging
  • Typical Orders / Contracts
  • Supplier Responsibilities
  • Customer responsibilities
Cost make up of Packaging items
  • Feedstock Materials
  • Feedstock Market Data and linkage
  • Added Value from suppliers
  • Run length / Order size effect
  • Cost modelling basics
  • Consequences of too low a price

Who pays for what?

  • Mould costs,
  • Trials, samples, proofs
  • Machinery investment
  • Rejects / consequential loss

Alternatives (the bigger picture)

  • Hole in the Wall
  • Change of technology
  • Different materials
  • Product replacement


203.2: Packaging - Commercial Awareness
Level: Intermediate Duration: 1 Day
Who Should Attend?
Technical and Sales staff of Packaging producers, Brand Owners and Buyers of Packaging users
A more detailed look at the Commercial influences on Packaging, with special references to controlling suppliers and controlling costs
Students will have a good understanding of commercial influences on the Packaging Supply Chain, the Costs of different pack types, and how they are controlled 
Buying Packaging - “Rules of the Game”
  • What are we buying?
  • Roles and responsibilities - Buyer and Supplier
  • Who pays for what (usually).
  • Cost / Service / Quality
  • Quality and Specification influence
  • Service
  • Price  v Cost
Cost Profile of Different Packaging Materials
  • Typical cost structures
  • Suppliers Costs
  • Feedstocks
  • Investment, ROI and  Profit

Major Cost influences  & Cost Modelling

  • Volumes / Run lengths
  • Tooling
  • Factory considerations
  • Cost models - risks and rewards
  • Plastic Components and Mould cost Control

Global / Regional / Local Suppliers

  • Benefits / Risks of each type
  • What makes a good supplier?
  • New product innovation - who gets it?
  • Supplier Capability

Cost Control / Cost reduction

  • How can we reduce cost year on year
  • Long term tactics for buyer and seller
  • Alternative materials / technologies




1 PBIA May2015 web


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