Unboxing The Benefits of Working with a Packaging Distributor

The box your product arrives in might seem like an afterthought, but in the grand scheme of your business, it's a silent brand ambassador, a protector, and even a marketing tool.

For many businesses, navigating the world of packaging options can be overwhelming, and that is where packaging distributors come in, acting as a one-stop shop for business box-related needs.

It’s important for businesses, according to a recent article in Supply Chain Management Journal, to take into account all aspects of packaging, including:

• Product protection and safety: Packages must protect and safeguard the product, withstanding shocks, vibrations, and possible mishaps along the supply chain.
  
  
• Logistics: Primary, secondary, and tertiary packaging should be easy to transport, minimize logistics costs, and improve the efficiency of the business.
  
  
• Marketing: Packaging is a “silent salesman”, the first thing that consumers or end-users see when buying a product.
  
  
• Environment: Sustainability is gaining importance so businesses must choose packaging that minimizes materials and waste and is reusable or recyclable.
  
  

“Packaging is evolving in many ways: what it’s made of, what it’s shaped like, and what words or images are on it. Two of the biggest factors driving those changes are the rise in e-commerce – products now need to be easy to ship, not just easy to stock on a store shelf – and sustainability,” explained Monica Toriello on the McKinsey on Consumer and Retail podcast.

Partnering with a reliable packaging distributor can help businesses unlock opportunities for efficiency, innovation, operational excellence, and competitive advantage.

What is a Packaging Distributor?

A packaging distributor is a specialized entity that acts as an intermediary between manufacturers and businesses in need of packaging solutions.

These distributors procure packaging materials from various sources, including manufacturers and wholesalers, and supply them to businesses across industries.

Packaging distributors utilized their vast network of packaging manufacturers to curate a diverse selection of boxes, tapes, labels, and other packaging supplies, ensuring businesses of any size can find the perfect fit for their product and budget.

Where You Purchase Your Packaging Matters

The decision of where to purchase packaging materials can significantly impact a business's bottom line and operational efficiency.

While some companies opt to purchase packaging materials directly from manufacturers, others prefer the convenience and benefits offered by packaging distributors.

The fact is that while buying directly from manufacturers might seem cheaper, it often comes with limitations.

Let’s look at some pros and cons of direct purchase of packaging vs. working with a packaging distributor:

Direct Purchase:

• Pros:
  • Direct communication with manufacturers may lead to more customized solutions.
    
    
  • Companies have more control over the production process and quality assurance.

• Cons:
  • Limited access to diverse packaging options.
    
    
  • Higher administrative burden and logistical challenges associated with managing multiple suppliers.
    
    
  • Manufacturers often require larger orders, which can strain your storage space and cash flow.

Packaging Distributor

• Pros:
  • Access to a wide range of packaging materials and customization options.
    
    
  • Simplified procurement process and centralized account management.
    
    
  • Expert guidance and support throughout the packaging procurement journey. They understand your needs and recommend the best solution, saving you time and money.

• Cons:
  • Potential markup on prices compared to direct purchasing.
    
    
  • Dependency on the distributor's inventory and supply chain efficiency.

12 Benefits of Working with a Packaging Distributor

As pointed out above, while direct sourcing from manufacturers offers certain advantages, partnering with a packaging distributor presents a range of benefits that can streamline processes and drive business growth.

Let's explore 12 benefits of working with a packaging distributor:

• Streamlined Supply Chain: Packaging distributors simplify the procurement process by serving as a single point of contact for businesses' packaging needs. This centralized approach enhances efficiency, reduces administrative burden, and streamlines communication throughout the supply chain.
• Access to Diverse Options: Packaging distributors offer a wide range of packaging materials, from corrugated boxes to specialized labels and shrink wraps. This variety allows businesses to find packaging solutions that align with their unique requirements and budget constraints.
• Expertise and Guidance: With specialized knowledge and industry experience, packaging distributors provide valuable guidance on selecting the right materials, designs, and printing techniques. This expertise helps businesses enhance brand visibility, optimize packaging performance, and meet regulatory requirements.
• Cost Efficiency: Packaging distributors leverage bulk purchasing power and negotiate competitive prices with suppliers, resulting in cost savings for businesses. By offering cost-effective solutions and transparent pricing structures, distributors help businesses maximize their return on investment in packaging.
• Efficiency in Ordering and Inventory Management: Packaging distributors offer flexible ordering options, just-in-time ordering capabilities, and advanced inventory management systems. These features enable businesses to optimize inventory levels, minimize storage costs, and respond promptly to changing market demands.
• Local Contacts: Packaging distributors have established relationships with local suppliers and manufacturers, facilitating smoother transactions and expediting deliveries. These local contacts enhance supply chain resilience and foster community engagement.
• Better Inventory Management: Packaging distributors help businesses optimize inventory levels, reduce stockouts, and improve cash flow through efficient inventory management practices and robust supply chain solutions.
• Shorter Lead Time for Orders: Packaging distributors maintain efficient logistics networks and supply chains, resulting in shorter lead times for order fulfillment. This agility enables businesses to meet customer expectations and capitalize on market opportunities.
• Fewer Dollars Tied Up in Inventory: By minimizing excess inventory and adopting lean inventory practices, businesses can free up financial resources for investment in core activities and strategic initiatives. Packaging distributors play a crucial role in optimizing inventory management and maximizing capital efficiency.
• Product Neutrality and Availability: Packaging distributors maintain product neutrality and ensure consistent availability of materials, minimizing supply chain disruptions and ensuring continuity of operations. This reliability fosters trust and long-term partnerships between businesses and distributors.
• Access to a Variety of Packaging Materials and Equipment: From packaging materials to machinery and equipment, packaging distributors provide access to a comprehensive range of resources necessary for efficient packaging operations. This integrated approach simplifies procurement and enhances operational convenience.
• High Level of Customer Service and Support: Packaging distributors prioritize customer satisfaction and offer personalized support throughout the packaging procurement process. From initial consultation to post-sale assistance, distributors provide responsive, reliable service to address businesses' needs and concerns.

Partnering with a packaging distributor emerges as a strategic imperative for businesses so they can incorporate these benefits.

Contact Performance Packaging today for help with packaging and shipping supplies, facility and warehouse supplies, and packaging equipment that can help your business save time, money, and resources.