Packaging plays a key role in the success of a product, particularly in the Consumer Packaged Goods industry. It is one of the most important elements of the marketing mix, since it has the potential to affect the consumer’s purchasing decision at the point of sale. In spite of being a significant source of costs, most companies source packaging materials in a tactical manner – usually, upon the expiry of an existing contract, packaging suppliers are requested to respond to an RFP, to negotiate on pricing, and to enter into a contract. At times, trials are conducted on samples to ensure that materials conform to product design, branding and production parameters. However, this tactical approach to sourcing often results in an inefficient supplier base and bloated inventories leading to high costs in supply chain operations.

Contributors: Tata Consultancy Services
Categories: Whitepaper
SRC Type: Category Specific, Evaluation and Selection, Sourcing, Strategy