When it comes to managing packaging inventory, businesses should order the right amount of packaging to meet demand while keeping costs low. Ordering too much will have the business managing warehouse inventory while ordering too little can result in product restock delays. This makes the packaging replenishment cycle an important consideration in the supply chain.
In a complex marketplace, businesses may find it hard to establish a healthy packaging replenishment cycle. The truth is that a lot of factors are beyond the control of buyers and can impact their ability to procure packaging. Buyers may face packaging inventory-related issues such as varying supplier lead times, packaging stockouts, and overstock packaging.
Importance of a Shorter Replenishment Cycle
Having a shorter replenishment cycle helps businesses prevent packaging inventory-related issues from occurring. With a shorter replenishment cycle, buyers can order smaller volumes of packaging more constantly with the opportunity to adjust the quantity and frequency based on current sales data instead of long-term projections that may not be accurate.
Such an approach can minimize lead times, increase speed-to-market, and reduce warehousing costs. A shorter replenishment cycle lets companies use their resources to more effectively manage the procurement process, thus, further optimizing the supply chain.
Digital Print and Finishing
With digital print production, brands can shorten their packaging replenishment cycles and increase the efficiencies of the overall supply chain. It supports lower minimum order quantities and shorter lead times than litho lamination and flexo print. This leads brands to order smaller volumes more often. By employing this strategy, businesses don’t have to deal with too much packaging sitting in inventory storage as well as the cost and labor associated with inventory management. By closely tying order volumes with real-time sales data, companies will have more accuracy and less waste.
Moreover, having a shorter replenishment cycle supported by digital printing lets brands better connect with consumers. As brands don’t have to use print plates, they can regularly update their packaging with every reorder to incorporate more relevant on-pack messaging. As a result, brands can have the opportunity to align their packaging strategy with marketing promotions, seasonal campaigns, and changing consumer trends.
To establish and maintain a healthy packaging replenishment cycle, business owners must have extensive knowledge, industry training, and a reliable packaging partner. This makes it important to work with a supply partner for effective inventory management. With the right partner, businesses can also increase supply chain efficiencies and benefit from cost-savings.