December 28, 2010 Leave a comment
Validating all product packaging material is a critical step to ensure our product launches occur on time and within budget. Imagine, successfully navigating a very long and rigorous new product launch process only to discover, the launch is delayed by several weeks simply because the packaging material, such as a master carton, was not validated.
Something as seemingly simple as the correct sized master carton can have a major impact on meeting launch dates and anticipated profit margins. For example, a carton purchased that is too small for the product leaves us with a few options.
- Find an online resource that specializes in, in stock, off the shelf cartons and purchase the closest match to the dimensions and weight restrictions of the product. If necessary buy a larger box than required and fill the void with packing paper, print and apply carton labels, getting the product to market a few days later than planned.
- Change the carton drawing with the corrugate supplier, augment the printing and cutting die, and wait another 2 weeks to receive cartons, launching the product at least 2 weeks later than planned.
The first option gets the product to market sooner, but has several extra costs involved, affecting targeted profit margins. The second option can delay the launch by 2 to 4 weeks, depending on supplier lead times and our own product processing times and manufacturing schedules.
With both options, there are extra costs involved, including:
- the extra cost per carton
- the cost to return, destroy or inventory the wrong sized carton
- the cost to augment or produce a new cutting and printing die
- the cost to order the correct carton
- the cost to print and apply a carton label
- the cost to purchase and insert packing paper
To avoid these and other more, intangible costs validate all product packaging material before purchasing and launching new products.