Global Packaging Sourcing
Home »
Find the Right Packaging Source Based on More Than Price
Empire EMCO helps manufacturers identify domestic and global rigid packaging sources based on manufacturing capability, quality, cost, tooling, lead time, logistics and supply requirements.
What Is Global Packaging Sourcing?
Global packaging sourcing is the process of identifying and evaluating packaging manufacturers in multiple countries or regions based on manufacturing capability, quality, tooling, cost, lead time, logistics and supply requirements. Rather than choosing a supplier based on unit price alone, manufacturers should compare the complete requirements and total landed cost of the packaging program.
The Best Packaging Supplier Is Not Always the Closest or the Cheapest
Packaging sourcing decisions affect much more than component price. Therefore, manufacturers should evaluate the complete packaging program before selecting a source.
Look Beyond Unit Price
A low quoted price may be offset by freight, duties, tooling, inventory, warehousing or minimum order requirements. As a result, total landed cost provides a more useful comparison.
Match the Manufacturing Capability
A nearby supplier may offer shorter lead times. However, that supplier still needs the correct manufacturing process, material, tooling, quality systems and capacity.
Consider Long-Term Supply
In addition to today's requirements, consider future growth, new SKUs, technical changes and supply continuity when evaluating packaging suppliers.
What Should Manufacturers Evaluate When Sourcing Packaging?
The right packaging source depends on much more than location. Instead, evaluate the factors that affect performance, economics and long-term supply.
Manufacturing Capability
Determine whether the supplier can produce the required bottle, jar, closure, material, decoration, geometry, tolerance and volume.
Quality Requirements
Evaluate quality systems, consistency, dimensional control, specifications, testing and manufacturing repeatability.
Tooling & Mold Capability
Review stock tooling, custom mold requirements, family mold opportunities, tooling ownership and development cost.
Unit & Landed Cost
Compare component price with freight, duties, tooling, minimum quantities, warehousing, inventory and other delivered costs.
Lead Time
Evaluate manufacturing lead time, transit time, order cycles and scheduling. In addition, consider the resulting inventory requirements.
Logistics
Consider freight mode, distance, port access, packaging density, pallet configuration, warehousing and final delivery.
Minimum Order Quantities
Determine whether order quantities align with production demand, storage capacity, cash flow and inventory objectives.
Supply Continuity
Evaluate risks created by supplier concentration, geographic dependence, long lead times or limited alternative sources.
Long-Term Fit
Finally, consider whether the supplier can support future growth, new SKUs, custom development and ongoing production needs.
Where Should Your Packaging Be Manufactured?
There is no single sourcing model that is right for every packaging program. Some applications benefit from domestic production, while others may justify global manufacturing.
Domestic Packaging Sourcing
Domestic sourcing may provide shorter transit times, lower inventory requirements and faster response when qualified manufacturing capabilities are available.
- Shorter transit times
- Potentially lower inventory requirements
- Faster communication and response
- Simplified domestic logistics
- Potentially faster speed to market
Global Packaging Sourcing
Global sourcing may provide access to specialized manufacturing, competitive tooling, high-volume production or capabilities that are not readily available domestically.
- Specialized manufacturing capabilities
- Competitive tooling opportunities
- High-volume manufacturing
- Access to additional materials and processes
- Additional supplier options
When Should You Review Your Packaging Sourcing Strategy?
A sourcing review may be useful when costs increase, supplier performance changes, lead times become unpredictable or new capabilities are needed.
Our Supplier Cannot Make What We Need
Identify manufacturers with the required process, material, tooling, geometry, capacity and technical capability.
Our Packaging Costs Have Increased
Compare alternate domestic and global suppliers using total landed cost rather than unit price alone.
Our Lead Times Are Too Long
Evaluate alternate production locations, suppliers, inventory programs, logistics models and manufacturing capacity.
We Rely Too Heavily on One Manufacturer
Develop secondary, alternate or dual-source options that can reduce dependence on a single supplier.
We Need New Tooling or a Custom Package
Compare tooling costs, mold options, stock platforms, engineering capability and manufacturing locations.
Our Supplier Quality Is Inconsistent
Review alternate sources with stronger process control, quality systems, specifications and manufacturing repeatability.
How Does Empire EMCO Approach Global Packaging Sourcing?
We start with the packaging and manufacturing requirements. Then, we evaluate potential sources based on capability, quality, economics, logistics and supply risk.
Define Packaging Requirements
Establish component, material, performance, volume, quality, tooling and commercial requirements.
Identify Manufacturing Options
Evaluate domestic and global sources with the appropriate manufacturing capabilities.
Compare Cost & Capability
Compare economics together with tooling, lead time, capacity and technical fit.
Evaluate Quality & Risk
Review quality requirements, consistency, logistics and potential supply-chain risks.
Validate the Solution
Confirm samples, specifications, performance and other requirements before moving forward.
Manage Ongoing Supply
Support the program through sourcing, inventory, logistics and ongoing supplier coordination.
Different Packaging Programs May Require Different Sourcing Models
The right strategy may involve domestic manufacturing, global sourcing or a combination of both.
Domestic Packaging Sourcing
Domestic sourcing may provide shorter transit times, lower inventory requirements, easier communication and faster response when qualified capabilities are available.
Global Packaging Sourcing
Global sourcing may provide specialized manufacturing, competitive tooling, high-volume production or capabilities not readily available domestically.
Domestic + Global Supply Strategy
In some cases, combining global economics with domestic or alternate-source flexibility can improve continuity and reduce supply-chain dependence.
Why Should Global Packaging Sourcing Be Evaluated on Total Landed Cost?
A lower overseas unit price does not automatically mean a lower total packaging cost. Instead, manufacturers should evaluate all of the costs required to get the packaging into production.
For example, freight, duties, lead time, minimum order quantities and inventory carrying costs can significantly change the economics of a sourcing decision. Therefore, these factors should be considered together rather than comparing component quotes alone.
How Should a New Packaging Supplier Be Qualified?
Finding a manufacturer is only part of the sourcing process. The supplier must also be capable of producing the required packaging consistently and to the required specifications.
This is especially important when moving an existing package to another source. Apparently similar bottles, jars or closures can perform differently when dimensions, resin, tooling or process conditions change.
As a result, supplier qualification should evaluate both manufacturing capability and the performance of the actual package.
Can Global Sourcing Reduce Packaging Supply Chain Risk?
Yes. Sourcing is not only about finding a lower-cost supplier. It can also help reduce dependence on a single manufacturer, region, production process or long lead-time supply chain.
Alternate Suppliers
Develop qualified alternatives before a current packaging source becomes unavailable.
Dual Sourcing
Use more than one qualified source where volumes, tooling, economics and package specifications support the strategy.
Regional Diversification
Reduce dependence on a single geographic region by balancing domestic and international manufacturing capabilities.
Frequently Asked Questions About Global Packaging Sourcing
Quick answers to common questions manufacturers ask when evaluating domestic and international packaging sources.
What is global packaging sourcing?
Global packaging sourcing is the process of identifying and evaluating packaging manufacturers in multiple countries or regions based on manufacturing capability, quality, tooling, cost, lead time, logistics and supply requirements.
Is overseas packaging always less expensive?
No. Overseas manufacturing may provide a lower unit price in some situations. However, freight, duties, lead time, inventory, warehousing, minimum order quantities, tooling and supply risk should also be included when evaluating total landed cost.
When does global sourcing make sense for rigid packaging?
Global sourcing may make sense when specialized manufacturing, competitive tooling, large production volumes, unique materials, custom capabilities or favorable cost structures are not readily available from domestic sources.
Should manufacturers use domestic or global packaging suppliers?
The best choice depends on package complexity, volume, quality requirements, lead time, tooling, total landed cost, logistics, inventory requirements and supply risk. In some cases, using both domestic and global sources may provide the best balance.
Can Empire EMCO help identify alternate packaging suppliers?
Yes. Empire EMCO can help manufacturers evaluate alternate domestic and global rigid packaging sources based on capability, quality, cost, tooling, lead time, logistics and program requirements.
Can global sourcing help reduce packaging supply chain risk?
Yes. In some cases, adding qualified suppliers in different regions can reduce dependence on one manufacturer or geographic area and improve packaging supply continuity.
Need Another Source for Your Rigid Packaging?
Tell us what you are sourcing. Empire EMCO can help evaluate domestic and global manufacturing options based on packaging requirements, capability, quality, cost, tooling, lead time, logistics and supply risk.