When thinking about buying packaging machinery and materials, especially large purchases, it’s all too easy to focus solely on price. Purchasing professionals are tasked with obtaining the lowest possible price on the consumables and equipment your business needs to run your packaging line.
While it can be tempting to focus on price alone, there are several reasons why it’s not just a bad idea, but a mindset that can actually cost you more in the long run.
Apart from the price, there are 3 very important factors to consider when making a purchase: delivery, quality and service. All of these factors should be considered when making a packaging purchase for the company you work for.
As a buyer, you are probably asked to spend as little as possible on the products you purchase for your business. Focusing on price when buying for your business is a good practice, but focusing solely on price can end up costing you money in the long run.
In this article, we’ll discuss four elements that are actually more important areas of focus than price when it comes to saving your company money during the buying process.
These days, everyone has access to the Internet and most of us do research on the products and services we want to buy. We have an idea of what we are getting for the price listed on the website.
Before you make your next purchase, you’ll want to take the time to consider 4 key things. Industrial packaging has been in this industry for a long time and we know the ins and outs of purchasing wholesale packaging materials and machinery.
Through this article, you will gain a better understanding of the important considerations that must be taken into account in every packaging material and machinery purchasing decision.
The 4 most important things to consider when buying packaging machinery and materials
When thinking about buying packaging machinery and materials, especially large purchases, it’s all too easy to focus solely on price. As a purchasing professional, you are likely tasked with obtaining the lowest possible price on the consumables and equipment your business needs to run your packaging line.
If you really want to make an informed and quality decision about the purchase of packaging materials and machinery, you will need to consider several factors.
When working with the delivery element, you’ll want to ask yourself a few questions about your current provider and consider making changes depending on the answers to those questions.
Does the company you are buying from use reliable carriers? But why?
Do you offer express or overnight shipping if you need it? This is an important thing to consider and you should choose a provider that offers these services.
Quality of customer service
We all assume that we will get what we expected when we made the purchase. But when that doesn’t happen, is customer service up to the task to help you handle unwanted issues?
There are a few questions to consider when judging the quality of customer service from your chosen providers. Poor customer service can end up costing you time and money. Some of the questions you will want to ask include:
Does the order conform to the specifications of the order you requested? If not, what actions will the selected vendor implement to correct the situation?
Does the provider provide accurate and timely billing? But why? Inaccurate paper records and billing time constraints can create significant and costly headaches.
Do your packages always arrive on time? If you place your order and it does not arrive on time, you may be forced to turn off your equipment. Your customer will end up upset because they will miss the expected delivery date you gave them for their purchase.
Are your orders properly and securely packaged from shipping? An example of this would be rolls of shrink film or stretch film. Some rolls are so heavy that they need to be tied and packed in a certain way to prevent injuries and bumps during transportation.
Taking the time to ask the important questions about your chosen vendors’ ability to meet and exceed expectations around these items is a good practice to implement. Take note of their answers and make sure you turn them into actions that result in the purchase of the right materials and machinery, regardless of price.
Service is an extremely important consideration when purchasing packaging materials and machinery. Bad service can lead to long periods of unexpected downtime and huge financial losses. When it comes to service, you will want to ask yourself the following questions.
Is the supplier communicating to you in a timely manner? If no, then you will need to ask them to improve, or you should consider moving to a new vendor.
Do they respond to your problems & emergencies? A fast response to issues like these means a lower cost. Does your current vendor provide a fast and quality response to these issues?
Will the salesman pay attention to your account? If your sales rep is not consistently helping to improve every aspect of your account, you will want to consider finding one who will.
How long does it take to receive a request for a quote? As you know, time is money. Your sales rep should be able to procure a price for your requested order ASAP. That being said, it should be noted that for very large orders, this may take some time.
Be sure to consider the skills and professionalism of the support people you are dealing with. We look for companies that have expertise in the product or service we’re interested in.
We look for companies that match OUR brand promise of: making it easy to do business with, highly responsive and no surprises. When you are looking to purchase packaging materials and machinery, it would be well advised that you choose a vendor who embodies these ideals
Yes, price is a factor but not the only factor as I’ve explained above. When dealing with price, you should ask yourself:
Is the supplier’s price competitive? Be sure they are reasonably priced and in line with other vendors you have researched.
Does the supplier offer you favorable payment terms? Standard terms are net 30 but why not ask for something better? It doesn’t hurt to ask.
Are they committed to cost reduction? Ask your vendor if they can come down on price if you order a larger quantity or if there are any special rebates or incentives currently available. They should be looking for ways to save you money. An example would be down gauging your shrink wrap to get a better yield from your film.
Does the supplier make you aware of cost increases or decreases in plenty of time so you can make your customers aware of the change? No one likes to be surprised when doing business with someone. We make sure to keep OUR customers informed of any changes that affect them.
A bad purchase or sub-par supplier could end up costing you more than you ever expected. If your order doesn’t deliver on time or your supplier messes up on the specifications of your request, it could cost you the ultimate price, your customer.
Are you willing to pay that price? Do your research, ask for customer references, look at online ratings. These activities can help you understand your supplier better. Know who you’re buying from.