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Our procurement team has asked that we accelerate our supplier <mshighlightspan class="mshighlight" style="background-color: rgb(178, 214, 243);">assessments</mshighlightspan> and/or material qualifications for cost savings initiatives. I wanted to reach out to gather your feedback:

1. Are there any best practices, strategies, or approaches you've found effective in driving faster progress on cost savings initiatives?

2. Typically, how many line trials do you require before you consider a new material fully qualified?

Your input would be greatly appreciated as we look for ways to streamline our processes without compromising quality.

Hi,

General packaging development projects aspects

1. Establish a cross functional team within organisation - Define level of complexity of the initiative i.e requirements of operations existing equipment, retrofitting or new, innovation 
2. Trials depend on the level of change or update and complexity matrix. Changes in specifications etc. 

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[Eyman] [Mahgoub] [Eng.]
[MS Packaging Engineering]
[DAL Grouop]
[+249912106474]
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I would add, overall the ask seems simple but the risks are great if failure occurs. You can do some simulated testing at the supplier to establish a level of confidence needed to approve PRIOR to actual in plant testing. 

• you have to establish a baseline for the performance of the current package prior to any change, this must be data based
• determine if you have to test on all impacted production lines, normally recommended since production line all perform differently
• line trials can be conducted in a 3 step process - these are general guidelines and must be tailored to your particular situation.  
  • mini-line trial - normally a small amount of new packages to test as a failsafe test. Normally best to intermix in normal production inventory. Example - corrugated - run 20 current cases then 20 test cases. It is critical that you remove each case, inspect and record data. This step also would require either a simulated of actual ship test, can be a couple of pallets of test and control, ship out and return for inspection.
  • If #1 above shows no issues, then next step would be a larger line trial of 1 hour to 1 shift with random sample of control and test cases. Control cases should be pulled prior to initiating the test so you have a based line of line performance, then during testing the test samples need to be pulled at start of test, middle of test, end of test and followed by another control sample at end of test. This should be followed by a full truck ship test with half control and half test, alternated in the truck from left to right. 
  • 3 part is a monitored full production testing - pulling samples as retains and evaluated
• It should also be remembered that a packaging specifications a living document and designed to continually be updated with required changes. 
• additionally, you need to push back on procurement team and work with them on cost saving ideas being presented and force the supply based to work farther out. Plus develop a roadmap of saving opportunities that have been vetted by OPS, Purch, Pkg, Suppy Chain others as viable - get buying from all up front. Line trial and testing is not cheap/requires resources.

Hope it all works out for you and if you want to discuss more let me know.

Bob

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Robert Larkin CPP
Retired - Director Packaging and Graphics Development
BL.PKGL LLC
West Des Moines IA
(901) 201-1373
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Original Message:
Sent: 02-04-2025 04:23 AM
From: Eyman Elshaikh Mahgoub
Subject: New Best Practices for Accelerating Cost Savings Initiatives

Hi,

General packaging development projects aspects

1. Establish a cross functional team within organisation - Define level of complexity of the initiative i.e requirements of operations existing equipment, retrofitting or new, innovation 
2. Trials depend on the level of change or update and complexity matrix. Changes in specifications etc. 

------------------------------
[Eyman] [Mahgoub] [Eng.]
[MS Packaging Engineering]
[DAL Grouop]
[+249912106474]
------------------------------

Hello,

Because the request comes from Procurement, I would work closely with them.  Before accelerating any cost-saving initiative, make sure to understand Procurment's objective.  Typically, they have objectives in $/year.  As you get closer to year-end, finding big savings that will be completed on time is harder.  Make sure their objective is still achievable. A discussion with Procurement can be to agree on a tracker listing the initiatives and grading these initiatives in terms of effort (Low, Medium, High) and "$" impact (Low, Medium, High) - then align with Procurement on the priorities.  When the priority list is agreed upon, request support from Procurement to secure suppliers' resources for high-priority projects (for instance, accelerating time for receiving trial material).  It is important to explain your priorities to suppliers that have multiple projects with you (cost-saving initiatives and innovation projects - which one they should tackle first). Ask your supplier what it takes to accelerate some high-priority projects on their end. Keep in mind that some tests will take time (as Robert said before). For more complex projects, a Gantt chart will help you identify the critical path so that a discussion with Procurement and Suppliers can focus on these tasks.

I hope it helps.

JFG

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Jean-Francois Guillerez CPP, Fellow
Professor, Packaging
Conestoga College Institute of Technology and Advanced Learning
Cambridge ON
Canada
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For starters, having a good idea of the level of effort, complexity and timing associated with any change is beneficial. Coming up with a list of ideas and considerations can be simple, but understanding the work associated with change can help to streamline and prioritize your work.

It's also key to understand the timing to "realize" any savings. Even after all testing is completed it may take months to draw down material inventories, update systems, etc. to get changes fully implemented. 

Of course, the specifics of line trials, sample size, performance testing, distribution testing, etc will all vary depending on your specific product, the supply chain flow, and any customer requirements.

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Rob Kaszubowski CPP
Director, Packaging Optimization
NTT Data - Packaging Optimization (formerly Chainalytics)
Minneapolis MN
(763) 772-2455
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In 2023/24, we helped a Fortune 100 client save 10s of millions - going in, they had little appreciation for the value of data, being in a form that could be readily analyzed. That was step 1. Step 2 was based on the 80/20 rule and managing complexity by focusing first on the 80% of cost in the top 20 packaging items. The biggest impact resulted in our independent, cross-functional team of experienced experts conducting gumbo walks through manufacturing and distribution facilities. While the focus was on packaging material spend, some of the greatest savings was in transportation, once packaging and unit loads were reconfigured. 

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Brian Wagner
Cofounder and Principal
PTIS Global, llc
Petoskey MI
(269) 806-4566
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Hi,

There is some points that you can check in order to find possible savings, (of course, depend of your kind of packaging industry):

1. About packaging material: It is the right? The weight of the packaging is just that I need it?, and the same questions about the label. All the components in the packaging are required?
2. About the shape of the packaging: There is another shape that contributes to gain better logistical performance? Or maybe there is another configuration in the delivery package that help me to transport more units per truck? 
3. There is some element in the processing line the can help me to improve the cost of the packaging? For example, I can add N2 to lighten the packaging? 

Please always test it, like Robert Larking suggested, even if the cost saving proposal affects the consumer. Work hang by hand also with marketing team if it si necessary.

Angela Jimenez

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Angela Jimenez
R&D Sustainable Packaging Specialist
Oak Park IL
(954) 668-8798
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