Eliminate Just-In-Case Risk with Just-In-Time Packaging Replenishment

Just-In-Time Replenishment

Supply chain disruption, labor shortages, extended lead times, and inflation are forcing companies to reassess the best way to manage packaging inventory levels.

The challenge is in finding the ideal balance between having enough of the right types of packaging available and tying up working capital in bloated packaging inventory.

For many companies the fear of not having what you need when you need it results in too much packaging sitting on shelves waiting to be used.

Just-in-time packaging replenishment gives you the best of both scenarios – the packaging that you need is ready for you exactly when you need it. Just-in-time packaging replenishment takes the stress out of managing inventory security and cash flow.

Unpacking Just-In-Case, Just-In-Time, and Just-In-Time Packaging Replenishment

Packaging inventory management is critical to your success.

  • Just-In-Case inventory management works by purchasing to min-max levels to maintain packaging inventory for anticipated future demand.

    There are four key challenges with the Just-in-Case approach:
    • Working capital is committed to packaging you might not need.
    • People are busy managing this packaging rather than working on higher value-add tasks.
    • Resource demands are intense from warehousing to the time and energy needed to manage this packaging.
    • You are committed to this packaging, making it difficult to pivot and be agile when new products are released, consumer demands change, labor shortages cause slow-downs, or in the event of a natural disaster or global pandemic.
  • Just-in-Time (JIT) inventory management matches your packaging inventory volumes to current demand and production schedules. With JIT, packaging is delivered when you need it, eliminating the need to warehouse inventory until it is required.

    The challenges of JIT were highlighted for many companies during the 2020 – 2022 global pandemic:
    • Supply chain breakdowns mean many companies are stranded waiting for packaging to arrive.
    • Long lead times make it impossible to accurately predict supply and demand.
    • Customer demand changes rapidly, leaving companies with the wrong packaging on shelves or with no packaging at all.
    • Escalating fuel prices and inflation mean everyone is thinking twice about how to spend.

      When JIT works – it works really well – but when it breaks down, everyone struggles. Your products are stuck, perishables such as food and pharmaceuticals are at risk of spoiling, and customers lose faith in your ability to deliver.
  • Just-in-Time Packaging Replenishment inventory management aims to optimize your inventory security and cash flow. JIT packaging replenishment means you get the right amount of inventory at the right time – based on your operational and financial needs.

    With just-in-time packaging replenishment, the challenges of JIT and Just-in-Case are opportunities for you to outperform your customers:
    • Be ready to respond quickly to changing customer demands and sudden labor shortages.
    • Agility is second nature – making it possible to quickly roll out new packaging or adjust to market fluctuations.
    • SupplyOne Packaging Specialists consistently monitor your inventory and align this with current and anticipated supply chain challenges, current events, and peak sales periods.
    • Free up working capital and resources, allowing you to grow your business.

      Just-in-Time packaging gives you flexibility and a truly customized inventory replenishment strategy – helping you to reduce total cost of ownership, storage costs, improve cash flow, and prevent packaging waste and stockouts.  

Finding the Ideal Inventory Management Balance

You need the assurances of a safety cushion with packaging supplies – especially with your custom packaging products and packaging for perishable products.

No business today can manage the risk and potential loss that comes with product waiting for packaging. This makes Just-in-Case inventory management a tempting proposition.

Often companies feel confident knowing they are ready and do not need to worry about lengthy lead times or price increases. However, the trickle-over impact of Just-in-Case is a drain on working capital, resources, warehouse space, and agility.

JIT packaging inventory management aims to reduce these hidden costs by eliminating excessive and potentially outdated packaging inventory, reducing the dollar costs of inventory management, protecting against inventory damage and waste, and freeing up labor and resources for high-value tasks.

However, there is always risk with JIT inventory. The what if scenarios loom large – global events, supply chain shutdown, labor shortages, inflation, recessions, and more make JIT a weak point in your business.

And this is why so many companies are transitioning to just-in-time packaging replenishment.

Making Just-In-Time Packaging Replenishment Work

Just-in-Time packaging replenishment gives companies the peace-of-mind, control, and confidence that their packaging inventory is responsive and balanced.

With JIT packaging replenishment you are in control. Manufacturers and companies determine their min-max inventory levels – across all products and product categories. 

JIT packaging replenishment is a customized, middle-of-the-road approach designed to optimize inventory security and cash flow – while ensuring agility in response to supply chain, labor, and global challenges.

As a large-scale packaging manufacturer and a broad-line distributor of custom and stock packaging products, SupplyOne is uniquely positioned to make JIT packaging replenishment work. We have a track record of optimizing customer packaging supply chains to save time, money, resources, and reduce total cost of ownership.

As a national company with a local presence, SupplyOne’s Packaging Specialists work with you to optimize your inventory and packaging processes. Our vast network of best-in-class suppliers and long history mean we have the people, processes, and resources to make JIT packaging replenishment your ideal fit.

Know that with SupplyOne’s proven just-in-time packaging replenishment expertise you get the packaging you need when you need it. Trust us to do the work while you remain in control.

With a range of complimentary programs and capabilities, including price protection, summary billing, and full-service packaging design and engineering, SupplyOne reduces your total cost of packaging ownership while delivering confidence in your packaging supply chain.

Contact us today to learn how SupplyOne can optimize your packaging inventory management process.