6 Excuses for Not Having Supply Chain Solutions

Flexible retail packaging such as Mylar bags and custom stand up bags is usually the last thing companies think about when dealing with major retailers. Sure, it crosses their minds but certainly after they obsess about having ingredients and raw materials to make whatever they specialize in, whether it is a food product, a pet treat or non-food item. These companies will spend tons of time and money going to trade shows, passing out samples of their products, sending their sales people around the globe to close deals with retailers that can make or break their company and yet they’ll ignore supply chain solutions for their flexible packaging. Do you know the #1 reason companies fail with major retailers is they aren’t able to ship on time and often this is because they don’t have the stand up bags or Mylar bags packaging they need when they need it? Sure they’ll blame the retailer for last minute orders or unrealistic lead times but they knew this going into the retail arena in the first place, right? Why wouldn’t they even consider having a discussion about supply chain?

With over 30 years of experience dealing with companies selling food products, pet items, beef jerky, fruit juice, and even non-food items such as powder soap and grass seed, I’ve heard just about every excuse as to why companies don’t have a supply chain program in place for their flexible packaging. Here are the top 6 reasons we hear on a consistent basis.

6 Excuses Why We Don’t Have or Need a Supply Chain Solution for our Flexible Packaging

We have plenty of time between orders.

If you are dealing with major retailers, let’s be frank and honest with each other…you never have plenty of time between orders. Sure the buyer may think he or she does, and quite possibly on their desk and in their world they do, but if you are in the “trenches” trying to build the business with Target or Petco, etc, you know how these major retailers operate. They don’t have problems, you and your company do. Quite often, as mentioned earlier, buyers and operations people think because they have the raw materials to make their products they have what is needed to make their delivery dates, but rarely do they consider the Mylar pouch packaging and custom stand up bags that they’ll need to ship their products in.

Our Artwork Changes All The Time

We hear this excuse all the time and we know it does, however with the right flexible retail packaging supplier and with the right communication with the retailer this can easily be worked around. For example, in the 30 + years we’ve been selling flexible retail packaging solutions, once has there been a “mandatory” ingredient or change that needed to happen on a client’s packaging. This ingredient was found to make people sick and it needed to be taken off of their ingredients. Now, hardly is this a reason, once in 30 years to use this as an excuse. To be clear, I know artwork changes and ingredients change and “recommended serving sizes” need updated, but 99.9% of the time, the retailers will allow you to use up the packaging you have and make the change after your stock has been eliminated.

It Costs Too Much

This is such an excuse and a bad one at that. There are so many ways to implement a supply chain solution that costs very little if anything at all. Many clients want us to see their incoming orders so we can always have one (1) release of their particular packaging on hand 24-7. This costs them what…a few dollars for the Mylar bags packaging depending on their order and release quantity? And yet companies will use this as an excuse. Or, most companies know what quantity of stand up bags they need in case of an emergency…in case of an unexpected order or spike in sales or their inventory count was off where they thought they had stock of certain packaging but found out they were incorrect. Finally and often times, the best solution is just to have an agreement with your supplier of flexible retail packaging and custom stand up bags to have a roll or two of printed film on hand ready to be converted into pouches. This will save a least 2-3 weeks of production time. The point I’m trying to make and emphasize, all of these options cost very little (if at all)…in fact, rarely do we charge our clients for holding a small lot of emergency or safety stock or even printed raw material. We want to be the “hero” for our customers and the cost to us to have these pouches or film on hand is the “cost of doing business.”

We Don’t Need It

Sorry…you do. If you are dealing with major retailers you know how their problems, their mistakes are your problems. If they forget to place a large enough order of your product (even though you may have an agreed upon lead time) and there are “holes” on their store shelves, whose problem is it, theirs? Hardly, they’ll blame you. Or, if your company has the opportunity to “knock out” your main competitor by being “Johnny on the Spot” when they screw up their orders, is being able to deliver on a moment’s notice of value? You bet it is.

Our Orders Are Too Small

No they are not. Every company, regardless of the size, can afford to have a supply chain solution. Our smallest clients know that 1000 or 2000 pieces of custom stand up bags of a few different part numbers will allow them to react and fill orders faster without back-orders. This means they can complete their orders, get paid in full, and move on to new projects. Further, by being able to ship on time and complete, their order quantities and business with major retailers continues to grow exponentially.

We Always Have Plenty of Stock

No you don’t and you know it. I’m not advocating holding tons or hundreds of thousands of any flexible packaging, what I am saying is take a hard look at your business. How often are your numbers incorrect because a warehouse attendant transposed part numbers or listed the wrong one or you even forgot to place an order (you thought you did but you forgot). Our clients, large and small, have at minimum 3 of these “events” per year. Why accept this as “part of doing business” when you have a logical and inexpensive solution?

In closing, supply chain solutions can make or break your company’s retail success. The excuses we hear all the time of “why” clients don’t need it are nonsense. Why do you think UPS and FedEx are constantly pounding us with their commercials of Supply Chain Solutions or Logistics…and do you think they are going to be a low cost alternative versus having your flexible packaging supplier hold a nominal amount of custom stand up bags? The point here is have an open mind. Your flexible retail packaging provider wants to help, wants to be your partner and help your business get to the next level and supply chain is at the heart of their ability to assist your company. Consider listening to them. Remember, it’s your product, package it properly.