Driving Raw Material and Packaging Material Productivity Excellence

Table of Contents

STUDY OVERVIEW

• Study Objective
• Key Findings and Insights
• Benchmark Class Profile
  • Figure S.1-Benchmark Partner Companies

CURRENT PACKAGING PRODUCTIVITY BENCHMARKS

• Defining Productivity
  • Figure 1.1-Factors Included in Definition of Productivity
• Cost Metric: Material Costs
  • Figure 1.2-Raw Material and Packaging Costs as Percentage of Total Revenue
• Cost Metric: Average Savings
  • Figure 1.3-Average Percentage Annual Savings in COGS
• Distribution of Total Savings
  • Figure 1.4-Distribution of Total Savings in COGS
• Delivering Productivity Goals
  • Figure 1.5-Who has Responsibility for Delivering Productivity Goals
• Measuring Productivity
  • Figure 1.6-How Manufacturing Companies Measure Productivity
• Achieving Productivity Targets
  • Figure 1.7-Activities to Achieve Productivity Targets
• Research and Development Resource Deployment
  • Figure 1.8-How R&D Resources are deployed to Achieve Productivity Targets
• Research and Development Resource Allocation
  • Figure 1.9-How Manufacturing Companies Allocate R&D Resources

LEVERAGING SUPPLIER RELATIONSHIPS

• Introduction
• Preferred Supplier Collaboration
• Utilizing Suppliers' Insight
• Leveraging Supplier Competition

BALANCING SHORT-TERM AND LONG-TERM PRODUCTIVITY DEMANDS

• Hedging Against Cost Fluctuation
  • Figure 3.1-Methods to Hedge against the Fluctuation of Costs of Materials, Transportation and Other Input Factors that Impact Raw Material and Packaging
• Buyer vs. Supplier Hedging
  • Figure 3.2-Pros and Cons of Buyer and Supplier Hedging
• Short-Term Approaches
  • Figure 3.3-Proactive Approaches to Anticipate Price Fluctuations
  • Long-Term Approaches
• Figure 3.4-Approaches for High and Low Value Products

MAXIMIZING INTERNAL RELATIONSHIPS

• Driving Productivity
  • Figure 4.1-Responsibility for Driving Productivity
  • Figure 4.2-Primary Drivers of Raw Material and Packaging Productivity
• Driving Productivity Innovations
  • Figure 4.3-Productivity Innovation Web of Cooperation
• Centralized Reporting Lines
  • Figure 4.4-Centralized Packaging Organization Structure
• Key Internal Relationships
• Sharing Best Practices
  • Figure 4.5-Sharing and Replicating Best Practices

UTILIZING TECHNOLOGICAL INNOVATION

• Role of Technological Innovation
  • Figure 5.1-Importance of New Technology to Raw and Packaging Material Cost Reduction
• Sources for New Technology
• Transferable Technology
  • Figure 5.2-Application of Transferable Technology
• Key Industry Trend: Sustainability