The conversations we’ve been having with these folks remind us just how critical it is to have a strategy that efficiently and effectively leverages as many internal and external packaging resources as possible. So here are some of the trends we’re seeing that you can consider when developing your organizational strategies.
In-Sourcing: Approximately 15 years ago, in-sourcing started to become popular. Many large companies realized that some functions such as engineering were not considered core competencies and that they could “out-source” the work on a project-by-project basis to firms who specialized in these areas, eliminating associated overhead. However, the model didn’t fit so well for packaging because of the broad expertise and experience required to manage packaging design, innovation, support to marketing, support to sales, support to manufacturing, procurement activity, etc. The alternative was to figure out who in the value chain was already doing this kind of work and then bring them on-site (i.e. in-sourcing) to augment the internal packaging staff. Companies allocated space to packaging suppliers, for instance, to have their employees participating in projects and programs, managing the packaging components. In many cases, corrugated prepress experts sit on-site as resources for all corrugated artwork. In addition, CPG companies are leveraging “contract” packaging resources to manage some of their tactical work.
Out-Sourcing: Use of consultants, suppliers, universities, and independent research institutes is probably the most common form of leveraging external resources. But it’s seldom part of a well developed strategy. Top PTIS clients use us as their one-stop point of contact for all of their packaging questions and needs. Thanks to our extensive network of resources, and the communications capabilities we now enjoy in our browser-based world, PTIS is managing some or all of the functions that large packaging organizations might ordinarily try to manage internally. We and other consultants manage programs, projects, and even specifications for companies remotely. With experienced packaging leaders in place, functional packaging excellence can be attained. In some cases, entire packaging functions can be out-sourced and contracted on a project-specific basis to a business unit or across businesses.
