Discover your next big idea at PACK EXPO Las Vegas this September
Experience a breakthrough in packaging & processing and transform your business with solutions from 2,300 suppliers spanning all industries.
REGISTER NOW & SAVE

What is this thing called Resource Distraction Value? (sidebar)

Putting a value on the process

Pw 11751 Formulas

What is the actual value of using a contract packager? First, we need to total the dollar value of the resources that were distracted from Company A. These line items don’t always appear on a general ledger. It soon becomes obvious this number will vary wildly, depending on who does the calculations.

Regardless of the method used, the number will be huge. Do your own math based on your company’s experiences. Account the value of the involved resources discussed in Company A’s approach and calculate their worth based on a significant percentage of their worth being distracted and dedicated to a non-core event.

Next, we know there is a direct cost to both Company A and Company B. For Company A, the direct cost includes additional labor, materials, equipment, space, utilities, and overtime for core staff. For Company B, the cost is merely the charge for the contract packager. Our example assumes that both work-in-progress and component costs are the same for both companies.

Coding, Marking, and Labeling Innovations Report
Explore our editor-curated report featuring cutting-edge coding, labeling, and RFID innovations from PACK EXPO 2024. Discover high-speed digital printing, sustainable label materials, automated labeling systems, and advanced traceability solutions that are transforming packaging operations across industries.
Access Report
Coding, Marking, and Labeling Innovations Report
2024 PACK EXPO Innovations Reports
Exclusive access: Packaging World editor-curated reports revealing PACK EXPO's most groundbreaking technologies across food, healthcare, and machinery sectors. Each report features truly innovative solutions selected from hundreds of exhibitors by our expert team. Transform your operations with just one click.
Access Now
2024 PACK EXPO Innovations Reports