Discover your next big idea at PACK EXPO Las Vegas
Experience a breakthrough in packaging & processing and transform your business with solutions from 2,300 suppliers spanning all industries. Click to learn more.

What is this thing called Resource Distraction Value?

It’s the real-dollar value–sometimes as large as the direct costs themselves–that a company saves when leveraging a contract packager. The benefits, although seldom tracked, fall directly to the bottom line.

Pw 11750 Page 22 1

Imagine a resource, any resource. It could be money, water, time, or fuel. Time is recognized as the most valuable resource of all.

Regardless of what it happens to be, the resource has maximum and inherent value when engaged toward a primary purpose–let’s say its “core competency.” But when used for a non-core purpose, the resource loses its value and thereby significantly diminishes the return on investment (ROI) to its shareholders.

In today’s lean manufacturing environment, that distraction could make the difference between both market share gain or loss and a financial profit or loss.

At Wilpak, we have trademarked a phrase that describes this situation. We call it Resource Distraction Value™ (RDV), and it has powerful relevance for contract packagers. Let’s look at an example to demonstrate how and why.

Visualize a consumer product goods company that has built an efficient supply chain to include highly engineered plants and a distribution network that provides blinding speed to market.

We’ll call it Company A. This company’s resources have been aligned toward a common goal: to manufacture the highest-quality products, in an efficient and state-of-the-art environment, delivered to customers on time, with the lowest possible total delivered cost. When this occurs, Company A maximizes shareholder value and solidifies market share.

An inventory audit breaks down Company A this way:

• Duties. Managers and personnel are involved in production, engineering, material handling, planning, control, quality assurance, maintenance, purchasing, safety and training, transportation, human resources, information technology, accounting, security, sanitation, distribution, materials, and inventory.

• Facilities. These include the actual buildings, floor space, and the cost of transportation, handling, and storage of the product that is displaced from this valuable space.

Videos from Universal Labeling Systems, Inc.
Conveying Innovations Report
Editors report on distinguishing characteristics that define each new product and collected video demonstrating the equipment or materials as displayed at the show. This topical report, winnowed from nearly 300 PACK EXPO collective booth visits, represents a categorized, organized account of individual items that were selected based on whether they were deemed to be both new, and truly innovative, based on decades of combined editorial experience in experiencing and evaluating PACK EXPO products.
Take me there
Conveying Innovations Report
Annual Outlook Report: Automation & Robotics
What's in store for CPGs in 2025 and beyond? Packaging World editors explore the survey responses from 118 brand owners, CPG, and FMCG Packaging World readers for its new Annual Outlook Report.
Download
Annual Outlook Report: Automation & Robotics