Cost Reductions - The Pressure Sensitive Way
November 2005
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With energy costs soaring, CPCs may be looking for additional ways to attract consumers' diminished spending power.
AS IF BUSINESS wasn't tough enough already, the drastic rise in oil prices over the last several months will test the fabric of people and companies throughout every stage of the supply chain. The pain will be felt everywhere, starting at the end of the supply chain—the consumer—who supports the flow of money throughout the long, complicated supply-chain trail.
The typical consumer is going to have noticeably less hard cash left in his or her pocket after putting gas in the car and staying warm this winter. This will translate to less available money for discretionary items, and the companies that make these types of products will be doing whatever they need to do to move their products off the store shelves.
There will obviously be some rough roads ahead for the foreseeable future, but events such as these also present opportunities up and down the supply chain. In many cases, companies will be looking to industry suppliers for new ways to reduce costs or for ways to entice consumers to purchase their products and boost sluggish sales.
Pressure-sensitive (p-s) substrates are a mainstay in the labeling industry. Although competitive labeling methods such as shrink sleeves and in-mold labeling are biting at its heels, p-s labeling maintains a significant share of the market and has long been instrumental in both cost savings initiatives and in helping consumer products companies (CPCs) move product off the shelf.
Today's environment is not new territory for p-s material suppliers and they are well prepared to work with their customers in cost savings initiatives and other programs to help CPCs sell product.
General cost savings
Shawn Easter, marketing manager for Acucote, knows that material suppliers and label printers alike have long been evaluating and re-evaluating their costs and manufacturing processes to be as effective as possible, without compromising the quality of the finished product. However, he notes, recent economic challenges will again push all areas of the supply chain to seek new ways of conserving capital.
"Raw material costs are the highest percentage of expense that both label stock suppliers and converters must face when manufacturing finished goods," says Easter. "Their volatility in the marketplace causes ramifications through each link in the supply chain as prices continue to increase."
Although he knows that most manufacturing operations are lean and continually monitored for problems and opportunities, he notes the importance of staying abreast of materials options. "Frequently re-evaluating materials to make certain that the best solution is being provided to end-users is critical."
AS IF BUSINESS wasn't tough enough already, the drastic rise in oil prices over the last several months will test the fabric of people and companies throughout every stage of the supply chain. The pain will be felt everywhere, starting at the end of the supply chain—the consumer—who supports the flow of money throughout the long, complicated supply-chain trail.
The typical consumer is going to have noticeably less hard cash left in his or her pocket after putting gas in the car and staying warm this winter. This will translate to less available money for discretionary items, and the companies that make these types of products will be doing whatever they need to do to move their products off the store shelves.
There will obviously be some rough roads ahead for the foreseeable future, but events such as these also present opportunities up and down the supply chain. In many cases, companies will be looking to industry suppliers for new ways to reduce costs or for ways to entice consumers to purchase their products and boost sluggish sales.
Pressure-sensitive (p-s) substrates are a mainstay in the labeling industry. Although competitive labeling methods such as shrink sleeves and in-mold labeling are biting at its heels, p-s labeling maintains a significant share of the market and has long been instrumental in both cost savings initiatives and in helping consumer products companies (CPCs) move product off the shelf.
Today's environment is not new territory for p-s material suppliers and they are well prepared to work with their customers in cost savings initiatives and other programs to help CPCs sell product.
General cost savings
Shawn Easter, marketing manager for Acucote, knows that material suppliers and label printers alike have long been evaluating and re-evaluating their costs and manufacturing processes to be as effective as possible, without compromising the quality of the finished product. However, he notes, recent economic challenges will again push all areas of the supply chain to seek new ways of conserving capital.
"Raw material costs are the highest percentage of expense that both label stock suppliers and converters must face when manufacturing finished goods," says Easter. "Their volatility in the marketplace causes ramifications through each link in the supply chain as prices continue to increase."
Although he knows that most manufacturing operations are lean and continually monitored for problems and opportunities, he notes the importance of staying abreast of materials options. "Frequently re-evaluating materials to make certain that the best solution is being provided to end-users is critical."
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