15 March 2005
‘Just in time’ approach is critical for business success

Ever increasing levels of competition are forcing businesses to operate with streamlined processes, according to Chris Hutchens, founder and managing director of Gloucestershire-based Online Packaging.

A ‘just in time’ approach to stock management brings tangible and intangible savings. By streamlining the supply chain and reducing stock levels, manufacturers can operate more cost effectively to meet targets and manage cash flow.

“Today’s industry faces constant cost – down pressure, squeezing margins and forcing business to optimise their processes,” Chris explains. “This presents an ideal opportunity for packaging suppliers to provide valuable solutions for customers. By outsourcing the packaging supply management, businesses can reduce costs by holding the minimum materials at their premises, relying on suppliers to make frequent deliveries of goods, just in time for when they are needed.  At the same time, leaving this to packaging logistics experts frees the workforce to focus on other core functions within the business.

“Supplying packaging material to a customer carries a huge responsibility.  Everything delivered to or leaving a manufacturer requires transit packaging and if the materials are not in stock the impact on the business can be enormous.  Packaging may be an ‘invisible’ product, but shipping goods without it is impossible.

Obtaining real time information from customers, foreseeing market fluctuations or seasonal peaks which impact supply and demand, and planning ahead to overcome these obstacles is essential to efficient supply chain management.

Online Packaging is renowned for its customer focused approach:  Working as part of the supply team, understanding the products and end-users demands, being aware of production and delivery timetables and anticipating usage at any given time in the production cycle results in the elimination of materials shortages.