You save a penny on the instruction sheet. You shave a nickel off the corrugate. You negotiate a dime off the lithographed unit carton…
And then you spend thousands of dollars trucking your components and product all around the country.
Why not procure your components and then package your product in the same geographical area to save on freight?
Metropolises such as Los Angeles, Chicago and Memphis have the infrastructure and industries to provide competitive pricing on most packaging components. Additionally, when combined, these cities are within a day’s drive of the majority of the population in America.
For example, you may have your headquarters in Florida but if your client’s distribution center is in the mid-west, it may make sense to package your product in Memphis or Chicago.
Or consider products you have manufactured overseas. Instead of receiving your product into a California port, transporting the product to your warehouse on the east coast for inspection, secondary packaging, and distribution, it may make sense to use a contract packager in Los Angeles.
Or perhaps you are planning a national roll-out. Instead of packaging and shipping your item from a single location, it may make sense to divide the project into two or three manageable pieces and have different geographic locations produce your items.
As gas and oil prices continue to increase, more and more smart businesses will look to outsource their requirements to areas close to their end users or main manufacturing plants.
Its like the old adage says, it’s all about “location, location, location.”