Custom Corrugated Containers versus Stock Shipping Boxes
Welcome to this series of posts comparing stock shipping boxes to custom corrugated containers. Most firms in manufacturing and distribution have the option of using either, and weighing the differences involves more than meets the eye. We hope these brief articles will help.
Cost Comparison, Stock Shipping Boxes versus Custom Corrugated Containers
Material Cost
Generally, the purchase price of either custom or stock corrugated boxes falls as the order quantity increases. The price differential is usually most pronounced on small orders. Many times, the price of a custom box will be prohibitive when purchased in lots of 50-500. Custom corrugated pricing is based in large part on linerboard footage, so the larger the custom box, the more price competitive smaller quantities will be versus a comparable stock size.
Purchased in large volume – full truckload shipments, for instance – the price gap narrows between stock and custom boxes, and the custom size can even be less expensive than the standard alternative.
Some corrugated manufacturers and distributors (such as our own firm) warehouse custom boxes for customers in order to increase the run size and thereby reduce the purchase price.
Storage Cost
Anyone who has purchased corrugated containers knows that they consume a great deal of floor space. One of the great advantages of standard size shipping boxes is that they can be delivered in small quantities with an extremely short lead time. As mentioned above, warehousing programs can be implemented for custom boxes, but due to logistical factors this option is not always economical. Even so, the purchasing staff should keep in mind that the price of a stock box includes a storage cost component, as stock boxes are being stored somewhere, usually in a distribution warehouse in large volume.
Procurement Cost
Stock boxes have a clear advantage in the ease and speed of ordering. Pricing, specifications, and delivery options are normally straightforward, whereas with custom corrugated containers, these factors can be very complex and subject to change. For custom material, the purchasing staff must maintain detailed specifications and review price and procurement options on a regular basis. Custom corrugated also carries a higher risk to the buyer, since there is a greater chance of a manufacturing error taking place.
Associated Costs
Utilizing a standard size box often means making a compromise on packaging efficiency. A good custom corrugated container design often reduces the size of the shipping box, while adding strength. This reduces the need for protective packaging, and may well improve packaging line productivity and reduce product damage.
Please contact us today if we can assist you in comparing stock versus custom corrugated in your operation.
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Packaging Materials, Packaging Equipment, Packaging Solutions
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