10 Ways Food Packaging Companies Are Killing Their Own Sales
January 2, 2017
What distinguishes a successful packaging company from one that struggles day in and day out to maintain profit margins and productivity quotas? What makes one shop able to produce great results while another company scrambles to stay afloat?
Here are ten ways that food packaging companies shoot themselves in the foot -- or, to look at it positively, ten opportunities to innovate for growth and expansion through better productivity.
1. Asset Investment Burdens – Upkeep for Old Machines
Too many companies keep sinking money into old pieces of machinery (read about the sunk cost fallacy if you're into the psychology behind this). They're using legacy equipment that needs a lot of maintenance on a monthly or annual basis. They keep shutting down lines to replace parts or fix machines when they should be producing. Meanwhile, that maintenance and repair money is taking a chunk out of their bottom line.
2. Lack of Productivity from New Technology
Packaging companies are also leaving money on the table when they don't take advantage of opportunities to upgrade to newer, faster and more sophisticated machines. New technology offers more productivity and better capacity. It offers more transparency and easier learning processes. So it's a no-brainer for boosting productivity and increasing profits.
3. No Attention to Workplace Ergonomics
Here's another pitfall that companies run into -- when they don't evaluate a workspace for ergonomics, they're not protecting their workers from injury. That leads to lower productivity and absenteeism in the long run.
4. Not Enough Branding Visibility
Packaging companies also hurt themselves when they don't invest in branding outreach. They may have new potential clients right in their own communities, but those people don't know that they exist. As a result, it's hard to grow and get contracts in order to expand the firm.
5. No Corporate Culture of Success
The best and smartest companies are building a reputation as firms that are employee-friendly -- they're giving an olive branch to working parents and working families, in order to benefit from loyalty and a positive image in the community.
Other companies are still behind the curve, relying on hierarchical processes that are outdated and, as a rule, not very worker-friendly. Building a successful corporate culture means valuing every person, empowering and engaging employees, and making the company a place that people really want to go to work at.
6. Poor Distribution Systems
Another key part of productivity is distribution. You've packaged all of those items -- and now you need them to go out to customers. Without good distribution, bottlenecks can sink an otherwise successful business model.
7. Not Investing in Crafting the Highest Quality Results
Companies also suffer when they turn out inferior products. Think about poorly constructed containers, packages that don't stand up to the test of time, or products that are extremely vulnerable to light and temperature, etc. This is another area where new machines come into play -- getting new technology helps to create better-finished results that will impress clients and customers.
8. Underinvestment in First Impressions
Besides all of the pleasant functionality of new packaging equipment, making these sorts of investments also offers packaging companies another plus -- it makes them look more successful and more capable. The same way you’d wear an Armani suit to a business meeting, you want to present potential clients with a clean, modern looking work environment with the best state-of-the-art machines and specially crafted business processes that will pay dividends for your company and theirs.
9. Labor Shortages
Some packaging companies also have a problem with labor. They keep frantically trying to fill gaps in the schedule, and keep shift rosters in good condition. The root causes of this come from some of the above problems -- they may not be paying enough or valuing employees enough. They may not be investing in enough manpower as a general rule. Whatever the cause, labor shortages can have a devastating effect on productivity.
10. Not Enough Innovation
In general, it falls to food packaging companies to innovate their business models or be left behind. Just like Blockbuster or any other legacy company that doesn't change its model or structure, many of today's firms are subject to liquidation at any given time.
Stop killing your sales with outdated or misguided processes and procedures! Contact Viking Masek to learn how food packaging automation can transform your operations.
