Is Switching Stretch Film Suppliers Really Saving You Money?
A lower price per pound doesn't always mean a lower cost.
Why?
When stretch film prices flucturate, it's natural for packaging buyers to look for opportunities to reduce costs. And when another supplier offers film for a few cents less per pound, switching can seem like an easy decision.
But is that lower price actually saving your operation money? The answer depends on more than the monetary expense of the film.
Stretch film is just one part of a larger packaging process. Its performance can affect material consumption, equipment efficiency, labor, and ultimately, how well your products are protected during transportation.
Before making a change, look at the total impact.
The Hidden Costs of Lower-Priced Film
Not all stretch film performs the same way, even when they have similar specifications.
Surprising?
A lower-priced film may work perfectly well for your application. But if its performance or quality is inconsistent, the slight savings quickly disappears - and its not always immediately obvious.
Before switching from a film currently working for your operation, consider a few potential consequesnces:
Increased film consumption. If the new film requires additional wraps to acheive adequate load containment, you may end up using more material per pallet, increasing costs.
More frequent film breaks. Film that doesn't perform consistely on your equipment can lead to interruptions, rewrapping, and wasted material.
Reduced operational efficiency. Additional adjustments, downtime, and operator intervention can affect productivity and output, ultimately increasing costs.
Inconsistent load containment. Film that doesn't adequately secure your products increases the risk of shifting loads and damaged goods during transit, again increasing overall costs that aren't immediately apparant at the wrapper.
Additional costs may not appear at the wrapper, or on your stretch film invoice, but they can have a real impact on your bottome line.
Price Per Pound vs. Cost Per Load
Let's say a new supplier offers stretch film at $0.05 less per pound.
Current Film | Lower-Priced Film | |
Price per pound | $1.50 | $1.45 |
Film used per pallet | 0.50 lb | 0.55 lb |
Material cost per pallet | $0.75 | $0.80 |
Cost per 10,000 pallets | $7,500 | $7,975 |
Despite the lower purchase price, the alternative film costs an additional $475 for every 10,000 pallets wrapped because more material is required. That's before accounting for potential downtime, increase in labor, or product damage.
These numbers are for example purposes, but the point is important. A lower material price doesn't guarantee a lower packaging cost.
What Should You Evaluate Before Switching?
Price matters. But its not the only important aspect. Performance and overall operating costs need consideration beyond 1 line item on an invoice.
Before changing stretch film suppliers, ask yourself:
How much film is being used per pallet?
Does the new film perform consistently on your equipment? Have film breaks increased? Is more operator intervention necessary?
Are you achieving optimal load containment? Is your load still making it to its final destination in like-new condition?
What kind of (if any) technical support does the supplier provide? Do they help optimize your application, troubleshoot problems, and identify opportunies to improve efficiency?
Testing film under actual operating conditions provides a much clearer picture of its value than comparing prices and specifications alone.
Don't Overlook the Value of Your Supplier
A stretch film supplier should offer more than a competitive price.
Consistent product quality, reliable availability, responsive service, and technical expertise can all contribute to a more efficient packaging operation.
An experienced supplier can help identify opportunities to reduce film consumption, improve containment, address recurring packaging challenges, and help navigate volatile market fluctuations. That support can create measurable value beyond the price of the product iteself.
Make the Decision Based on Performance, Not Just Price
Switching stretch film suppliers isn't necessarily a bad idea. It's possible a new supplier may offer a product that performs just as well - or better - at a lower cost.
The most important element is ensuring the savings are real.
At Sigma Stretch Film, we believe packaging decisions should be based on measurable results. Through our Rite-Gauging® process, we evaluate film selection, application settings, and load containment to help customers identify opportunities to improve performance and reduce their overall packaging costs.
Before switching suppliers to save a few cents per pound, make sure the switch won't be costing you more somewhere else.
Contact your Sigma Stretch Film Sales Professional to learn how a Rite-Gauging® assessment can help you evaluate your current operation and identify opportunities for improvement.
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