Shop where they care for you
Consolidating supply chains are leading to worsening service for clients of all sizes. The dominance in the market of international goliaths should be a threat to mid-sized carton print packagers; the reality is quite the opposite.
By way of explanation as to what is happening we ask; what is happening to boost the fortunes of mid-sized carton packagers?
Is Bigger Better?
In the pharmaceutical packaging paper board sector, two huge companies dominate after a period of consolidation and restructure in recent years. Looking at the impact of consolidation on these two heavyweights the only clear conclusion is that they have entered a period of introspection, focused on internal changes. Clients of these businesses have not received their share of any synergies that have been realised and service levels have fallen.
SME Prices can be competitive
Big packaging businesses look for long runs and large clients, almost exclusively. Chopping and changing between carton sizes and having short run orders amongst the core packaging are an issue. Despite the equipment at their disposal the teams in big packaging companies tend to do one changeover a day and so are not drilled in such key tasks in the way that specialists are. Board prices may be 1-2% cheaper for the large players, but often they do not pass this on. As a result SMEs can match raw material costs, can run their lines with more precision leading to highly competitive prices; especially for shorter runs and complex work.
An SMEs service will endure
Every client to Medica Packaging is precious. The loss of any client at an SME will be felt more than the loss of a client to a larger company. Born of this reality, so the service at Medica is better. Calls are answered, client care is very high and issues are resolved quickly. Communications are clear and the decision maker is not a committee of corporate professional but often one person running the company; they can make changes quickly. The counter is the security of supply but at Medica, like others, they target 100% OTIF and achieve 98%.
“I’ve worked at a number of businesses and can understand why big businesses don’t give as much attention to clients. It doesn’t make sense for them to bother as much as we do. That’s why I chose to work at Medica where we are very competitive and take pride in every job,’’ Gerard Harford, MD, Medica Packaging.
If you would like to find out more about Medica Packaging’s approach and five day lead time please contact us at firstname.lastname@example.org