INDUSTRIESCASE STUDIES
Manufacturing & Industrials
Packaging procurement influences far more than material costs—it affects inventory efficiency, logistics performance, and environmental impact across the supply chain.
Seeking to simplify a fragmented corrugated packaging portfolio, a manufacturing company partnered with Cognitud to redesign its sourcing strategy around cost efficiency, specification standardization, and sustainability.
Procurement was spread across regional suppliers using inconsistent pricing structures and more than 340 box specifications, many of which served similar applications. Variations in board grade, dimensions, and strength made standardization difficult, while decentralized purchasing practices increased inventory levels and limited visibility into true procurement costs. The category also lacked structured cost benchmarking and sustainability initiatives. Virgin fibre was used across all packaging applications, pricing remained disconnected from underlying kraft paper market movements, and opportunities to simplify designs, reduce material consumption, and lower Scope 3 emissions had not been systematically explored.
Procurement was spread across regional suppliers using inconsistent pricing structures and more than 340 box specifications, many of which served similar applications. Variations in board grade, dimensions, and strength made standardization difficult, while decentralized purchasing practices increased inventory levels and limited visibility into true procurement costs. The category also lacked structured cost benchmarking and sustainability initiatives. Virgin fibre was used across all packaging applications, pricing remained disconnected from underlying kraft paper market movements, and opportunities to simplify designs, reduce material consumption, and lower Scope 3 emissions had not been systematically explored.
Historical spend, supplier performance, and packaging specifications were analyzed across manufacturing locations to identify duplicate SKUs, specification overlaps, and sourcing opportunities. Should-cost models linked to kraft paper indices established a transparent commercial baseline, supporting competitive sourcing across pre-qualified suppliers and the consolidation of the supplier base into a smaller group of strategic partners. Delivered-at-Plant commercial structures, dual sourcing, vendor-managed inventory, and index-linked pricing mechanisms further strengthened supply continuity and commercial governance. The programme also incorporated packaging value engineering to improve both operational and environmental performance. Standardized box designs reduced specification complexity, while engineering assessments optimized GSM requirements without affecting packaging integrity. Recycled corrugated board was introduced for suitable applications, returnable packaging solutions were deployed for selected B2B movements, and supplier performance governance was expanded to include quality, OTIF, sustainability, and commercial performance.
Historical spend, supplier performance, and packaging specifications were analyzed across manufacturing locations to identify duplicate SKUs, specification overlaps, and sourcing opportunities. Should-cost models linked to kraft paper indices established a transparent commercial baseline, supporting competitive sourcing across pre-qualified suppliers and the consolidation of the supplier base into a smaller group of strategic partners. Delivered-at-Plant commercial structures, dual sourcing, vendor-managed inventory, and index-linked pricing mechanisms further strengthened supply continuity and commercial governance. The programme also incorporated packaging value engineering to improve both operational and environmental performance. Standardized box designs reduced specification complexity, while engineering assessments optimized GSM requirements without affecting packaging integrity. Recycled corrugated board was introduced for suitable applications, returnable packaging solutions were deployed for selected B2B movements, and supplier performance governance was expanded to include quality, OTIF, sustainability, and commercial performance.
The supplier base was streamlined from 22 suppliers to 9 strategic partners, delivering 11–12% sustainable cost savings across corrugated packaging procurement. Packaging specifications were reduced by approximately 75%, improving purchasing consistency while simplifying inventory management across manufacturing locations. The sustainability benefits were equally significant. Corrugated packaging incorporating 30% recycled content replaced virgin fibre across suitable product categories, contributing to an estimated 18% reduction in Scope 3 packaging emissions. Combined with index-based pricing, vendor-managed inventory, and structured supplier governance, the organization established a procurement model that strengthened commercial resilience while advancing its packaging sustainability objectives.
The next chapter of success starts with one conversation.
Talk to our Experts