This time of year is common for companies to review pricing agreements and look for cost reductions in order to help the budget for the coming year. This requires sharing information between both the customer and supplier in order to identify lower cost options. Here are 5 areas that may help lower your label or nameplate cost without sacrificing quality product.
1 - Material Options
It can be helpful to review the material that is used for your nameplate or label. Unless a specific thickness or type of material is called for due to the part fitting into a recessed area or has requirement to pass certain tests, there may be alternatives available. Aluminum and stainless steel come in a variety of thicknesses. The same goes for polycarbonate and polyester substrates. A thinner part can translate to a lower cost without compromising quality or durability.
2 - Standardize Label Size
Is there an opportunity to standardize label sizes across your products? Do you find the same information needs to be called out on different types of labels? Standardizing label
sizes across product lines presents a great cost-saving opportunity. Making use of a common shape and size of a nameplate can also contribute to positive brand awareness in the market.
3 - Consolidate Suppliers
Are you aware of all of the types of products that are available with each supplier? Companies with multiple product lines may have more than one supplier for similar components. Look for opportunity to consolidate suppliers by putting your entire label or nameplate spend out for bid and leverage the increased size for price breaks.
McLoone has capabilities to produce durable nameplates and labels on metal and plastic substrates. We are able to take care of both decorative and functional product identification so that all your label and branding needs can be satisfied with us.
4 - Order Patterns
There can be opportunity for cost savings by taking advantage of quantity price breaks. Rather than placing a single spot buy once a month, can you forecast your label needs throughout the year? Evaluate opportunity to consolidate quantities with less frequent orders. Be aware of your future needs and look for opportunities to maximize price breaks.
5 - Production Processes
Similar to reviewing for alternative material, it can be helpful to review the artwork and design to identify any non-value added processes or colors that could be re-engineered. This part of cost reduction means taking time to understand the objective of the label or nameplate as well as if there are specific regulations or compliance directives that mandate certain types of material or marking.
Communication with your supply chain as early in the process of pricing review or new product introduction helps balance price with value. Just because one supplier offers a lower price, also consider how that supplier compares in quality and delivery.
Cost reduction initiatives involve investigation into all the areas that affect the supply of labels and nameplates. It can be worthwhile to review material and label size for equivalent options or better manufacturing layout. Additionally, reviewing your future needs and order patterns can identify opportunities for price breaks based on quantity.
Our helpful Customer Care team is happy to work with you and identify the most cost effective ordering solution.
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