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Cost Leads All Decision-Making Factors in Packaging and Processing Operations

Almost three-quarters of industry representatives focus their decisions on cost above any other factor in packaging and processing operations.

Of 129 packaging and processing industry survey respondents, 70.5% say cost is their top focus in operations.
Of 129 packaging and processing industry survey respondents, 70.5% say cost is their top focus in operations.
PMMI Business Intelligence: 2023 Purchasing Plans and Priorities

Cost is by far the top priority in packaging and processing operations, according to PMMI Business Intelligence’s year-end 2022 survey findings shared in its report, “2023 Purchasing Plans and Priorities.”

Nearly three-quarters (70.5%) of the survey’s 129 packaging and processing machinery user respondents concur that cost reduction is a key driver in deciding whether to move forward with new projects or machinery purchases. 

“When we have a new project, we set KPIs and a budget,” one respondent explains. “While there are various decision-making factors, the most important are production costs, return on investment, and smooth operations.”

Quality, productivity, and reliability in packaging and processing operations

Aside from cost, over 50% of surveyed packaging and processing professionals say they focus on quality and productivity in operations.Aside from cost, over 50% of surveyed packaging and processing professionals say they focus on quality and productivity in operations.PMMI Business Intelligence: 2023 Purchasing Plans and PrioritiesFollowing and highly related to cost, quality (57.4%), productivity (57.4%), and reliability (49.6%) are the next most emphasized operational priorities.

Surveyed companies define quality as robust and reliable machinery that operates according to specifications and is precise and easy to operate and maintain.

Quality, productivity, and reliability are largely intertwined, and all impact cost and return on investment (ROI).

Consumer packaged goods companies (CPGs) increasingly seek predictive maintenance and remote monitoring to ensure productivity and reliability. Packaging machinery companies addressing these factors offer a meaningful competitive advantage.

“Non-scheduled downtimes represent huge costs,” says another survey respondent. “Machinery that features lights and alarms in the HMI when service is required or when a problem is detected before becoming something major is highly valued.”

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