Why Packaging is Eating Your Profit Margin

Ask any supply chain executive where their biggest cost pressures are, and you’ll hear the same answers: labor, freight, and automation investment. Packaging rarely makes the list. Yet packaging is the one operational variable that touches every single one of those categories. 

Driving up labor costs when it fails, grounding automation when it jams, and emptying trailer space when it can’t stack. The blind spot isn’t the box. It’s the way we’ve been accounting for it.

Most organizations treat packaging as a simple line item in procurement. Buy cheap, move on. But this framing is dangerously incomplete, and it’s costing the industry millions in costs that never appear on the packaging budget.

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