Unlocking best value through collaboration™ 
Packaging procurement

PACKAGING CASE STUDY  

Corrugated Packaging Tender and Benchmarking 

THE COMPANY  

A leading provider of fresh food at home and recipe boxes with multiple distribution centres across the UK 

THE SITUATION  

The company sources its cardboard boxes from a single supplier and was facing a 5% price increase due to changes in market dynamics. The current price structure has not been reviewed for a while, therfore a competitive tender was conducted with the aim of extracting value and innovation from the appointed corrugated packaging supplier. 

THE OBJECTIVE  

To avoid a 5% cost increase 

THE STRATEGY  

The strategy was to review current board specifications, aggregate and leverage the company’s buying power underpinned by a price escalation mechanism. 

THE APPROACH  

Working closely with the company, an open tendering process was undertaken with global and regional packaging firms invited to tender.The aim was to have a good understanding of market rates and use it to develop a negotiating strategy. 

THE OUTPUT  

• 14% price reduction 
• 5% cost avoidance 
• Consignment Stock 
• Quarterly reviews with value engineering proposals 
• Service credits for late deliveries 

CONTACT GATEWAY PROCUREMENT 01482 645 844 | enquiries@gatewayprocurement.co.uk   

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