The hidden cost of the wrong film
Line downtime, breakage, audit issues. The cost of cheap film adds up faster than you think.
What does choosing the wrong type of film really cost?
Suppose you bought film at 1.80 euros per kilo instead of 2.10 euros per kilo. At 200 tonnes per year, that would be a saving of sixty thousand euros. On paper. In practice, things turn out differently. Below is the actual breakdown of what a cheap or incorrect choice of film can cost you. With figures.
Cost item 1: line downtime
One hour of production downtime on a modern packaging line costs on average between 800 and 2,500 euros, depending on your product value, your operator costs and your downstream loss of productivity. A cheaper film that causes one extra hour of downtime each week due to breakage or sealing problems will cost you between 40,000 and 130,000 euros annually. The savings on film procurement are usually wiped out within three months.
Cost item 2: breakage and wastage
Film that breaks during transport or storage leads to product wastage. For low-value products, this may amount to the price of the contents. For high-value food, pharmaceutical or cosmetic products, this amounts to tens or even hundreds of euros per damaged unit. A single leak in a customer’s trolley can destroy a commercial relationship that has taken years to build.
Cost item 3: audit non-conformity
A non-conformity in your BRC or IFS audit due to inadequate film documentation triggers a rapid chain of events: corrective action, re-inspection and, possibly, a re-audit. Expect internal and external costs of at least 5,000 to 15,000 euros, plus the knock-on impact on your commercial position if a retailer temporarily suspends you from placing new orders.
Cost item 4: complaint and returns handling
A serious customer complaint about packaging typically costs between 800 and 2,500 euros in administration, reshipment, transport and customer service. Ten complaints a year due to an incorrectly chosen film can thus amount to between 15,000 and 25,000 euros, not including reputational damage.
The realistic TCO comparison
Here you can see why purchase price alone is a misleading guide. The Total Cost of Ownership for your film must take into account:
- Purchase price per kilo
- Consumption per packaged unit (thinner film can work out cheaper, even at a higher price per kilo)
- Line speed that the film allows
- Expected downtime rate
- Audit and compliance records
- Complaints statistics for similar applications
Work this out for your two top candidates and you’ll often find that the most expensive film per kilo is actually the cheapest on a TCO basis.
How to avoid this
Three key factors that make all the difference.
One: technical advice before purchase. Not a catalogue order, but a discussion about your production line, your product, your machinery and your audits.
Two: a trial batch on your own production line before you sign an annual contract. A targeted test lasting a few weeks provides data that no data sheet can give you.
Three: a supplier relationship where you can provide feedback whenever something goes wrong. A manufacturer who works with you is your safeguard against hidden costs.
Are you unsure whether your current film is the right choice, or are you paying hidden costs due to failure? Discuss your packaging needs.