The Category in Brief

An industry that has undergone, massive consolidation, this category is represented by large multi-national companies and a handful of independent regional suppliers.  The category includes all forms of corrugated packaging:

  • RSC boxes
  • HSC boxes
  • Die Cut
  • Sheets
  • Printed
  • White
  • Kraft
  • Litho-Laminated
  • Pre-Printed Liners
  • Micro-flute

The Challenges for Buyers

The massive trend of supplier consolidation in this category favors the largest buyers with enough clout to negotiate with the remaining large suppliers. Corrugated suppliers often manage pricing on the basis of customer size, versus the cost to serve. As a result, companies often take on larger inventory than necessary to take advantage of supplier volume price points.  Most buyers perceive Corrugated Supplies as a non-strategic spend and approach the category on a ‘bid and ask’ basis.  This often takes the approach of an RFP referencing a list of size requirements.  This gives the advantage to the seller, since the buyer has no way of accurately determining the real cost of materials, etc.  The volatility of the underlying paper market is often used as an excuse for suppliers to improve margin on new and existing contracts.  All of these situations make the category an expensive and frustrating expense area.

TPDgroup Can Help

TPDgroup has client master supply agreements in place with most of the major national and many, many local and regional suppliers and buys a significant amount of corrugated packaging nationwide. Members have typically saved between 15-35% in this category, thanks to our relationships.  Our MATRIX pricing model allows for larger and smaller client pricing to be treated consistently resulting in significant savings. Our Master Agreement Template call for standardized, rational treatment of underlying commodity increases and decreases. In short, our contracts are competitive with the largest national buyers.

Contact us for a FREE Benchmark Analysis of your Corrugated Supplies expenditures.