specialized packaging
3 insights

In Made-to-Spec Production, the Quote Is the Only Place the Margin Is Decided

Paper Converters Hold Half Their Inventory in Raw Material and a Tenth in Production
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Selected writing from the practice.
All of the Growth in Paper Is in the Half That Has to Be Specified First
Paperboard containers added $1.99 billion of year-to-date shipments while the whole paper products sector added $1.85 billion. One subsector accounts for more than all the growth, and it is the one where every dollar arrives with a specification.
View insight →In Made-to-Spec Production, the Quote Is the Only Place the Margin Is Decided
Paper converters hold 51.7 percent of inventory as raw material against 41.5 percent for food manufacturers. That inversion traces back to the front of the process, where the specification, the price, and the schedule are all set at once.
View insight →Paper Converters Hold Half Their Inventory in Raw Material and a Tenth in Production
Census data puts 51.7 percent of paper products inventory in materials and supplies against 10.4 percent in work in process. For made-to-spec production, that ratio is a statement about what happens before a job reaches the floor.
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