Total Cost

Total Cost Approach at Nefab

The Nefab Total Cost Approach is a strategic methodology employed by Nefab Group to optimize packaging solutions. It aims to reduce overall costs while ensuring adequate product protection and minimizing environmental impact.

Nefab's Total Cost Approach is a comprehensive strategy aimed at optimizing packaging solutions to minimize the overall costs within the supply chain. This approach not only focuses on the immediate costs of packaging materials but also considers the broader spectrum of expenses associated with logistics, including transportation, handling, and storage.

The graph to the right highlights that this method looks beyond just the price of packaging materials to consider the full spectrum of logistics expenses, including transportation, handling, and storage. Key strategies include packaging optimization, supply chain analysis, administrative cost reduction, custom design solutions, and multi-material engineering. The goal is to reduce logistics costs for businesses while also aiming for sustainability in packaging solutions.

The Total Cost Index is an example of how Nefab's Total Cost Approach can generate savings at different points in the supply chain.

The following section also delves deeper into each of the key components of the Total Cost Approach.



Transportation Optimization: By tailoring packaging designs to the supply chain, Nefab can minimize transport costs. This involves fitting more products into each shipment, container, and truck, ultimately saving money on shipping expenses.

Streamlined Administration: Nefab’s complete packaging solutions offer Just-In-Time (JIT) deliveries and Vendor Managed Inventory (VMI) services. These improve delivery planning and transform fixed costs into variable ones, while also reducing working capital.

Space-Saving Warehousing: Nefab designs collapsible packaging solutions with optimal fill factor and stacking capability. This not only saves space in receiving areas and warehouses for finished goods but also contributes to efficient storage.

Effective Product Protection: Throughout the supply chain, packaging shields goods from stresses. The ingenious solution lies in achieving this protection with the minimum material, thereby optimizing costs related to packaging, damages, and claims.

Efficient Handling: A well-designed packaging solution should enable safe, easy, and fast packing and loading procedures. Reduced handling time allows you to focus on core processes rather than packing and packaging tasks.

Environmental Considerations: The choice of packaging material impacts waste management and disposal costs. Nefab also focuses on designing solutions that reduce environmental impact during production, transport, and end-of-life treatment.

Through these strategies, Nefab aims to significantly lower the total cost of logistics for companies by providing innovative and sustainable packaging solutions. The Total Cost Approach underscores Nefab's commitment to not only reducing costs but also minimizing the environmental footprint of packaging in the supply chain.