Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
Packaging Procurement Strategy — Definition and How to Create One
Table of contents
- What is a Packaging Procurement Strategy?
- Why Packaging Matters in Procurement
- 3 Main Types of Packaging in Procurement
- How to Create a Packaging Procurement Strategy in 7 Steps
- 5 Key Factors to Consider in a Packaging Procurement Strategy
- 10 Common Packaging Procurement Mistakes
- Conclusion
- Frequently asked questions
- Packaging procurement strategy is a structured way of deciding how packaging is sourced, not just who supplies it or how much it costs.
- Looking beyond unit price helps align packaging choices with product protection, logistics efficiency, and business needs.
- A basic packaging procurement strategy enables buyers to avoid common mistakes such as over-packaging, unnecessary costs, and unreliable suppliers.
What is a Packaging Procurement Strategy?
Packaging procurement strategy is a structured approach to sourcing packaging materials and services in a way that supports the product, the supply chain, and business objectives.
Instead of treating packaging as a simple operational purchase, this strategy focuses on making informed decisions about what type of packaging to buy, from which suppliers, and under what conditions. The goal is to ensure that packaging is fit for purpose, cost-effective, available when needed, and aligned with basic sustainability requirements.
In practice, a packaging procurement strategy helps procurement teams move from reactive buying to a more consistent and planned approach. By defining basic requirements and evaluation criteria, buyers can reduce risk, control costs, and improve coordination with suppliers and internal stakeholders.
Why Packaging Matters in Procurement
Packaging directly affects cost, product protection, logistics efficiency, and customer experience.
From a procurement perspective, packaging is more than a supporting material. Poor packaging choices increase transport costs, cause product damage, and create storage and supply chain inefficiencies. Well-chosen packaging, on the other hand, protects the product, improves handling and transport, and supports reliable operations.
Packaging decisions also influence supplier selection and planning. Lead times, material availability, and quality consistency all impact procurement performance, while even small packaging changes can significantly affect total cost.
3 Main Types of Packaging in Procurement
Packaging in procurement is usually grouped into three main types. Understanding these categories helps buyers define requirements correctly and avoid unnecessary cost or complexity.
1. Primary packaging is the packaging that comes into direct contact with the product. Examples include bottles, jars, blister packs, or food wrappers. From a procurement perspective, primary packaging is critical because it affects product safety, compliance, shelf life, and customer perception.
2. Secondary packaging groups primary packages together for easier handling, storage, and transport. Typical examples are cartons, boxes, or shrink wrap. Procurement decisions at this level often focus on cost efficiency, standardization, and compatibility with logistics processes.
3. Tertiary packaging is used for bulk handling and transportation. This includes pallets, stretch wrap, and strapping. While it is rarely seen by end customers, tertiary packaging has a strong impact on transportation costs, warehouse efficiency, and damage prevention.
How to Create a Packaging Procurement Strategy in 7 Steps
This is a practical packaging procurement guide designed for entry-level professionals. Each step explains what to do and shows how it works in practice.
Step 1: Define What Packaging is Needed and Why
The first step is to clearly define what the packaging is expected to achieve. Packaging is not only about wrapping a product. It protects the product during storage and transport, supports efficient handling, and influences customer perception.
Procurement should work with operations and quality teams to understand product sensitivity, handling requirements, storage conditions, and any regulatory or safety constraints. Defining the purpose prevents both under-packaging, which leads to damage, and over-packaging, which drives unnecessary cost.
Example:
A buyer confirms that fragile products require reinforced packaging, while non-fragile items can use lighter materials without increasing risk.
Step 2: Identify the Packaging Types in Scope
Packaging decisions should be structured by separating primary, secondary, and tertiary packaging. Each type serves a different purpose and should be sourced using different decision criteria.
Primary packaging often has compliance and quality constraints, while secondary and tertiary packaging offer more flexibility for cost optimization and standardization. Treating all packaging the same usually leads to poor trade-offs.
Example:
Primary packaging remains fixed due to compliance rules, while secondary packaging is selected for cost and logistics efficiency.
Step 3: Define Simple Evaluation Criteria
Before engaging suppliers, procurement must translate product and operational needs into clear packaging requirements. Vague requirements lead to inconsistent quotes and poor comparability.
Requirements should balance protection, usability, availability, and sustainability without unnecessary technical complexity. Clear requirements also reduce rework and misunderstandings with suppliers.
Example:
Instead of asking for “strong cartons,” procurement specifies load capacity, material type, and acceptable tolerance levels.
Step 4: Compare Options Using a Basic Total Cost View
Packaging decisions should be evaluated based on their total cost impact. Unit price alone does not reflect transport efficiency, damage risk, storage utilization, or waste.
Procurement should create a simple total cost view that compares packaging options using the same assumptions. Even basic calculations significantly improve decision quality.
Example:
A slightly higher-priced box reduces product damage and improves pallet stacking, resulting in a lower total cost per shipped unit.
Step 5: Select and Test Suppliers
Supplier selection should not end with price comparison. Packaging must perform reliably in real operating conditions.
Procurement should request samples and conduct pilot tests to validate quality, consistency, and ease of use. Testing reduces the risk of post-implementation issues.
Example:
Trial shipments show that one supplier’s packaging deforms under stacking pressure, leading to its elimination from the shortlist.
Step 6: Agree on Clear Ordering and Quality Rules
Once a supplier is selected, procurement must ensure that packaging specifications are consistently applied. Without clear ordering and quality rules, suppliers may change materials or formats over time.
Defining approval processes, quality checks, and escalation rules helps maintain stability and control.
Example:
All packaging changes require written approval, preventing unapproved material substitutions that could increase damage rates.
Step 7: Review and Improve Regularly
Packaging procurement is an ongoing process. Changes in volumes, suppliers, and logistics conditions require periodic review.
Regular performance checks help identify opportunities to reduce cost, improve sustainability, or enhance operational efficiency without disrupting supply.
Example:
Quarterly reviews identify opportunities to reduce packaging material without increasing damage rates.
5 Key Factors to Consider in a Packaging Procurement Strategy
1. Cost
Cost is important, but it should not be considered in isolation. Unit price must be evaluated together with transportation, storage, damage rates, and waste. Low-cost packaging can increase total cost if it creates inefficiencies elsewhere in the supply chain.
2. Quality and fitness for purpose
Packaging must protect the product throughout storage and transportation. Poor-quality packaging increases the risk of damage, returns, and customer complaints, directly affecting procurement performance.
3. Supplier reliability and availability
Lead times, minimum order quantities, and production capacity influence how effectively procurement can support operations. Reliable suppliers reduce the risk of disruptions and last-minute purchases.
4. Standardization
Using standardized packaging formats where possible simplifies procurement, improves negotiating power, and reduces complexity in logistics and warehousing.
5. Sustainability requirements
Basic sustainability expectations such as recyclable materials, reduced packaging volume, and compliance with environmental standards are increasingly relevant, even at an entry level.
10 Common Packaging Procurement Mistakes
Conclusion
A packaging procurement strategy provides procurement teams with a structured way to make better packaging decisions. Instead of reacting to shortages, price increases, or quality issues, procurement can plan packaging sourcing in a consistent and controlled manner.
By understanding why packaging matters, distinguishing between packaging types, applying simple evaluation criteria, and following a clear step-by-step approach, even entry-level buyers can reduce cost, improve logistics efficiency, and avoid common procurement mistakes. Packaging decisions do not need to be complex to be effective. What matters most is clarity, consistency, and the ability to look beyond unit price.
Frequentlyasked questions
What is a packaging procurement strategy?
A packaging procurement strategy is a structured way of deciding how packaging is sourced to support product protection, logistics efficiency, cost control, and sustainability. It focuses on making consistent, informed decisions rather than ad-hoc purchasing based only on price.
Is packaging procurement only about cost savings?
No. While cost is important, packaging procurement also affects transport efficiency, damage rates, storage utilization, customer experience, and environmental impact. A good strategy balances cost with quality, reliability, and operational needs.
Who should be involved in packaging procurement decisions?
Packaging procurement should involve procurement, operations, quality, and sometimes marketing. Collaboration ensures that packaging meets technical requirements while remaining cost-effective and easy to manage.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.
