The Right Third Party Logistics Partner Can Add Sustainability
Today’s economic pressures have made shoppers more sophisticated than ever and supplement users are no exception. According to the Council for Responsible Nutrition (CRN), usage increased in 2009 with 65% of the U.S. adult population describing themselves as supplement users and more than 50% of consumers preferring green products. While natural product and supplement users seem to remain loyal to their preferred products, over 75% are not willing to pay more than a 10% premium for green products.
Implementing new strategies to “green” products, while keeping prices competitive with synthetic options is key to sustaining your business. Eliminating supply chain waste and lowering logistics costs are ways for natural products suppliers and manufacturers to trim expenses.
The Grocery Manufacturers Association reports that 6.9% of company sales are attributed to logistics, with nearly 40% of these costs going to transportation. As a third party transportation provider, Ware-Pak Nutraceuticals has established valuable relationships with many domestic and international carriers. Large daily volume and a broader range of services achieve lower shipping rates and a Midwest location results in less time in-transit. It is not uncommon for Ware-Pak to achieve savings of 5% to 7% on shipping costs compared to facilities located on the east or west coast. This can drive thousands of dollars back to your bottom line.
Reduced transit time also means a reduced carbon footprint, with reduced greenhouse gas emissions and a higher sustainability rating. As a supplier, lowering costs will enable you to focus more of your resources on sales and marketing, thereby increasing your overall business.
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