{"id":718,"date":"2017-08-30T21:20:17","date_gmt":"2017-08-30T21:20:17","guid":{"rendered":"https:\/\/hold-true.com\/?p=718"},"modified":"2017-08-30T21:37:56","modified_gmt":"2017-08-30T21:37:56","slug":"dunnage-costs","status":"publish","type":"post","link":"https:\/\/hold-true.com\/2017\/08\/dunnage-costs\/","title":{"rendered":"Rack Bag ROI: Calculate Your True Dunnage Costs"},"content":{"rendered":"

What are your dunnage costs? What are really paying for parts bags? If you don\u2019t know your true packaging costs, your return on investment (ROI) may be less than you thought. Even worse, you may be paying a lot more than you should for parts bags. Consider the following example.<\/p>\n

Purchase Price and Dunnage Costs<\/h2>\n

Vendor A offers you 500 rack bags at $500 each. That\u2019s a quarter-million dollar ($250,000) investment. You think you\u2019re getting a good deal because Vendor B offered you rack bags at $750 each for a total of $375,000 across your fleet. All sewn fabric dunnage is the same, right? By paying Vendor A\u2019s $500 per bag instead of Vendor B\u2019s $750 per bag, you can save the company $125,000 up front. The Purchasing Department thinks you\u2019re a hero and you\u2019re ready to ask your boss for a raise.<\/p>\n

There\u2019s a problem, however. It\u2019s not a small one either. Vendor A\u2019s fabric dunnage will last two years if you\u2019re lucky. Vendor B\u2019s rack bags will last a solid four years. Over the course of a four-year period then, you\u2019ll need to buy twice as many rack bags from Vendor A as you would from Vendor B. That\u2019s when you realize the Finance Department will call you a zero instead of a hero if you don\u2019t forecast your costs.<\/p>\n

If you buy fabric dunnage from Vendor A, the lower unit price ($500) will require a higher expenditure overall ($500,000 for 1000 rack bags). In other words, Vendor A\u2019s $250,000 quote looks like a savings, but it\u2019s really 50% less than what you\u2019d need to spend. When you compare Vendor A\u2019s $500,000 to Vendor B\u2019s $375,000, you nearly fall out of your chair. Choosing Vendor A won\u2019t save you $125,000. Instead, you\u2019ll pay Vendor A $125,000 more!<\/p>\n

Maintenance and Repairs<\/h2>\n

The numbers in this example are simple, but don\u2019t discount them because the math isn\u2019t complex. If you want to find fault, however, it\u2019s that the comparison doesn\u2019t account for some additional costs. For each rack bag that fails, let\u2019s say that your company pays $100 in labor to change-out the bag. This means that during a four-year period, you\u2019d spend $50,000 to change-out all 500 of the rack bags that you bought from Vendor A.<\/p>\n

That\u2019s not the only problem. Vendor A\u2019s rack bags don\u2019t just fail because of lower-quality materials or manufacturing defects. Part of the reason the dunnage<\/a> doesn\u2019t last is because of design. Vendor A received CAD files from your packaging designer and manufactured the rack bags exactly as specified. Vendor B looked at the CAD files, but also tested your parts with a prototype bag. After loading and unloading some sharp parts, Vendor B recommended design changes<\/a> that increased puncture-resistance<\/a>.<\/p>\n

Maybe all of Vendor A\u2019s rack bags aren\u2019t punctured by sharp parts, but you\u2019ll still need to pay for some repairs. There\u2019s another cost to consider, too. If Vendor A\u2019s dunnage doesn\u2019t protect high-value parts from scratching, you\u2019ll have to pay for replacements. There could also be idle time on the assembly line if workers don\u2019t have the parts they need to get the job done. Labor and material costs vary, but the bottom line is that Vendor A is costing you more.<\/p>\n

Control Dunnage Costs with Hold-True<\/h2>\n

Hold-True is a Made in the USA manufacturer<\/a> of sewn fabric dunnage that uses high-quality materials and expert manufacturing to give you the rack bags that you really need. We don\u2019t just look at your CAD files either. Instead, through what we call \u201canalog design\u201d, Hold-True tests your parts in prototype bags under real-world conditions. Our rack bags may cost more up-front, but they deliver greater ROI because they last longer. To learn more, contact us<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

What are your dunnage costs? What are really paying for parts bags? If you don\u2019t know your true packaging costs, your return on investment (ROI) may be less than you thought. Even worse, you may be paying a lot more than you should for parts bags. Consider the following example. Purchase Price and Dunnage Costs […]<\/p>\n","protected":false},"author":6,"featured_media":724,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[37,13,38],"class_list":["post-718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rack-bag-costs","tag-dunnage-costs","tag-fabric-dunnage-costs","tag-packaging-costs","post-wrapper","thrv_wrapper"],"yoast_head":"\nDunnage Costs | Packaging Costs | Parts Bag Costs | WIP Bag Costs<\/title>\n<meta name=\"description\" content=\"What are your dunnage costs? 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