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What Running Out of Packaging Costs Your Plant

A $40 case of tape stops a line worth thousands in an hour. When packaging runs out, you pay for idle labor, lost output, rush freight, and late shipments. VMI prevents stockouts by counting your supplies on a schedule, so the shelf never hits zero.

The product is made. The truck is booked. The line stops because the last box of cases went into the compactor an hour ago.

Packaging is one of the cheapest things in your plant, until it’s gone.

Five Costs of a Packaging Stockout

  • Idle labor. Your packing crew still gets paid while the line waits.
  • Lost output. Every hour down is product you can’t ship today.
  • Rush freight. Next-day delivery on boxes often costs more than the boxes.
  • A wrong-size box from the back shelf means extra void fill, extra tape, and more damage in transit.
  • Late shipments. Missed ship dates cost chargebacks and customer trust.

 

Unplanned downtime costs the world’s 500 largest companies about 11% of their revenue each year, according to a 2024 Siemens study. A packaging stockout is downtime you can prevent with a calendar.

Why Stockouts Happen

  • One person owns the count, and that person is out.
  • Usage jumps with a big order and nobody adjusts the reorder point.
  • An order sits in someone’s inbox waiting for approval.
  • The supplier is out, and nobody hears until delivery day.

Run the Numbers

Pick your last stockout and add it up:

  1. Hours the line sat idle x crew size x loaded hourly rate.
  2. Units not packed x margin per unit.
  3. Rush freight paid.
  4. Chargebacks or penalties from late orders.

A crew of 6 at $25 an hour, idle for 3 hours, costs $450 in labor before you count lost output or freight.

Ready to Start?

No S&S VMI customer has ever run out of product. Send us a list of the supplies you’ve run short on this year, and we’ll set levels so you don’t again.

S&S Incorporated · Packaging made easy since 1965 21300 St. Clair Avenue, Cleveland, OH 44117 216-383-1880 · info@sspkg.com · www.sspackaging.com Monday–Friday, 7:00 AM–3:30 PM