Box Buyers Survey 2007: Box Buyers Expect and Receive More

Seventy-five percent of manufacturers are very satisfied with their main box supplier this year, which is higher than the 65 percent who felt this way the last time Paperboard Packaging conducted its Box Buyers Survey in 2004. Box buyer satisfaction is most frequently tied to product and customer service. By product, box buyers include quality, meeting their needs, order fulfillment, performance, and capabilities. By customer service, purchasers mean that box makers are responsive, solve problems, are dependable, have commitment, are easy to do business with, and are flexible.

Buying More This Year

Reasons for being Very Satisfied with Main Box Supplier

Most box buyers (49 percent) believe that the box-making industry is centered on pricing. "The integrateds are responsible for maintaining or increasing prices and have little to offer," says an Ohio business owner.

"I have received four price increases in the past year with the explanation that they were due to energy prices. Since fuel prices have decreased recently, [I] would like to see some help coming back the other way," says a manufacturer from Tennessee.

Fourteen percent of box buyers mentioned industry consolidation was affecting them.

Drivers for Increased Volume of Box Buying in 2007

Length of Time Buying from Main Box Supplier

Box Buyer Loyalty

Nineteen percent of manufacturers have one box supplier, 37 percent have two, and 21 percent use three box suppliers. Seven percent have four suppliers and 16 percent order from five or more box suppliers. The survey data suggests that once a box supplier, pretty much, always a box supplier — unless the buyer is a price shopper.

Box Prices: More for Less Expected

The survey data shows that most box buyers (50 percent) are expecting prices to remain the same in 2007. Sixty percent are planning to increase the number of boxes they buy in 2007.

Prices, Budget, and Volume in 2007

The key driver for buying more boxes next year will be increased sales.

Who Buys Boxes and How Often?

Paperboard Packaging's 2007 Box Buyer Survey shows that two or three purchasing departments at manufacturing businesses are purchasing boxes daily, this compares to 22 percent of general management being daily purchasers. On average, individuals purchasing boxes have 13 years of experience in purchasing boxes.

Most box purchasing (55 percent) comes under the purview of two to three people. Only 15 percent of box buying is done by one person. Moreover, when one person is involved, it is likely to be an occasional purchase two-thirds of the time. Sixteen percent of manufacturers have four to five people involved in purchasing boxes and 14 percent report more than five people controlling the purchases.

What's Important to Box Buyers

The must have quality control for box makers is zero defects — it's the most important consideration for box buyers, especially for purchasing departments.

Box Buying Frequency

While supply chain innovations are not at all important to 42 percent of management, it is very important to individuals in purchasing. Box manufacturers would be misled talking to management only about this service.

The data shows that manufacturers purchasing boxes daily want their boxes within 24 hours. While 24-hour turnaround is less important for manufacturers placing orders for boxes once a week, box makers not offering same-day turnaround could quickly lose those lucrative daily orders.

Most individuals in purchasing departments consider ISO certification for box makers somewhat important and 69 percent of management says it is not at all important.

High-end graphics are very important to one in four individuals in purchasing departments. However, the reader should consider that this result is likely correlated to box specifications.

The topic of other materials has a polarizing effect. However, it is likely that most individuals, or 57 percent, of purchasing departments are not at all interested in hearing about other materials when they are purchasing boxes. On the other hand, most of management, or 54 percent, considers other materials somewhat important. Box makers offering other materials would be advised to approach management before the purchasing department.

What Factors Are Important to Box Buyers

While individuals in purchasing departments might recognize the potential of RFID, management, at this point, is, essentially, not interested.

Other Factors Important to Box Buyers

Interest in other factors is similar across the board and is represented on one graph on). Two-thirds of box buyers consider structural design very important. One in three has an interest in recycled materials, fulfillment services, and graphic design. One in five has an interest in online ordering and consulting services. Returnable plastic crates are of no interest to box buyers at this time.

Box buyers expect really fast delivery from box makers — two out of five buying boxes every day expect delivery in 24 hours. One-third buying boxes every week expect delivery in three days; those ordering boxes once a month expect the boxes to arrive within a week. The data suggests that box buyers have become more demanding in their expectations for fast delivery over the last three years.

Methodology

Corrugated boxes are the most frequent type of boxes being purchased by manufacturers today. Interest in folding cartons has increased dramatically over the last three years from 54 percent in 2004 to 70 percent incidence in 2006. Likewise for P-O-P display where interest has grown from 14 percent three years ago to 27 percent buying displays in 2007.

Other Factors Important to Box Buyers

Interest in small flute (21 percent), rigid boxes (16 percent), and high-end graphics (11 percent) is pretty much the same in 2007 as it was in 2004.

Most box buyers also buy bubble wrap and flexible packaging while 46 percent also buy foam. This study suggests that interest in plastics as packaging has decreased in the last couple of years. In 2004, 54 percent of box buyers also bought plastics — this year only 40 percent will also buy plastics.

Where to Find Box Suppliers?

Three years ago, 57 percent of box buyers were surfing the Internet for suppliers — at this time, 72 percent of box buyers check for suppliers online. Packaging directories are a supplier source for 57 percent, with 35 percent relying on sales reps, and 35 percent check out trade journals. Other important ways to find suppliers is an internal supplier list, catalogs, and attendance at trade shows at all less than 30 percent.

The data shows that almost all individuals in purchasing have been visited by box makers' sales reps in the last two months. Sales reps visited management 73 percent of the time. Production and sales are much less likely to be visited at 28 percent of the time.

Esther Durkalski