Up to 20%
Packaging cost reduction across multiple SKUs
Driving Packaging and Packing Cost Savings through Cost Engineering
A major international toy manufacturer sought to optimize packaging and outsourced packing costs. Partnering with EFESO, the company leveraged cost engineering capabilities, validating savings of up to 20–30% across multiple SKUs while empowering the in-house procurement team.
Industry: Consumer Goods and Luxury
Service: Cost and Value Engineering
Service: Supply Chain
Our Client
A major international toy company designing and producing creative play solutions for children, with a diversified portfolio distributed worldwide through retail and digital channels.
The Challenge
The company aimed to implement cross-industry cost engineering capabilities, including CaaS technologies, to support procurement with relevant fact-based data, especially in markets with limited competitive supply.
Key challenges included:
- Reviewing key procurement commodities, such as packaging and outsourced product packing volumes.
- Ensuring purchasing teams had fact-based insights to drive supplier negotiations.
Real Results Achieved Together
The cost engineering initiative delivered measurable savings, validated processes, and empowered internal teams to sustain continuous improvements.
Up to 30%
Packing cost reduction across multiple SKUs
Transformation Impact
- Bottom-up process mapping and ‘should cost’ modeling implemented for packaging and packing scopes
- Empowered in-house cost engineering team to support procurement
- Standardized product cost optimization methodology for packaging boxes, leaflets, and perfect binds
- Validated savings opportunities across multiple SKUs, creating immediate financial impact
- Enhanced procurement capabilities with structured cost analysis (CSA) and supplier validation
- Established sustainable practices for ongoing cost optimization
Our Approach
EFESO partnered with the client to implement a structured cost engineering program:
- Product Cost Optimization – Packaging Boxes & Product Instructions
- Conducted Cost Structure Analysis (CSA)
- Performed supplier analysis and validation
- Product Cost Optimization – Outsourced Packing Scope
- Conducted CSA for outsourced packing
- Validated supplier costs and identified savings opportunities
- Process Mapping & Empowerment
- Mapped all packaging and packing scopes
- Built bottom-up ‘should cost’ models to guide procurement negotiations
- Empowered the in-house cost engineering team to sustain savings initiatives
Related Services
Cost and Value Engineering
Rising costs demand optimization from design through production. We apply cross-functional value engineering, zero-based redesign, and continuous cost tracking to protect margins.
Supply Chain
Supplier complexity obscures 70% of your value creation. We strengthen networks through supplier development programs, risk mitigation strategies, and collaborative innovation platforms.
Facing Similar Cost Optimization Challenges?
- Struggling to reduce packaging and outsourced packing costs across multiple SKUs
- Lacking fact-based data to support supplier negotiations
- Looking to empower internal procurement teams with structured cost engineering capabilities
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