In my pre-articles, the conception of “materials loss rate” had been mentioned frequently, however, as the industry secret of flexible packaging manufacturing, the supplier is seldom to negotiation this problem with theirs customers, even if the customers know such a conception, they also can not understand it thoroughly. So, what is it?

1-What is the materials loss rate

materials loss rate means the material loss during each production process of flexible packaging manufacturing, the different flexible packaging style, the different materials loss ratio to be(here we don’t elaborate on this concept).

2-Reasonable materials loss rate

In industry of flexi packaging, each types of flexible packaging all have a certain of reasonable materials loss rate(unwritten),however, these reasonable materials loss rate is all formulated theoretically, or its condition is quite harsh(based on the conditions of no unforeseen circumstances or neglect of quality problems),as per this standard, it required the supplier must own the top-level production hardware and software, but often, more than 90% of suppliers will beyond such a reasonable ratio.

3-Relationship with the cost structure

When each suppliers calculate the cost structure of each flexible packaging types, they will always focus on the problem of materials loss rate, as it relate to the benefit they earned, if they control the materials loss rate within the reasonable ratio, they earn these benefits, but if theirs materials loss rate beyond the reasonable ratio, that means they are going to lose these benefits they earned and must cover the materials loss of this part.

4-Relationship with the MOQ

Many customers didn’t understand why the MOQ of flexible packaging is always so high, surely, its MOQ is relate to many factors, but in the final analysis the materials loss rate is the most important key, if the materials loss rate is high, that means the MOQ of materials must be high as well, if the MOQ of flexible packaging style is low and the materials loss rate is high and theirs materials loss rate also beyond the reasonable ratio, that means the benefits of manufacturers will be compressed greatly, or even the benefits loss completely.

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