If you’re sourcing packaging for your company—whether it’s aluminum trays for ready meals, insulated coffee cup sleeves, or branded poly bags—you’ve probably noticed that unit prices don’t tell the full story. Over the past 6 years of managing a $180,000 annual packaging budget, I’ve learned that the lowest quote often ends up costing the most. This checklist is for procurement managers who want to evaluate suppliers by total cost of ownership (TCO), not just sticker price. It’ll take you through 8 steps you can apply to your next sourcing round.
When to Use This Checklist
Use this when you are:
- Comparing 3+ packaging suppliers for a repeat order or new product launch
- Reviewing an existing supplier’s annual pricing and looking for savings
- Switching from one material type to another (e.g., plastic to aluminum) and need to compare total cost
- Setting up a new vendor portal account (like Laddawn Berry Global login) to manage orders
This isn’t a theoretical exercise—I’ve used this exact approach to cut my department’s overall packaging spend by 17% over two years. Let’s walk through it step by step.
Step 1: Define Your Packaging Requirements in Detail
Before you even look at a quote, write down exactly what you need. Vague specs produce vague pricing. Include:
- Product type and dimensions – e.g., “insulated cup for coffee, 12 oz, double-wall, with a diameter of 3.5” at the rim”
- Material specification – e.g., “aluminum foil laminate with a 0.3mm thickness, food-grade coating”
- Quantity and order frequency – 10,000 units per month or 50,000 quarterly
- Packaging format – bulk, retail-ready, display-ready
- Design elements – any custom printing, logo, or letterhead-style branding on the package
I’ve made the mistake of skipping this step and asking for “a box for a 12 oz cup.” Two suppliers quoted wildly different prices because one assumed corrugated board and the other assumed rigid paperboard. Write it down (circa 2024, I created a standard requirement template that now lives in our procurement drive).
Step 2: Research Potential Suppliers—Including Their Portals
Don’t limit yourself to three big names (Berry Global, Amcor, Sealed Air) but do include them because their scale often brings cost advantages. Many global suppliers offer online portals to manage quotes, orders, and tracking. For example, the Laddawn Berry Global login lets you see real-time inventory and past order history—useful for verifying that the pricing on your spreadsheet matches what you actually paid.
When researching, check:
- Do they offer the specific technology you need? (e.g., Berry Global’s aluminum packaging technology for high-barrier applications)
- Can they create an online catalog from PDF of your existing packaging specs? Some suppliers do this for free, letting you browse options without re-entering everything.
- Do they have a dedicated customer portal for reordering? That saves your team hours of emailing.
Step 3: Request Quotes That Include All Cost Components
This is where the value-over-price mindset kicks in. Ask each supplier for a breakdown that includes:
- Unit price for the base quantity
- Tooling / die costs (one-time or amortized over volume)
- Setup fees per order
- Packaging of the packaging (some ship in cartons, others in bulk pallets—affects your handling cost)
- Shipping terms (FOB vs. DDP, and typical freight cost per order)
- Minimum order quantities and any incremental pricing breaks
To be fair, some suppliers will resist giving you this level of detail. That’s a red flag. A reputable supplier like Berry Global will provide a transparent quote. You can use that transparency to build a TCO spreadsheet. I’ve built mine in Excel (or Google Sheets), with columns for each cost category and a formula that sums it all up over a 12-month volume.
Step 4: Calculate Total Cost of Ownership (TCO) Over 12 Months
Here’s a simple formula I use:
TCO = (Unit Price × Annual Volume) + (Tooling Amortization) + (Setup Fees × Number of Orders) + (Annual Freight) + (Cost of Quality Failures)
The last item—cost of quality failures—is often ignored. I once compared two suppliers for an insulated coffee cup lid. Supplier A charged $0.12/lid, Supplier B $0.10. I almost went with B until I calculated that Supplier A had a documented defect rate of 0.3% versus Supplier B’s 2.1%. With an annual volume of 500,000 lids, Supplier B would cause about 10,500 defective lids. At $0.50 each to re-manufacture and re-ship, that’s $5,250 in hidden cost—more than the $10,000 savings in unit price. Supplier A’s TCO was actually lower.
Checkpoint: Run this calculation for every supplier. If you don’t have defect data, ask for it. Or better, ask for samples and do your own quality check.
Step 5: Evaluate Technical Capability and Flexibility
Not every supplier can handle a switch from plastic to aluminum, or from standard shapes to custom die-cuts. If your product line includes an insulated cup for coffee that needs a foil laminate inner layer, you want a supplier with aluminum packaging expertise. Berry Global’s aluminum technology is specifically designed for high-barrier applications—things that need to keep heat in and oxygen out.
Also ask:
- Can they handle how to design a letterhead for your packaging? (Even if it’s just a simple brand mark, some suppliers offer graphic design support.)
- Can they create an online catalog from PDF of your existing packaging specs? That’s a huge time-saver when you’re managing dozens of SKUs.
- Do they offer digital proofing before production?
I’m not a design expert, so I can’t judge a beautifully laid-out letterhead. What I can tell you from a procurement perspective is: if a supplier offers a free online proofing tool, your internal marketing team will approve faster, reducing back-and-forth costs.
Step 6: Check Logistics and Lead Time Reliability
Speed often carries a premium, but reliability is worth more. I’ve seen suppliers quote 3-day lead times that consistently miss by a week, while others quote 7 days and hit 99% on time. When you’re shipping insulated cups for a promotional event, missing the deadline can cost thousands in lost sales.
For each supplier, ask for:
- Standard lead time
- Rush lead time and premium cost
- On-time delivery percentage over the past 12 months (request a report)
- Shipping carrier and options (ground, air, LTL, etc.)
Honestly, I’m not sure why some suppliers consistently beat their quoted timelines while others don’t. My best guess is it has to do with internal buffer practices and how they schedule changeovers. But from a procurement standpoint, I track it: I have a spreadsheet that logs every PO and actual delivery date. It takes 15 minutes per month and has saved us from choosing the wrong supplier more than once.
Step 7: Review Quality Assurance and Compliance
For food packaging (like coffee cups) or pharmaceutical packaging, certifications matter. Check:
- ISO 9001 (quality management)
- FSSC 22000 or SQF (food safety)
- FTC Green Guides compliance if you plan to make recyclability claims
Per the FTC Green Guides, a product claimed as “recyclable” should be recyclable in areas where at least 60% of consumers have access. If your packaging supplier uses that claim, they should be able to provide substantiation. (Source: FTC 16 CFR Part 260)
Also, if you’re designing a letterhead for your corporate packaging—say a branded outer carton—make sure the supplier can meet the same color-matching standards you’d expect from a print shop.
Step 8: Pilot Before Committing
Even after all the analysis, a full rollout is risky. I always run a pilot order of 10-20% of annual volume. During the pilot, I track:
- Actual defect rate (measure three batches)
- Lead time adherence
- Communication responsiveness
- Invoice accuracy
One caution: I knew I should test a full production run before switching suppliers for our insulated cup line. But I thought, “We’ve done this for years, what could go wrong?” Well, the new supplier’s aluminum layer delaminated during sealing. We had to redo 8,000 units—a $1,200 mistake. That “what are the odds” moment taught me to always pilot.
Common Pitfalls to Avoid
- Ignoring setup fees – A $0.01 lower unit price can vanish if the supplier charges a $500 setup fee every time you reorder.
- Overlooking shipping costs – One supplier quoted 5% lower total cost, but their freight was always more expensive because they ship from a different distribution center. Always ask for DDP (Delivered Duty Paid) quotes.
- Not considering total cost of quality failures – As illustrated above, a 2% defect rate can easily wipe out a 10% unit price advantage.
- Using “most expensive” or “cheapest” as a shortcut – I once rejected a supplier with a unit price that was 15% above the average. Their TCO turned out to be 8% lower than the cheapest option because they included free setup, free samples, and had a near-zero defect rate. (I only discovered this because I forced myself to run the TCO model for all six vendors in the bid.)
Final Pro-Tip: Use Supplier Portals to Your Advantage
Many suppliers now offer web-based portals where you can view pricing history, reorder past purchases, and track shipments. For instance, the Laddawn Berry Global login gives you access to your entire order history—so you can spot pricing changes over time. If you’re responsible for multiple product lines, ask your supplier if they can create an online catalog from PDF of your specs. That way, ordering a repeat of your insulated cup or a re-print of your letterhead becomes a few clicks instead of a week of emails.
This checklist has saved my team thousands—not by squeezing unit prices, but by looking at the full picture. The next time you’re evaluating packaging suppliers, skip the gut feeling and run these eight steps. Your CFO will thank you.
