Packaging Should-Cost Analysis
A should-cost model for packaging rebuilds the supplier's price from the bottom up — materials, labor, overhead, margin — so you enter every negotiation with a defensible target instead of a "gut feel" discount.
Packaging often runs 3–8% of COGS but has one of the highest specification-driven savings potentials in the plant. The model exposes exactly where each dollar goes, so you can pressure the right lever instead of asking for a flat percentage off.
Right-sizing dimensions, downgauging film and consolidating SKUs typically deliver 8–20% savings. SourcingHub's should-cost engine builds this model in minutes, with the packaging-specific drivers pre-loaded.
Fields every Packaging should-cost analysis should cover
- Substrate & grade (corrugated flute, film thickness, resin)
- Dimensions and tolerances
- Print (colors, plates, ink coverage, minimum orders)
- Annual volume and delivery frequency
- Sustainability targets (% recycled, FSC, PCR)
- Payment terms and tooling ownership
How it works in SourcingHub
Choose the category — Packaging — and SourcingHub loads the should-cost analysis template pre-tuned for it.
A 5-minute guided brief captures scope, volume and constraints. AI fills the blanks with category benchmarks.
Download the should-cost analysis as Word or Excel, or send it directly to suppliers from SourcingHub.
Frequently asked
The essentials for packaging: current price, volume, and the drivers listed above (Substrate & grade (corrugated flute, film thickness, resin), Dimensions and tolerances, Print (colors, plates, ink coverage, minimum orders)). If you don't have every input, the model uses category benchmarks and flags each assumption.
No — the same logic (cost drivers × utilization × margin) works for services and indirect spend. In packaging, the drivers just shift from raw materials to labor rates, capacity, and pass-through costs.
Within ±5–10% of the supplier's own cost stack is enough to negotiate. The value comes from the conversation the model unlocks, not decimal-precise cost accounting.
Yes. Exports come in a clean executive format (PDF or Excel), and you can share redacted drivers or the full stack depending on your negotiation strategy.
Run your Packaging should-cost analysis now
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