What should I ask about a fulfilment business’s packing materials supply?

Packing materials are small items with a large effect on daily operations. Start by listing every supplier and the products each one provides. Note which materials are custom, such as printed boxes for a client, and which can be bought from several places.

Ask how orders are placed and timed. Does the team reorder by habit or by a measured system? Look at current stock and storage space, and ask whether shortages have ever slowed shipments. A fulfilment centre that has stopped work for a missing item will remember it.

Review supplier terms: contracts, payment terms, minimum orders and any pricing that changes with volume. Ask how material costs are billed to clients and whether price changes can be passed on promptly. Finally, ask whether one supplier holds the whole supply chain together. If so, ask what the backup plan is. Your accountant can help you see how supply costs move through the financial statements. Ask the receiving staff, too, since they know which deliveries arrive late, damaged or short and which supplier they would quietly prefer to drop. Ask about branded or custom packaging approvals too, since a client’s artwork can slow reorders.

Key takeaways

• List suppliers and mark custom items that cannot easily be sourced elsewhere.
• Check stock levels, storage and any past shortages that delayed shipments.
• Ask how price changes pass through to clients and who the backup supplier is.