Centra Foods receives questions from hundreds of manufacturers each year on the best ways to save money on olive oil. We have found that some of the biggest factors that can increase olive oil’s price is actually logistics related, including packaging.
Olive Oil can come in a variety of sizes, from 1 Gallon containers to drums and totes, to 6,000 Gallon FlexiTanks. The general rule is, the bigger the pack size, the lower the cost. Therefore, you always want to opt for the largest size possible, keeping in mind the restrictions of your warehouse and production line.
To consider all options, you’ll need to work with your operations and warehouse managers to address the following questions:
Storage Capabilities
- Do you have space limitations?
- What is the maximum number of pallets that you can hold at one time?
- Do you have space to install an oil storage tank inside or outside?
- What do you do with the packaging when you’re done?
- Do you have limited or expensive space for disposal?
Efficient Production Line
- Does your production team have to manually pick up the olive oil and pour it?
- Could pumping out of drums or totes be easier than manual pouring?
- When using totes or drums, how do you move them around in your production space?
- How do you plan to get the oil out of the tote/drum?
- Would a storage tank that can tie directly into your production line be most efficient?
Once you’ve answered the questions above, a supplier can provide advice on the packaging options that are going to work best in the short term and what would be worthwhile to transition to in the future.