... That is, when you’re choosing bulk packaging for olive oil.
If you want to save money, choose a bigger packaging size. This will reduce your costs by eliminating unnecessary packaging. To save the most, choose the largest size that still works smoothly into your current production line.
Use the chart below to compare each of the packaging options commonly used by manufacturers. Both the Packaging Specs and most common uses will give you a good indicator for what will work best in your production line.
As you’re starting the sourcing process for bulk olive oil, there are five primary decisions that you’ll have to make as you’re considering the product and the logistics. Let’s review:
55 gallon drums are one of the most common packaging sizes for olive oil. These drums are commonly plastic or steel (all drums from Centra Foods are currently steel).
Once you’ve used your 55 gallon steel drums, you may be wondering what to do with them.
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.
Centra Foods receives questions from hundreds of manufacturers each year on the best ways to save money on olive oil. Research and Development typically specifies a particular “spec” for the oil desired, and it is up to the operations and purchasing teams to figure out how they can save money on other pricing factors involved.
We have found that some of the biggest factors that can increase the price of olive oil are actually logistics related.
Centra Foods receives questions from hundreds of manufacturers each year about the best ways to save money on olive oil. There are many components that can affect the total price of your olive oil, including grades, packaging, freight, distance of the FOB point and experience of the supplier.
Click here to go to Part 1 of the series: Choosing the Right Olive Oil Grade
Once you’ve settled upon a grade of oil, the next step is to look at the packaging. It is one of the most important, and easiest components to consider if you want to save money.
Centra Foods receives questions from hundreds of manufacturers each year on the best ways to save money on olive oil. There are many components that can affect the total price of your olive oil, including grades, packaging, freight, distance of the FOB point and experience of the supplier.
Our first recommendation is to consider the grade of olive oil that will be best for you. To be able to do that, you’ll need to look at your own manufacturing requirements.
If you’re a U.S. manufacturer, you’ve probably received your bulk olive oil in one of two ways:
from a U.S.-based company who ships oil to you by the pallet, or
from an overseas supplier who ships oil to you in a full container
There are pros and cons to each of these systems.
Most manufacturers buy their bulk olive oil in totes or drums that deliver a few pallets at a time. For large manufacturers that use a lot of volume, it is worthwhile to consider a larger bulk size that can save you even more money.
You can significantly cut down on the cost of your olive oil by receiving it in a flexitank or tanker. This means that a truck would deliver to your facility with about 6,000 gallons of olive oil. This oil is pumped into a “silo” or “storage tank”, located at your facility. The question is, how do you know when it’s right to make the switch from totes to flexitanks/tankers?
