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How a Stock and Release Program Works for Packaging

Buying boxes in large quantities usually saves money per unit, but it also fills your warehouse. A stock and release program tries to give you the first benefit without the second. Here is how it works in plain terms.

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What a stock and release program is

It starts with a blanket purchase order, which is a single order for a larger total quantity of the same item. Instead of delivering everything at once, the supplier ships it in pieces called releases.

At Flint Packaging, the process runs like this. Flint ships the first release and manufactures the next one. It then holds that next release in inventory and ships it when you order it. The cycle repeats until the blanket order is fulfilled.

Who benefits most

Manufacturers with steady, repeat demand for the same box are the natural fit. If you use a similar quantity every month, a blanket order lets you plan once instead of reordering constantly.

It also helps buyers who are short on floor space. Cartons are bulky, and a pallet of flat boxes can take up room that a production line needs. Holding the stock at the supplier keeps your plant floor free.

What you gain

A longer production run is more efficient than many short ones, and buyers who commit to a blanket quantity can often ask for competitive pricing. A Flint client, Rob Howe of Royal Building Products, says the program has produced competitive pricing and reduced plant-floor inventory.

You also gain predictability. When boxes are already made and waiting, a release can ship without waiting for a new production slot. That helps when your own schedule changes and you need product moved sooner than planned.

What to check before you sign up

Ask how long the blanket order stays open and what happens if your demand drops. A commitment only works well when the quantity is realistic for your business.

Ask where the inventory is kept, how releases are scheduled and how much notice the supplier needs. Confirm how changes to artwork or box specs are handled mid-order, since printed boxes cannot be reprinted without cost.

Finally, find out who owns the risk if the product changes. A clear agreement up front keeps a good program from becoming a stack of boxes nobody can use.

It is also fair to ask about the exit. If your product line changes, you want to know in advance how remaining releases are handled, so the answer is written down before the first order, not argued over after the last one.

A simple example of how it plays out

Picture a manufacturer that packs the same product every week and needs a steady supply of one printed carton. Without a program, that buyer either orders small quantities often, paying for every changeover, or orders a big run and stores it.

With a blanket order, the buyer places one order for the full quantity. The first release ships. The next batch is made and parked at the supplier. When the buyer's stock runs down, one call moves the next release out the door, and the supplier makes the following batch behind it.

The buyer keeps a short list of things to watch: how many releases remain, when the next one is due and whether the artwork is still current. Everything else stays at the supplier.

Pairing it with just-in-time delivery

A release program often goes hand in hand with just-in-time delivery, where goods ship as needed rather than all at once. Together they cut overhead and free space at your facility.

If you want to see whether it fits your operation, a good supplier will review your usage patterns and forecast what you need. Flint also offers inventory management reviews, and a sales consultant can count inventory at your premises, so the program starts with real numbers rather than guesses.