Packaging supplies, consisting primarily of 
labels, normally require more time for de- 
livery than the standard containers because 
of the many different sizes, designs, and types 
of printing employed. Labels cannot be made 
up ahead of time or stockpiled by the manu- 
facturer. 
Inventory and Storage Policies 
and Problems 
Management of inventories and efficient use 
of storage space are usually very complex 
because of the seasonal nature of the pack, 
volume and bulkiness of the goods processed, 
and the cost of maintaining excessive in- 
ventories. However, inventory and storage did 
not present major problems for the processors 
contacted in the study. 
INVENTORY POLICIES AND PRACTICES 
Processors maintained only an operating 
inventory of containers and packaging supplies 
and relied on the manufacturer to deliver 
containers, especially cans and bottles, on an 
"as needed" basis. 
Processors maintained an exceptionally low 
inventory from one year to the next. The av- 
erage beginning inventory for containers in 
1965 was $52,095, representing only 2.8 per- 
cent of the annual container purchases. Ending 
inventory was slightly less--$46,000, or 2.4 
percent of annual container purchases. Peak 
inventories generally ran from 5 to 10 percent 
of annual purchases, with an average of 7.2 
percent (table 10), 
Purchases of containers reported by proc- 
essors contacted through personal interviews 
averaged $1,888,495, higher than the average 
for all cooperatives contacted. * Purchases 
ranged from none to $20 million, with the av- 
3 Personal interviews were conducted in areas of 
intense concentration of fruit and vegetable production 
where the largest cooperatives are located, 
erage amounting to about 17 percent of the 
total value of goods sold. 
Inventories of packaging supplies repre- 
sented a higher percentage of annual purchases 
than did inventories of containers (table 10), 
Beginning and ending inventories for 1965 at 
$14,600 and $15,179, respectively, averaged 
about 20 percent. 
Peak inventories of packaging supplies av- 
eraged 63 percent of annual purchases. Pack- 
aging supplies are ordered on a lot basis and 
stored until used rather than onan ''as needed" 
basis. This difference is reflected in the per- 
centage of total purchases maintained in in- 
ventory. 
STORAGE PRACTICES AND PROBLEMS 
Storage space was not considered a major 
problem by the fruit and vegetable processors 
interviewed, but 50 percent of this group did 
consider it a limiting factor. 
Only 21 of the cooperatives reported the 
actual amount of storage space used because 
of the difficulty in making this calculation. 
Frequently, storage for empty containers is 
used in conjunction with storage for processed 
goods. As the processed goods are moved out, 
more and more space becomes available for 
container storage which is sometimes rented 
to container suppliers as off-season storage 
or used for the storage of containers under 
various warehousing allowances. 
In some instances, however, processors 
believed that warehouse space was so valuable 
that they never could afford to store empty 
containers, regardless of price advantages or 
warehouse allowances. (Information on ware= 
housing allowances available is included on 
page 17.) 
Fifty-seven percent of the reporting coop- 
eratives used less than 10,000 square feet of 
storage space, about 20 percent reported the 
use of 50,000 square feet or more, and 14 
percent indicated they used no storage space 
for empty containers and packaging supplies 
(table 11). 
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