The Full Cost of Packaging
Packaging costs are often misunderstood. Businesses frequently focus on unit price alone, but packaging has far-reaching effects across your entire supply chain. Inefficient packaging can drive up labor costs, increase transport charges, and waste valuable warehouse space. Cost reduction isn’t finding cheaper boxes. It’s about finding smarter, optimized packaging solutions that reduce spending and add value across your operation.
Packaging optimization is the process of reviewing and
refining your packaging to use less material while maintaining or improving
protection and performance. By rightsizing packs and removing unnecessary
components, you can lower your packaging spend without compromising quality. This could include switching to lighter
weight board grades, using integrated packaging solutions or removing
unnecessary void fill.
Benefits include:
-Lower material use, which typically results in reduced cost
per pack.
-Less storage space required in warehouses.
-Improved pack consistency, fewer errors, and faster packing.
-Reducing packing time to increase labor efficiency.
-With labor costs rising, it’s crucial to make every minute
count in your operation.
Packaging can be a hidden bottleneck. If your team is
spending too long constructing boxes or filling awkward packs, productivity
suffers. Packaging optimization can
dramatically reduce packing time. From crash-lock boxes to automated systems
and on-demand packaging, streamlining your process reduces labor hours and
helps your team get more done with less effort.
Even a small reduction in packing time per item – say 30
seconds – can translate to substantial savings across thousands of units
shipped per month. It can also mitigate the need for temporary labor during
busier periods, offering another cost-saving.
How right-sized packaging can cut transport costs. Transport remains one of the biggest areas of
packaging-related expenditure. Oversized packaging means you’re paying to ship
air – whether through volumetric freight charges or underutilized truck space.
By switching to right-sized, fit-for-purpose packaging, you
can maximize vehicle and pallet space, reduce shipping weight and volume.
Optimize packaging to avoid damage and returns. Poorly
designed packaging leads to damaged goods, which results in lost revenue,
customer dissatisfaction and increased reverse logistics costs. A small investment in better packaging design
can significantly reduce your return rate, saving both time and money.
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