Five Ways To Save Packaging Costs And Boost Profits
According to an old adage, “the packaging sells the goods the first time, but the contents sell the product the second time.” As a result, companies can save money on packaging without sacrificing product quality or brand recognition. The packaging process can be made more efficient and cost-effective by employing a variety of different solutions and strategies.
What does this imply, then? Shipping products in bubble wrap costs businesses a lot of money. They invest in fancy packaging to impress potential buyers and make the “unboxing” experience one remembers.
About 160 million packages are shipped annually, according to an estimate by Fast Company. Garbage and recycling are problems that the world is already facing.
Reasons for Expensive Packaging What causes higher packing prices?
However, the price of packaging materials is only one factor. There are, in fact, a number of factors that drive up the price of packing materials.
Inadequate material handling and packaging systems
The Protracted Duration of the Packing Procedure
The practice of charging based on box size rather than the actual product size
Damage-causing ineffective packaging
Models of production that aren’t very efficient
When packing fails to be optimized,
Distribution costs are prohibitive.
If your company takes a more all-encompassing approach to cut costs, it will find better ways to package its products without lowering quality.
1. Enhancing Material Handling and Packing Procedures
Increases in the volume of packaging materials you use are inevitable as your company expands. Many distinct types of packaging materials exist, each with its own subset of variants.
Plan out your warehouse’s layout. Are supplies for packing neatly stowed away? Could your packaging procedure be sped up by standardizing its layout? To enhance current procedures, try the following:
Have a look at your current stock of product packaging and see if
Figure out what kinds of things can be categorized together
Determine the packing supplies that are rarely used and put them in one pile.
Multiple packing lines will need to be consolidated into a smaller number of highly efficient ones. Your organization will save time and money by centralizing what would otherwise be a disorganized, time-consuming, and inefficient procedure for handling packaging.
By reducing the amount of warehouse space you use, you can save money on utilities like lighting and heating.
Automation can cut down on packing time, which saves money and time.
Is the quality of your packaging at risk if you drastically reduce your unit costs? One way to save money is to increase productivity by decreasing packing times, and this is a viable option.
Some of the following time-consuming packaging tasks may be taking up your employees’ time.
Making corrugated cardboard
Putting together and fastening cartons
Adding partitions or filling spaces
Securing packages with packaging tapes
Since so much is at stake, taping and sealing can take a long time compared to other stages of the packaging process. Unsealed products are more likely to get damaged or go bad.
Inefficient or antiquated sealing machinery, or a packaging line with a lot of human intervention, are common causes of lengthy sealing times.
2. Does downtime from broken machinery plague your team frequently?
Do you frequently experience tape jams or miscuts from your sealing machines, which in turn slows down your entire workflow?
It slows down your team, causes unnecessary duplication of efforts, and requires more frequent manual inspections.
However, if you don’t have any machines, you might not have to worry about them breaking down. Some of your packing procedures might be time-consuming and error-prone, but they could be easily automated.
The following are just some of the ways in which an automated packaging line will benefit your business:
Profitability rises as output rises due to automation’s acceleration of the picking and packaging process.
Lessen your impact on the environment by ditching the wasteful practice of manual sealing. With proper automation, only the required amount of materials is used.
Workers are less likely to sustain repetitive stress injuries thanks to automation, cutting down on absenteeism and legal claims related to workplace accidents.
Improve your company’s image by using machinery to produce perfectly wrapped and locked products. As a result, you can provide a more aesthetically pleasing product to your customers while simultaneously decreasing the likelihood of damage.
3. Maximize efficiency in transport and storage by downsizing box sizes
You should also consider shipping costs when attempting to cut back on packaging costs.
Customers shipping small items in bulky boxes take up valuable real estate in the carrier’s truck, which could have been used to transport goods for another customer.
The “normal weighted rate” is derived from product weight, and the “dimensional weight” is derived from product volume. This means that whichever price is higher, the customer will have to fork over cash for.
You’re throwing away a simple chance to save money on shipping by putting your small items in a big box. If you want to save money on shipping while getting the most out of your packaging, try these tips.
Ship as many items as you can in a single box by maximizing the space you use for packing.
Instead of always using the same three box sizes, it’s a good idea to figure out how big your average shipment is and then figures out what size boxes you need to get to keep your dimensional volume rate low.
Use large, padded envelopes instead of small boxes for the products that can fit into them.
Automated packaging solutions can quickly determine the best box for each product based on its size, saving you time and effort.
If you ship many products regularly, you should talk to your account manager about getting special shipping rates. Never forget that there is always room for compromise. Before negotiating with a carrier, it is important to review your shipping data to gain insight into your shipping profile.
4. Reduce the number of product returns by checking that all products are securely packaged and shipped.
Damaged goods have a negative impact on your bottom line. Manufacturing, packaging, shipping, and return shipping costs are all lost when a customer sends a damaged product back. And now you’ve probably lost a customer who won’t shop with you again and may even tell others about their bad experience through word of mouth and social media.
What Counts as Damage While in Transit?
Learning what triggers transit damage is the first step. Transport incidents involving sudden impacts or extended vibrations are common causes. Storage fatigue can also occur as a result of constant movement and handling.
Unstable loads are another potential source of trouble in transit. Products may be damaged if a transport company does not stack loads correctly or if it stacks pallets too high.
Long-term vibration is one cause that’s difficult to avoid. Heavy-duty boxes and other forms of protective stuffing should be used in these situations.
Even though it is the carrier’s fault if the load is unstable, proving it can be challenging. In order to find the one that can handle your highest volume of damaged and returned products, it is best to use multiple carriers.
5 Packaging Improvements via Redesign
It is never a good idea to reduce costs per unit at the expense of product safety. However, the cost of packaging a product can be significantly higher than anticipated due to aesthetic rather than functional considerations.
I suggest you rethink your current packaging in order to maximize storage space. And by printing the artwork and logos on the packaging itself, you can save money on otherwise necessary extras like labels.
Article post by coolocean123