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Controlling packaging costs when raw material prices are increasing

packaging costs

Due to several factors, raw material prices are increasing globally (you can see why by clicking here). Ultimately, this means the unit cost of many products are going up, including packaging. Whilst it might seem like your costs have to go up, you can attempt to mitigate this.

Up to 90% of your packaging costs could be hiding behind the unit price you pay

When you look at your packaging costs, the first thing you’ll see be the unit price you pay for your boxes or your tape. And whilst on paper, that looks like the total cost to your company, most of your packaging costs could be hidden. But where?

In addition to your packaging materials, we believe that the true cost of your packaging is hidden in six key areas:

  • Storage
  • Transport
  • Damages & returns
  • Productivity
  • Administration
  • Customer Experience

The right packaging can have a significant impact on your costs!

Take damages and returns for example, they can be a big expense. The chances are, if you’re experiencing a high rate of damages, your packaging may not be fit for purpose.

We had a customer who was experiencing damage to a least 10% of their shipments when they were using just basic bubble wrap and a box to deliver high value framed sporting memorabilia. In reverse logistics alone this was costing a minimum of £25,000 each year on top of replacement goods. Not to mention the cost to their reputation when you consider the customer experience.

By introducing a new packaging design, we were able to help them reduce damages to <1% and increase pack times. This saved them £50,000 over a two year period. Click here to read the full case study.

Reviewing your complete packaging supply chain can unlock significant savings

So, if you’re looking to control costs in the face of price increases, reviewing the packaging you’re using and how you’re using it is key.

During a packaging review, we get to know your business inside and out. This includes ensuring were up to speed with your packaging objectives, your people, your product and how you need to pack them. Plus, we’ll do everything we can to keep sustainability in mind and help you drive down your impact on the environment, as well as your costs. Click here to learn more.

Help controlling your costs from our packaging experts

Our team of packaging experts are ready to help you drive down costs, simply email contact@networkpack.co.uk to request a packaging review today.