Packaging is frequently overlooked as a general commodity. If you buy it for your company, there’s a good chance you source it from suppliers chosen on price. However, you might find that packaging could be the key to unlocking savings throughout your business.
The right packaging can have a big impact. When your packaging is optimised for your operation, it will reduce your costs. It can also help you meet your sustainability goals. So, where do you start?
Unlock costs and release space by reviewing your storage
Packaging can often be a comparatively low value product within your operation. Then why does it take up so much storage space? If you consider the rent and rates to store your packing materials, you have to ask yourself: is this a good use of resources?
Storage costs could be a particular issue for your business if:
- Your business has experienced significant growth
- You have growth forecast
- You’re paying for additional storage or production space
- You need to reduce your business premises
If you’re also purchasing direct from a manufacturer, you may be subject to large minimum order quantities (MOQs) to secure the best unit price. Whilst this seems like a good deal at face value, buying large quantities may be impacting your cash flow where you’re paying four 3 or 6 months stock up front. The knock on effect of this means you’ll need more storage and stock could perish more easily if you overorder.
You could consider working with a packaging distributor instead, which will give you access to smaller MOQs and offer you stock holding to cut your overheads.
Examine transport to reduce shipping costs & minimise your impact on the environment
No matter how you’re transporting your goods, simple tweaks to your packaging materials can help you save money during shipping. Reducing your shipment weight with lighter packaging or adjusting dimensions to increase pallet loads will all help you make savings.
The knock-on effect of lighter, more ergonomic packaging is that you may need less vehicles to transport goods. You’ll use less fuel and create fewer emissions – benefitting your bottom line AND the environment.
Don’t let damages & returns cause you unnecessary expense
Damages will create expense beyond the breakage itself, including impacting your customer experience, increasing handling time and the cost of reverse logistics. It can all add up! If your products are often damaged en route to customers, your packaging could be the culprit.
The right packaging has the power to reduce your damages and help eliminate this cost.
Do more without additional labour by optimising productivity
Bottlenecks in your packing process or cumbersome materials can slow down your team and the increase time it takes to get your product out the door. Packaging that’s quick and easy to use teamed with an ergonomic packing area will help your business become more productive. Increasing productivity will help you cope with spikes in demand and minimise the need for additional labour, and the expense that goes with it.
If you would like to find out more about how packaging can unlock savings, email firstname.lastname@example.org to book a free consultation.