Ways to Reduce Packaging Costs
Reducing packaging costs is a top priority for many businesses. Whether you’re trying to keep your prices competitive or adjusting to the rising costs of materials, there are multiple ways to save on your packaging operations. When looking at how you can reduce your packaging costs, you have to find the right balance between quality and cost. Once you find that balance, you can be assured that your packaging strategy is efficient and economical. To help you find creative solutions, here are a few simple ways to reduce packaging costs.
Redesign Your Packaging
Have you been using the same materials in the same format for a long as you can remember? While it may have been the best option in the past, you’re probably missing out on new innovations that can do the job all the same, except for a lower cost. As the packaging industry continues to evolve, so will the materials and equipment we have access to for our operations.
You might be surprised at how much you can save by redesigning your packaging. From switching shipping containers to swapping void fill products, there are easy ways to cut costs during the design process.
Minimize Packaging Time
We all know that time equals money. The more time you waste, the more money you waste. So, when it comes to evaluating your packaging system, finding ways to save time during production is one of the easiest ways to reduce your costs.
You can save time on the packaging line by designing workstations that enhance employee productivity. This involves giving workers an area that is fit for the application and includes all the tools and supplies they need with convenient access. Every time someone has to cross the warehouse to grab supplies or bug their coworker to share a tool, your time is being wasted.
Another way to enhance worker productivity is to find ways to eliminate extra steps, such as cutting tape or labels to fit the application. You can do so by working with a converting partner who can make the desired shape or length of material you need.
If you think we’d talk about maximizing time without mentioning automation, you’d better think again. Automation has proven to be one of the best ways to optimize your packaging solutions. Although the term automation is usually associated with hefty costs, there are entry-level solutions that are quite affordable. By speeding up your packaging system with automation, you can pack and deliver products faster, which leads to increasing profits and fewer backorders.
Aim for Cheaper Shipping Prices
If you want to distribute your products across the country, you’ll have to consider the shipping costs. Shipping costs won’t ever go away, but you can take them into consideration when evaluating your packaging strategy.
Shipping costs are determined by a number of factors, including the package size, package weight, origin destination, and intended destination. Reducing the weight or the size of your packaging can drastically affect your shipping costs. For example, using dunnage air bags to pack a freight will produce a lighter load than securing products with other methods. Changing your primary packaging can also help you unitize items more efficiently, which helps you ship more efficiency.
Prevent Damage in Transit
Companies lose thousands of dollars to product damage every year, despite there being plenty of options to prevent it. Taking the necessary precautions before your products leave the warehouse will ensure every item arrives in pristine condition. If something isn’t working, like stretch wrap tearing or pallets falling over, you need to reevaluate the products and methods you’re using to prepare items for transit.
This method of reducing packaging costs might actually start with more spending, but if you’re wasting a lot of money throughout the year by replacing broken products, it will eventually lead to big savings. The cost to add extra protection will ultimately be less than the cost of sending out new products.
Optimize Warehouse Space
If you’re running out of room on the floor, now is the perfect time to think of ways to optimize your space before committing to another rental budget. Space in your warehouse is precious because it determines how many procedures can run smoothly in your packaging system. While there are some instances where purchasing additional space might be the only option, there are also ways to free up space for important operations.
One of the biggest trends in saving warehouse space right now is switching from traditional bubble wrap, which is stored in large bundles, to air-pillow machines that involve a compact film storage system. You can also enhance workstations to make them more space-saving. There are plenty of opportunities to get creative with your warehouse space, so start figuring out what you can do to give yourself more room to breathe.
There are multiple ways to reduce packaging costs and increase your bottom line. From changing the design of your packaging to investing in new packaging equipment, your options are endless. In the end, it’s all about finding the perfect balance between quality and cost when it comes to your packaging solutions.