Five fail-safe ways to minimize your packaging related costs
Most companies tend to focus on their products and product designs to reduce their costs and completely overlook their packaging cost. Read on to know more about cutting costs based on reducing the packaging costs without compromising on either your packaging quality or product quality.
All packages are not packed with the same quality. Reducing the packaging cost without compromising on packaging quality is the main concern of all companies that distribute products.
Here are 5 fail-safe ways to reduce your packaging related costs:
Prioritize research and development
Take out the time to properly research and test out multiple design and material options. Putting in the time and a certain amount of money right from the beginning will prevent any further problems like damaged goods, unhappy customers, altering packaging designs and sourcing new materials later. Your packaging should be designed to suit and protect the goods inside as well as surviving the journey.
Inadequate packaging will cause unnecessary costs that will be due to damaged or destroyed goods. This can be a cause of concern as packaging that offers a lot more protection than necessary will result in higher logistics cost. The way you design and package your goods directly affects the cost of shipping.
Utilizing returnable packaging when possible
A key factor that is involved in the product shipping cost is the cost of the materials that are used to ship the products. When the package is delivered and the receiver tends to discard the packaging material after unpacking his parcel, the packaging company can arrange to buy it back from them at a nominal cost. The practice of returnable packaging (when possible) reduces the amount of packaging per unit that you will have to buy. This also encourages recycling and reduces your company’s eco-footprint.
Redesign your packaging
Redesigning and upgrading your packaging for your products with the use of new technology can affect your packaging cost in a positive way. Choosing to eliminate labels and directly print on a product directly reduces the use of materials. Changing the shape of the products increases the packing density and utilizes the space better.
Redesign your packaging in a way that your employees can pack your products in the quickest and most efficient way possible so less time and money is spent on handling the products and their packaging. Packages that will be transported via rail will vary from the packages that will be transported by air freight. This reduces any space lost in shipment and increases the efficiency of the transport.
Upgrade to better equipment
Businesses tend to look to their packaging lines to reduce their costs. Increasing their efficiency by cutting down on both staff and errors to cut their costs and increase profits. Another alternative is to have a company come in and review your entire packaging process to determine how it can be improved. Investing in the latest technology can reduce costs over time as well.
It’s a good idea to go green and approach sustainable packaging as soon as possible if you have not done so already as you may have to resource or redesign your materials further on if the law is passed. The upside is that recycled material is usually cheaper than virgin material.
Reduce the amount of waste that you generate as your customers are becoming more environmentally conscious and would prefer a green approach.
Try and choose as many eco friendly alternatives that there are. Buy and use recyclable kraft paper air bags or natural fabric dunnage over rigid foam dunnage that takes more than a century to biodegrade.
New technology and products are developed everyday so keep yourself updated on what the latest developments are in your line of work and keep on trying to improve your packaging process while reducing your costs with eco-friendly materials and practices without compromising on the quality of your packaging.