reducing packaging costs

7 Effective Ways to Reduce Packaging Costs

If you aren’t already optimising to reduce them properly, packaging costs can be a real thorn in the side of any ambitious supply chain manager. Cost-effective packaging materials are, of course, one avenue to explore, but there’s far more to it than just this.

In order to reduce packaging costs, you have to think about every aspect of your operation, from training your staff and having the right equipment available to redesigning your packaging and removing what’s unneeded.

At Smart Directions, we understand how vital it is to reduce packaging costs and unwanted overheads. To learn more about how our experienced team can help your business or for expert advice, please contact us today.

Make sure your staff are properly trained

Probably one of the most overlooked areas when businesses look to reduce packaging costs is staff training. Your fulfilment department needs to have a process to follow and the right tools at their disposal. Make sure that you clearly outline which products are sent in which boxes, the amount of void filler to use, and so on. Don’t simply say “pack that up, please”, without first having put everything in place for your employees to do the job properly.

Don’t wait for problems to arise

You may be reading this article and think you’ve already solved your issue in reducing packaging costs. While that may be the case now, there’s no guarantee things won’t be different down the line. That’s why being proactive is so essential if you’re really committed to keeping your packaging costs as low as possible. Make sure you schedule an audit every quarter to ensure your fulfilment department is running optimally and as your existing processes state. Staying ahead of any potential trouble will help to mitigate against problems that could cause your costs to shoot up unexpectedly. 

Look at your whole process

For many businesses, the way to reduce packaging costs is to simply focus on the cardboard, so to speak. Yes, that’s a good place to start, but don’t stop there – make sure you are examining your entire supply chain. Carry out a detailed examination of your pallets, warehousing, printing, and packaging expenses. Additionally, look at your returns policy and how you can lower costs there too. If you want to reduce your warehousing costs today, reach out to our experienced team to learn how we can help.

Cut down on the unnecessary extras

Marketing ambitions can often add up to unnecessary costs if you add flyers, business cards, or branded packaging to your budget. Collect data and speak to your customers to learn whether this is really worth the investment. But, this applies to how you package your products too – if it’s possible to ship multiple products in one package, do it. If this may result in a slight delay to the order, ask your customer first to see if they would be happy to accept this.

Purchase custom-sized packaging

Wasted space and excessive weight can be huge factors in whether you achieve your goal for cost-effective packaging or not. Yes, standard-sized boxes may be convenient, but that doesn’t mean they are the right choice for a well-established business. Smaller, appropriately-sized boxes mean you’ll have more space in vehicles, pallets, and warehouses. Having less void space within your packaging means you’ll have to spend less on filler for the boxes and will be able to please customers with concerns about sustainability.

Think about weight

While we’ve already touched on lowering weight by reducing your void space, there’s more you can do with cost-effective packaging. Depending on how your supplier ships their products to your business, it may be possible to use mailing bags or other alternatives to heavy-duty cardboard packaging. After all, there’s no reason to add an additional cardboard box to your costs if your supplier can ship them in white label packaging to you. 

Look into packaging that’s multi-functional

Look into whether it’s possible to use one type of packaging or box for your entire product portfolio. Multi-functional packaging can significantly reduce your overheads if you put some thought and planning into it. If in doubt, contact a reputable packaging manufacturer and see if their team can design you something that will help you do more while spending less. While this solution probably won’t work across your entire range, it may work with some products, which is better than none at all. 

Are you trying to work out ways to reduce packaging costs and optimise your logistics? To learn how the highly experienced team at Smart Directions can help you today, please contact us now.

Leave a Reply

Your email address will not be published.