Any wise manager wants to reduce packaging costs. But your business’s supply chain is changing, whether you like it or not.
Consumers expect sustainability and they are pickier than ever.
Both these changes mean reinventing the way of working, which in effect makes it more difficult to save some money in the process.
But there's one element that won't change despite all of those changes.
No matter how demanding your customers are, no matter what business model they expect, you'll still need packaging.
The consistent demand for packaging means that it’s a great place to look when you need to start saving some money in your supply chain.
In this article, you’ll see how to:
- Reduce packaging costs
- Save money in order fulfilment
- Use custom packaging to free up cash flow
And as you’ll see below, there are plenty of ways to free up some cash. But the most effective way to save your packaging budget doesn’t involve your packaging at all:
- Train your staff
You will optimize processes and goods to the point of being blue in the face.
Yet if the human aspect in your company isn't up to scratch, you won't cut down on packaging costs.
Well-trained staff are vital to an effective organization for supply chain and fulfilment.
All personnel must be thoroughly trained on all equipment that’s used in their work.
Diverse machinery processes and repeated motions need to be registered. Whether it is for workplace health or not, there should be detailed documentation of all procedures. Not only can you get new hires onboard and get them up to speed faster, but it's also the first place to look when you want these processes to be more effective. Shorter times for employees to integrate means you reduce packaging costs sooner.
- Maintain your machinery
Just like humans, if your machinery doesn't work properly, then it will cost you money. From conveyor belts to lifting equipment to a basic tape dispenser, everything needs to work in perfect order. If you fail to maintain equipment and devices, you will have to pay for both maintenance and downtime when it finally fails. With the above two points taken care of, you can be sure that any changes now made to your packaging design will reap the best rewards they can.
- Be proactive
Chances are you're reading this article because something went wrong.
You've noticed the skyrocketing of your costs, you 're getting more returns or there's a massive inefficiency.
But the best time to implement the tips you've read in this article is when there are no issues.
When there are no problems, paying attention to processes and product usage means you can see clearly how efficient it is and if there are any easy way to reduce packaging costs.
Compare this to auditing your packaging when an issue arises and you will have the added stress and pressure to find savings.
Consider scheduling a packaging audit to review your packaging supplies, procedures and methods every 6 months.
- Packaging isn’t just a box
Sometimes you think too much about the most obvious product, the box, when you are so laser-focused on saving money in packaging.
But your spending on packaging is much more than just the humble cardboard box.
Look at things such as pallets, printing methods, return policies and warehouse zoning to lower your packaging expenses.
To be sure, look at the raw materials like cardboard boxes when trying to reduce your packaging costs. But don't neglect to look at the entire process to actually fine-tune your packaging costs.
- Lower your assembly and packing time
Labor is a cost, no matter what, that you will have to burden. But reducing packing time per unit is an effective way to reduce the cost of packaging. However, many supply chain managers do have a laser-like focus on boxes when doing this. What is surprising though, is that assembling a box and filling it is often the fastest part.
Adding multiple lengths of packaging tape is not only time-consuming, but also uses another consumable product, either to seal the box or add force. This is where the extra costs often hide. Quality packaging design means less tape required, often due to a self-locking mechanism.
Products such as self-locking boxes come pre-glued and simply need to be expanded to lock in place automatically. Not only does this prevent the need for tape, but it also means that workers do not need to reach inside and assemble the box manually.
- Remove what’s not needed
Do you include flyers, marketing material or a thank you note in your client's orders?
These things are great for your marketing department, but they are causing damage to your fulfillment department and the cost of your packaging. All this is an added expense not only for material, but also for the time it takes to add it to each order. Removing these elements can help dramatically reduce packaging costs. Consider printing a thank you message inside of your product box. Automate advertising emails that will be sent to your client after they receive their order. This cuts the cost of the raw material as well as the times of fulfilment.
There are many more ways of cutting down your packaging costs. Stay tuned!
