About

Numerous aspects of packaging can lead to a surge in costs. From inefficient manufacturing processes to the use of too many unnecessary packaging materials to suffering damages during transit, there are a lot of factors that tend to increase packaging costs.

If you want to reduce packaging costs, you have to look at your entire program and identify areas for sustainable improvement. In this article, we will discuss some tips to help you reduce packaging costs.

Optimizing packaging process

The process of receiving, storing, and maintaining the correct levels of packaging materials is of the most crucial aspects of packaging costs. Unfortunately, not many brands and companies pay much attention to it. If you have excess inventory at your warehouse, it is essentially taking up time and resources.

The more time your packaging inventory sits on your warehouse shelves, the longer it has to become damaged. It may also become out of date as your branding priorities change. It can also get lost amidst other supplies in your warehouse. On top of that, a surge in incoming orders will require you to get more supplies. If you look at the big picture, you will understand the possibility of a disastrous outcome due to an overall lack of optimization of your packaging resources.

So, how can you save money in such a scenario? First off, you will have to find ways to minimize the amount of space occupied by packaging inventory in your warehouse. That will help you keep track of any shifts in demands. One of the most appropriate solutions in this regard is to outsource your packaging operations to a professional packaging vendor. Vendor-managed inventory solutions aim at eliminating every deficiency that can result in rising costs and product damages.

Using space-efficient packaging

It is a no-brainer that shipping is cheaper for lighter and smaller boxes. The thing is, corrugated material is highly customizable as it provides appropriate space for every product size. It is also well-established as one of the most lightweight packaging materials on the planet.

The transportation industry has been using dimensional weight as a pricing factor for the shipping of packages since 2015. This factor helps find the billable weight of packages measuring more than a cubic foot. The formula used for the calculation of dimensional weight is L x W x H.

This change affected the way large but lightweight cartons are priced. Since most consumers show their disliking towards over-packing, the concept of dimensional weight proved was welcomed by a majority of consumers and brands. At the same time, it is challenging for many companies to work on this requirement because using space-efficient packaging is not an easy process. You have to make sure that your products remain undamaged with the least amount of packaging material.

Avoiding damages

A damaged product means a loss to the company in every aspect of the supply chain. Your customer will return the product, and you will have to pay for that return shipping. It also affects consumer loyalty negatively.

You have to use the right packaging materials for your products to ensure their safe delivery to consumers. You can categorize packaging materials at your facility for all types of products you pack for shipping.

If you have any concerns about product packaging and shipping, be sure to discuss them with your packaging vendor to get the best suggestion or recommendation.