It is said that “packaging sells the products.” However, in the long-run, businesses have to spend a lot of money on designs of packaging, creating eye-catchy boxes, protecting goods in bubble wraps, and filling boxes.
Unfortunately, the world is already struggling with wastage and recycling problems. However, there are some ways that a business can adopt to reduce its packaging cost, improve profits, and leave a positive image on the environment. Read the following:
#1: Identify Factors Responsible for Higher Costs
First and foremost, you need to identify all those factors that are responsible for higher packaging costs. Once you and your team have got a clear head on that, you can proceed further to decrease packaging expenses. Generally, there are a lot of factors involved in production units that contribute to high packaging costs. They include poorly designed packaging lines, low-quality storage materials, ineffective packaging/shipping boxes that allow damage, and lengthy packaging process time.
Sometimes the packaging cost is also high due to inefficient manufacturing models, high shipping costs, and failure to optimize packaging. When it comes to packaging, it is imperative on your business end to take a holistic approach and think of ways to improve packaging and reduce costs.
#2: Outsource Packaging Materials & Storage Boxes
Outsourcing is a practice in which one business hires services or products of another company to reduce its operational, production, and business costs. It is usually recommended to outsource a business activity when it is expensive and time-taking to conduct in your business. Thus, it is always best to outsource non-core business activities, such as supply-chain management, logistics, packaging, storage boxes, contact center services, data processing, etc.
Outsourcing packaging materials and storage boxes are an excellent option for your products if you’re looking to reduce packaging costs and improve business profitability. Naturally, when your business grows, it results in high sales volume & high production volume, which leads to an increase in the amount of packaging material. Hence, it is advised that you outsource shipping boxes, corrugated boxes, plastic bags, paper bags, and stuffing bags, depending on your production needs.
#3: Optimize Your Packaging
Have you ever thought about tactics to optimize your packaging? Well, if your answer is ‘no,’ then you must know. Because optimization is great to reduce packaging costs and ramp up profitability. One way to optimize packaging is by using small boxes. They are also an ideal option to cut down on shipping costs. In reality, there is no point in using large boxes to pack small products. They can even cause damage to your products. If you’re looking to optimize packaging, then follow the below-mentioned strategies:
- Prefer padded envelopes for small delicate products that don’t require large boxes.
- Maximize space by using the packaging box to its fullest.
- Use different sizes and shapes of boxes to pack different types of products.
- Diversify your packaging materials and shipment boxes, depending on the average shipment size.
#4: Cut Down on Packaging Time
When you’re thinking about viable solutions to cut down on product packaging costs, it is ideal that you consider automating your product packaging process. With automation, you can significantly ramp down the amount of packaging time. This will drastically reduce your unit costs without compromising the quality of your packaging. Besides, this will allow boosting the productivity of your workforce.
Packaging automation allows you to save valuable time of your workforce that is being spent on the tasks of packaging process like;
- Making corrugated cardboard
- Assembling cartons
- Inserting dividers
- Stuffing materials
- Taping boxes
- Securing cartons/storage boxes
Automation is a great option to speed up your packaging process, ramp down packaging costs, increase output, decrease your carbon footprint, reduce factory injuries, and improve your business’s profitability. You probably understand that ‘high warehouse performance’ leads to ‘high-profit margins.’
