A good packaging solution depends on responding to a correct combination of efficiency, quality and, of course, control of costs. Finding the balance between these factors is not always easy and, often, the focus is reduced only in opting for the cheapest packaging. But, if what worries us is the cost, there are more options, here are some tips from Derrick Welch’s books that can help you reduce your invoice of packaging and business cost control:
Save the incoming boxes to use in conjunction with your outgoing shipments
At an average cost of .50 to $1.50 per box or more, even reusing 100 boxes a week will save you $50 to $150 or more a week. Over the course of a year, this will save you $2,600 to $7,800 or more a year. The more boxes you can reuse, the more you will save. It should be a very simple matter for a larger company to save $25,000 to $100,000 or more simply in this one area. Don’t even think that you can’t do this. You can and you should.
Reuse Your Packing Materials to Reduce Business Expenses
Many of the products you receive are shipped in packaging materials that you can and should reuse. From peanuts to bubble packs, from cardboard to packing paper, these materials can be used by your company for a variety of outgoing shipments. You should easily be able to Reduce Business Expenses in your packing material costs by 50% or more. Depending on what you ship and receive, you may be able to eliminate these costs entirely. This is another strategy that is both economically smart and environmentally sensitive.
Use quality packaging
This may seem a contradiction if we want to save, and then lower the quality of the materials we use, right? However, this is a terrible choice. Choosing a poor quality packaging or packaging that is not suitable for the product that is to be shipped or stored makes no sense. But there are also other costs that are not visible at first, and that in the long term can affect the image your company transmits and its reputation. In your packaging purchasing decisions, always look for the best combination of price and quality. Giving only weight to the price can cause you more long-term costs.
Optimize the number of packaging formats
It is tempting to fill our warehouse with lots of boxes and different fillings for each product (depending on the business this may be essential), but it can significantly affect your packaging invoice and introduce complexity in the shipping process and storage. If you use a reduced number of packaging formats for all your products, or that can be adapted to your size, such as telescopic or height-adjustable boxes, it will allow you to reduce business expenses by having better prices for volume and, in addition, simplify your stock of storage.
Optimizing the size and weight of your shipments can mean a significant saving in your transportation rate and lead to a Cost Reduction Strategy. For example, be sure to use only the necessary filler to protect your product without adding an additional cost.
Entrust your packaging purchases to an expert supplier
A comprehensive packaging provider can mean significant savings for better prices, but also for a more global understanding of your needs. Demand your supplier a quality service that is adapted to business needs such as fast delivery, availability of stock, payment facilities.
The use of certain packages such as boxes with automatic bottom can help you increase productivity and gain time and efficiency in the preparation of your orders. Also, machines and filling systems are a great option to automate filling processes and reduce business control costs. It is important that you take advice from packaging specialists, study your case, and offer alternatives to improve your productivity.
Hope, you’ve found these tips useful. Apart, Derrick has provided the tools and tips in his books, which will not only reduce business expenses but also help in reducing packaging costs.