Packaging is one of the most important aspects of a company’s entire supply chain. It has a direct impact on the customer experience, but also on the cost of transport and storage.
To save money, the company must develop a whole strategy for optimizing packaging. This includes, among other things, reducing voids, reducing volumes, and adapting packaging to the products to be transported, without neglecting the ecological side of the materials to be used.
Fully optimized packaging is an association between 3 criteria, where all the company’s poles must be involved:
- On the production side: packaging must be secure, easy, and fast
- On the customer service and marketing side: the customer experience must be constantly improved
- On the logistics and transport side: the volume and weight of packaging must be reduced as much as possible.
Here are 6 tips for saving money by optimizing your packaging.
1 – Measure the percentage of voids in the current packaging
The void may be intangible, but it directly impacts the overall transport and supply chain budget. An audit may be necessary to take stock of current packaging processes.
A preliminary study of the existing situation allows the most frequent orders to be precisely determined, their weight, the nature of the products to be delivered, etc. This is how the company can identify which boxes contain a large percentage of space, which boxes are too large for certain products, and where there is a great need for cushioning.
This valuable information from the audit makes it possible to identify the packaging that has the greatest impact on transport costs. The objective of this study is to optimize packaging in stages, to have a rapid return on investment.
2 – Adapt packaging to the volume of the products
Before purchasing new packaging, the company must check with suppliers whether there are models that fit the volume of typical orders, determined during the audit phase. The maximum weight that a box or carton can contain is also an important selection criterion, so as not to end up with damaged packaging and a spoiled customer experience.
It is important to note that the cost of transport depends on the overall volume of the order, which can be reduced by choosing the appropriate packaging formats.
For example, for small orders, it may be more appropriate to choose padded envelopes rather than cardboard envelopes, to take up less space in the transport vehicle.
You should know that some suppliers offer custom packaging, which is certainly more expensive, but offers an interesting return on investment in the medium term.
Finally, we must not lose sight of the environmental impact of the packaging to be chosen. The golden rule of eco-design is to effectively protect the product while reducing the environmental impact of the product/packaging pair.
3. Do some testing before making new purchases.
A Test-and-Learn stage can be implemented once the changes to be made to the packaging have been chosen. The changes can initially be made on a limited number of orders, before generalizing them.
This allows you to test whether any optimizations are effective, and not to lose risks regarding the customer experience. Indeed, if the new packaging poses certain problems, it is possible to rectify the situation before embarking on large expenses. It is thus possible for the different divisions of the company to check the resistance of the packaging to transport, and the customer experience during unboxing.
4 – Make the right choice of packaging supplier
This aspect is far from trivial and can be a significant gain factor for the company. The packaging supplier must be responsive, flexible, and always able to provide the right packaging, according to the company’s needs.
It is even possible to carry out the packaging externally, at a third-party company. This investment may be heavy at the start, but in the long run, it guarantees a gain in productivity, a reduction in costs, and a release of a significant portion of human resources.
A professional specialized in packaging is able to offer the company a service adapted to its situation and its budget, and thus to rationalize the costs of this operation. On the other hand, these suppliers ensure quality packaging and support in decisions on the layout of storage spaces.
Financially, the packaging operation may even prove more interesting than if it were
5 – Develop a rigorous labeling process
Package labeling and identification are essential elements in reducing packaging costs.
Before sending the packages to their recipients, a verification of the information is mandatory, in order to avoid incorrect addresses and therefore return to the sender, with additional costs.
Furthermore, it is important to mark fragile goods on the box or carton to reduce the risk of breakage or deterioration.
A small error or oversight may require recovery of the goods, repair or replacement of the products, use of new packaging, and re-labeling and transport.
6 – Make the right choice of packaging materials and equipment
In order to increase productivity, the company is required to opt for professional and quality packaging.
For example, cardboard boxes with automatic bottoms, which fold in seconds, can save valuable time in the logistics process. Likewise, it is possible to invest in automatic box closers, filling machines, or cushioning devices.
Conversely, low-cost, low-quality packaging costs the company money, even if it saves money on purchasing. The loss of productivity has a medium-term impact on financial gains.
Another important aspect related to the quality of packaging is the customer experience, which should not be neglected under any circumstances. A quality box or carton has a positive effect on the brand image and helps to build customer loyalty.
Furthermore, by choosing the right packing options for the products to be delivered, the company is assured of reducing its transport costs. For greater efficiency, it is possible to opt for shockproof bubble wrap, kraft paper, or inflatable packing cushions.
It is even possible to recover second-hand packaging elements, which may have been demonstration or exhibition products, or equipment that has only been used once. The company can thus make very good deals by purchasing equipment from clearance sales of second-hand products , such as Ripack guns or package strapping tools.
Finally, it should be remembered that good packaging does not improve the product, but bad packaging can reduce its quality.
