Packaging can be an overlooked commodity, often purchased from a list of products that have been used in-house for a long time, with suppliers chosen on price.

However, packaging can be the key to unlocking savings throughout your operation. The right packaging can have a terrific impact on costs and throughput.

If you are considering changes within your business this year, it will be worth taking a fresh look at your packaging to understand how it shapes your operational processes.

To start off your journey, here are four areas that packaging can deliver cost savings:

The impact of packaging on storage

Packaging can be a comparatively low value product within your operation, so why is it taking up so much space in storage? Is paying rent and rates to store cardboard boxes a good use of resources? This is a particularly pertinent question to ask if:
• The business has experienced significant growth
• You have growth forecast
• You are paying for additional storage or production space
• You need to reduce your business premises

If you are purchasing packaging direct from a manufacturer, you may be purchasing large MOQs to get the best price. We all welcome “best price” but there are other financial considerations. Large MOQs can:
• Tie up storage space, often for months at a time
• Impact cashflow – paying for 3 or 6 months of stock in one hit
• Perish in storage – or risk being written off due to over ordering
Consider purchasing packaging from a distributor, they can reduce your MOQs and deliver stock as needed – freeing up space and cashflow.

The impact of packaging on transportation

Whether you are shipping orders on your own vehicles or using a courier, sometimes a tweak in the packaging can reduce overall shipment weight and increase how many products you can fit on a pallet or, in a courier vehicle.
Using packaging to optimise product cubage can increase payload and potentially reduce the number of vehicles on the road. It reduces fuel, labour and courier costs, reduces your carbon footprint and increases efficiency.

The impact of packaging on damages and returns

If you are experiencing damages whilst goods are on route to customers, it is time to review the packaging and packing process. Damages create expense beyond the product breakage itself. It takes company time and money to correct a damaged order, impacting customer service, RMA handling, the pick/pack team and transportation.
The right packaging has the power to reduce – or remove – those costs and free up more time for your team.

The impact of packaging on productivity

If you have a labour heavy packing process, this will be slowing down your team and impacting the time taken to get your products out of the door. With the right packaging and an ergonomic packing area, you can speed up the packing process and do more in less time. This will help you to cope with spikes in demand without additional labour costs.

If you would like to find out more about the right packaging for your business, contact Macfarlane Packaging today.

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