How To Reduce Packaging Costs
How To Reduce Packaging Costs
Inefficient packaging operations could be costing you more than you think. But you can reduce your packaging costs by auditing your packaging process to uncover opportunities to improve efficiency. Consider the materials you use and whether there are newer, and more innovative packaging products available. You could also benefit from automating your packaging process. In this guide, we’ll take you through how to save money on your packaging.
If you’re not sure where to begin, we can help with a free packaging audit. We’ll analyse your packaging operations from start to finish. And we’ll show you exactly how much money you could save by reducing your packaging costs.
Packaging Costs
There are several key packaging costs every business needs to be thinking about:
1. Packaging Materials
This consists of everything that makes up your product packaging. From cardboard boxes and mailing bags, to void fill and packing tape.
2. Shipping
This includes both the delivery of your packaging products to you, and the delivery of your product to your customers.
3. Storage
If you’re storing large quantities of packaging, there’s going to be a cost to that. We offer a stock management solution, holding your major lines for you.
4. Inserts
All of your additional marketing materials that you might include when you ship your goods.
5. Labour
The staff you employ to package your goods. Automating your packaging processes could free up your staff to get more done and save on packaging waste.
Now, let’s take a look at some of the ways you can reduce those packaging costs.
Reducing Shipping Costs for Small Businesses
At Springpack, we’re always looking for ways to help our customers with a more efficient packaging process. Recently, we looked at how we can help to reduce shipping costs for small businesses local to Springpack’s head office in Worcester.
Customers within a 60-mile radius can now benefit from free delivery for orders over £200. This new delivery offer also helps us to reduce our CO2 emissions. With customers consolidating smaller orders into larger orders, we’ll be driving less miles on a day-to-day basis. So if you’re looking to reduce shipping costs and improve your sustainability credentials, get in touch today about your packaging requirements.
Packaging Material Costs
If you don’t keep on top of your packaging materials, you could end up using more than you need to. Equally, you could end up shipping your products in inefficient packaging. Ask yourself some simple questions:
Are your cardboard boxes the right size?
How much void fill do you use?
Is there an eco-friendly packaging alternative?
Is my packaging easily returnable?
Does my packaging suffer from any damage in transit?
Could I use pallets more efficiently?
By asking yourself these questions, you will be able to determine what changes you need to make to the packaging materials you use. For example, IKEA obsess over their packaging materials. By reducing their cardboard box sizes and void fill requirements, they saved millions. Even going so far as to design their furniture with shipping in mind.
Standardise Your Packaging
One of the best ways to reduce packaging costs is to standardise your packaging. So once you’ve audited all of your packaging materials, consider whether you can streamline your operation. If you sell similarly sized products, can you use a single box size, rather than several different ones? Not only does this have an obvious impact on the packaging you need to buy, but also streamlines your picking, packing, and shipping process.
Reduce Your Plastic Packaging
As of April 2022, the UK has introduced a plastic packaging tax. This means that plastic packaging which contains less than 30% of recycled plastic will face a tax charge of £200 per tonne. And it is applicable to each component of your packaging.
Void fill is one of the most common areas where plastic is used. You can avoid paying this plastic packaging tax by switching to an eco-friendly void fill. For example, paper twist fill is a great alternative to plastic void fills. It is designed to absorb shocks and protect your goods, while also being incredibly lightweight.
Pallet wrap is another example that will be impacted by the packaging tax. That’s why we launched a new range of eco-friendly pallet wrap that is made from at least 30% recycled materials.
Packaging Storage Costs
If you have a lot of different packaging requirements, it will be important to reduce your stock management costs. We can help you by holding your packaging in our 53,000 square foot warehouse.
Packaging Automation Can Reduce Packaging Costs
A lot of businesses can benefit from automating some of the packaging process. For example, pallet wrapping machines can make your packaging operation a lot more efficient. Not only will they speed up the packaging process, but they’ll also minimise wastage of pallet wrap.
But it’s not just big machines that can help you to automate your packaging process. If you use a lot of gummed paper tape, an electronic paper tape dispenser might be the right solution. The dispenser will save you time, reduce wastage and save you money over the long term.
Speak to Springpack Today to Discuss How to Reduce Your Packaging Costs
In truth, we’ve only scratched the surface of all the different ways you can save money on your packaging costs. Every business will have its own unique challenges. That’s why we recommend a free packaging audit to help you discover how to reduce your packaging costs.
If you’d like further information on reducing your packaging costs, get in touch with the Packaging Experts by
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