5 Packaging Cost Reduction Ideas for Almost Any Business

packaging cost reduction ideas

Regardless of the state of the economy, businesses always benefit from reducing operating costs without compromising on the value they provide for their customers. While there are a number of strategies that are effective for this, one overlooked area of potential savings can be found in your packaging solution. In fact, overpaying for packaging and shipping is a problem that many businesses face. Whether this is due to poorly negotiated contracts or packaging that hasn’t been tailored to your products, there are, fortunately, a number of strategies that you can put in place to make sure you’re paying for everything you need, and nothing that you don’t. With that in mind, here are five packaging cost reduction ideas that almost any business can use.

#1: Choose Right-Size Packaging

One of the best packaging cost reduction ideas that simultaneously improves your shipping operations is right-size packaging. Right-size packaging refers to containers that have been designed to fit your product without excess material or too much internal space. By reducing the space inside your packaging and the material used, you can lower shipping costs and the cost of the packaging itself.

Right-size packaging also provides better protection for your products and minimizes damage during transportation. This, in turn, helps your business save money that could have been spent issuing refunds or sending replacement products.

#2: Packaging Cost Reduction Ideas: Material Selection

The second packaging cost reduction idea is to assess the material you’re using. In the world of corrugated, material can come in a variety of board grades and flute sizes. These board grades and flute sizes dictate the strength and durability of your boxes, but many businesses invest in strength when it’s not needed (or don’t invest when it is). You should opt for the right corrugated material based on your product’s weight and fragility to ensure you’re not over-paying for unnecessary packaging strength.

#3: Standardize Where Possible

While customized packaging is one of the most effective ways to reduce costs, there is also value in standardizing your packaging where possible. Packaging sizes and designs that are standardized to fit your specific products can streamline production processes and reduce related energy costs.  Standard packaging also contributes to optimized storage and spacing in shipping containers so you can cut costs related to fuel consumption.

#4: Packaging Cost Reduction Ideas: Shore Up Your Supply Chain

Next in our list involves seeking out a packaging partner that can help you optimize your supply chain. For instance, a service like JIT-shipping can help you significantly reduce your packaging-related costs by:

  • Providing you with the packaging you need when you need it
  • Reducing or eliminating the need for storage space in your own facilities
  • And minimizing waste due to damaged or aged packaging

Similarly, vendor managed inventory (VMI) programs can support you in taking your supply chain one step further. With a packaging partner that provides VMI services, you can gain the benefits of inventory tracking, demand forecasting, and proactive scaling of production to meet anticipated needs to ensure you’re not investing in too much or too little packaging.

#5: Adopt a Continuous Improvement Mindset

Finally, one of the best packaging cost reduction ideas is to ensure your business embodies a continuous improvement mindset. Regularly reviewing and refining your packaging solutions helps ensure that every area of your business is on track for healthy and sustainable growth. A packaging audit is particularly helpful if you want to identify areas for improvement, such as your production lines, the measures you have in place for reducing waste, and strategies for enhancing efficiency.

You can take advantage of a free packaging audit from Axis Corrugated by getting in touch with us today.

Reduce Your Packaging Costs With Solutions from Axis Corrugated Container

Our mission at Axis Corrugated Container is to provide you with the packaging solutions that work best for your business. We don’t take a cookie cutter approach. Instead, we collaborate closely with each of our clients to ensure they are getting what they need in order to keep operations running smoothly. Along with our free packaging audit, we also offer a wide range of services and solutions including:

Located in the Research Triangle, we’re strategically positioned to offer packaging solutions for businesses in North Carolina and the surrounding states.

If you’re ready to partner with a packaging supplier that puts your needs ahead of everything else, reach out to us today to get started with a free quote.