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Keeping costs down is important to every producer. One of the ways you can keep costs down is often overlooked. Packaging optimization. Optimizing your packaging can easily reduce your packaging needs (saving on material costs), make your warehouse more productive, reduce waste, and better protect your goods.
Packaging consultants the specialize in packaging optimization can be deliver the solutions that you need. If you have not reviewed your packaging methods in a while it is time to do an audit and take a look at what your spending, how you can reduce costs and how you can better protect your goods with packaging optimization.
What is Packaging Optimization?
When your packaging is optimized using the best packaging methods it is a game changer for how everything from your assembly line to your logistic is managed. Optimize packaging means that you have cut the fat, you have your packaging perfected and you have a streamlined solution for all your packaging needs.
Packaging optimization has some very clear benefits. Of course, the next question is how I can get more out of my packaging. The answer is by using packaging engineering consultants. These are the experts that focus on packaging best practices, developing packaging solutions and revamping your current packaging to make it a more streamlined, functional, cost effective option.
What Are the Benefits of Packaging Optimization?
The obvious benefits of having a packaging engineer consultant design packaging for your products and optimizing your current operation is savings. Packaging costs can easily start to stack up. When most people think about packaging for their products, they think about material costs, however, material costs are only part of the cost framework for packaging.
Packaging costs include:
- Material costs
- Machinery costs
- Labor costs
- Waste costs
- Storage costs for the packaging
There is a wide range of costs that are involved with packaging. Optimizing your packaging can help to reduce some of the costs.
Savvy consumers are taking notice about how much packaging generates waste. One of the key focuses on packaging engineers in todays market is to do more with less. That means to protect products better with fewer materials that will generate less end user waste.
If your packaging has not been evaluated in the last 5 years, this is the time to speak with a packaging consulting company to get an evaluation done. Both regulatory bodies and consumers are demanding a reduction in packaging waste.
Finding a way to reduce your packaging without sacrificing protection for your products is where the packaging engineer comes in. Through optimization they can nicely reduce the number of materials that you are using in your packaging.
Every industry has a responsibility to the planet to ensure that they are doing what they can to reduce waste. Many of your competitors are choosing recyclable packaging as an option. Packaging optimization for your organization can mean moving toward a more earth friendly packaging option to help bolster the corporate culture and public perception.
The good news is that packaging optimization based on using primarily recyclable materials can still be a huge cost savings to the enterprise. Of course, it can also give your corporate reputation a huge boost. The idea that more packaging equates more protection for your products is really an antiquated idea that has long ago been proven an ineffective approach.
Less Can Be More
Thanks to advances in technology and the commitment of the professionals that work as packaging engineers, less packaging today can provide better protection than the more packaging approach of yesterday.
With the right packaging engineering consultants on your side you can:
- Clear out the storage space used for old ineffective packaging.
- Reduce the amount of packaging that is wasted.
- Reduce how much packaging you need to buy.
Of course, there is also labor savings as well and it could even result in the use of less carbon omitting machinery. You never really know what you can save and how much easier it can make your business until you have an experienced packaging engineer develop a packaging optimization program for you.
Many of the best-known brand name in the world have redesigned their packaging to meet both consumer demand and regulatory requirements. Ikea is the perfect example of how a company can save millions of dollars through packaging optimization.
The Wall Street Journal published an article that you can read here that describes how Ikea really benefited from optimizing their packaging.
Here are some takeaways from the article:
- 133 fewer truckloads per year
- 66,500 miles of transit eliminated
- Decreased transit costs by $133,000
- 9,500 fewer gallons of diesel fuel consumed per year
- Over $175,000 in reduction of material costs
- 146 tons of corrugate and paperboard material eliminated (Wall Street Journal)
While your business may not have the type of revenue that Ikea is working with you can still realize similar benefits on a smaller scale. The fact is sometimes the simplest changes in your packaging can come with some great big results.
The packaging industry is a dynamic industry that constantly evolves. They evolve in the materials that are used and how they are used to protect goods around the globe during transport and storage. The packaging materials that are available today compared to what was available a decade is stronger, more durable, lighter weight and in some cases less expensive.
With the advent of new technologies and new material options packaging engineers are a in a position to create designs that were never even thought of ten years ago. Every manufacturer should take advantage of the options that are available today.
Modern solutions can cut costs across the board without having to sacrifice safety. More form fitting packaging, less air being shipped, more effective packaging, all spells savings for your business.
Shipping andStorage Considerations
Packaging optimization in the warehouse can increase productivity in the warehouse, save space in the warehouse and increase safety in the warehouse, but that is not the only time packaging optimization benefits the business.
Shipping rates can be reduced with packaging optimization. Are you paying to ship air? If you are like many manufactures, you are. You are being a big price for half empty boxes because of over bulky packaging.
As quoted in the Wall Street Journal “IKEA CEO Peter Agnefjäll’s mantra is simple: “We hate air”. It is a very simply but intuitive mantra. Paying to ship air because your packaging is not optimized is simply self-defeating.
The right packaging optimization can mean for many businesses a drastic reduction in transportation charges. Fitted packaging, reducing bulk, leaving no space for air, means lighter loads that can fit more product at one time and overall it means savings, with a capital S.
Case study after case study has shown that packaging optimization is an easy way to reduce cost and realize a tremendous ROI.
Consider the following:
- GM has saved roughly 11.5 million dollars by optimizing their packaging throughout their supply chain.
- Amazon has made their fortune through supply chain packaging optimization. The revenue is in the billions and it all comes down to an efficient supply chain that optimizes the packaging.
- Loreal the cosmetic giant began using packaging optimization across their product lines and reported a net 34 million dollars savings over 5 years.
Again, you do not have to be a corporate giant to take advantage of packaging optimization and the savings that goes hand and hand with it.
The real question you should be asking yourself is why not do things a better way if that way is possible? Packaging optimization is a very simple solution for cutting the fact and streamlining processes. It is good for the planet; it is beneficial to your business and it helps to bolster your reputation with the public and other businesses.
A lot of business owners make the mistake of thinking that if something is not broken than it should not be fixed but just because you have been doing something for a long time it does not mean it is the best way to do it.
Let a packaging professional audit your packaging and see if they have a better way to do things that can help you to save money without sacrificing any of the protection for your products. It may be one of the best moves in a long time that you make for your business.
Change is a good thing especially when that change delivers so many benefits. There is no reason not to learn more about packaging optimization from a packaging professional that can help you put the old way behind you and deliver a better way for your business to do things.
Get an audit and take a closer look at exactly how much packaging is costing your business. You may be very surprised to learn that simple changes can result is very large savings for your business.