4 extra Factors that Determine your True Packaging Costs
on November 10, 2017
Materials may seem like the most significant item on your packaging budget, but it really is only a hefty piece of a much bigger puzzle. Your true packaging costs hinge on numerous other factors. If you’re interested in saving money in this area, you want to consider 4 more things directly impacted by packaging materials.
- Labor and handling. If you’re saving money on materials, ask yourself if that costs more in labor. Your staff must assemble the boxes, insert/protect the products, and load them onto pallets. Cheaper materials can easily fall apart during both the assembly and loading/transport process. A lot of designs meant to create space can also be difficult to assemble quickly or reliably. At the end of the day, difficulties in handling mean you’re getting less product out the door.
- Protection. Clearly the primary purpose of a packaging solution is to protect your product. How efficiently is it accomplishing that? Are you wasting any materials with unnecessary filler? Could you lower your level of stock loss? Remember: damaged products mean you eat the cost of shipping replacement products and take a hit on customer service and satisfaction.
- Waste. Unnecessary filler is just one of several dimes circling the drain. Poorly sized packaging wastes space in your storage and the carrier’s truck. You’re wasting materials as a whole if you work with vendors who’d be willing to work with you on returnable cartons. Of course, for all the space and materials you waste, you’re also increasing your carbon footprint, which translates to both ecological consequences and increases in costs of transportation, etc.
- Transportation. Speaking of transportation costs, these are directly related to the packaging itself. As mentioned under waste, you may be able to optimize your box size to get more products per pallet or truckload. This is also where product damage is most likely to occur, meaning you not only have to deal with the costs of mishandling, but also fight with insurance to recover what you can. Other shipping costs show up when you’re not compliant with certain regulations, like international shipping laws including ISPM.
Depending on your operation, storage and administrative costs may be relevant if you’re evaluating your process on your own. Some packaging companies offer free assessments so you know what you’re getting into before you commit to a new solution.
Packnet is one of the most trusted packaging companies that offers this. These experts consider all hidden costs along with your goals and limitations during a consultation. They aim to provide the most effective, cost-efficient solution whether its for a standard or custom need. Packnet also stays current on all global shipping regulations. Take advantage of their free assessment here of contact them directly: 952-944-9124