What Costs can You Cut from Packaging?Anna Lee
Most companies have opportunities to cut costs, especially when it comes to packaging. Clearly there is an endless range of conditions that can differ from business to business depending on what it is you sell. So no checklist for cost savings will appeal to every company. For those who ship specialized items that can incur damage, here are some potential areas to cut some of your costs.
Reusability of material – If you ship components or product between facilities, you’re probably looking to reuse your packaging. This is smart and can help your bottom line. However, if you’re using wood boxes, you may only have a few trips in them before you have to replace them. If you have the opportunity to reuse packaging numerous times, consider investing in a container made of more durable material so you can stretch your dollar and even protect your products better.
Weight inconsistencies – If you’re using various types or sizes of boxes to ship, each will have a different weight. You therefore have to spend extra time and resources to weigh each box before shipping, whereas weigh counting can spare a significant amount of your workforce’s time and efforts. Remember that efficiencies on the floor can save you more than other discounts do if those discounts create inconsistencies.
Product damage – The most obvious and significant cost associated with packaging is product damage. The time and materials you lose replacing something that is damaged is only half the cost you eat. If you’re sending to a customer (vs another facility within your own company), you can potentially lose business for life. If product damage is an issue for you, preventing it should be a top priority.
Prep time – Protecting your assets can mean significant amounts of time filling boxes or containers. If you consistently ship the same sizes and quantities, test your practices periodically to ensure they’re truly the best. Of course, consistent container sizes are necessary for universal protocol – if you don’t have a specific, repeatable process, put yourself in a position to have one. If you have one and need better speed, consider customization. Customized containers can solve multiple problems at once.
That’s what Team Industries found when they hired Packnet to engineer their packaging solution. Team Industries is a leader in drive train technology and has several facilities across Minnesota and North Carolina.
The company was experiencing all of the obstacles listed above, and now uses PermaPal Containers. They’re indestructible, so they have infinite reuses. Each container is the same size and weight, providing speed in weighing and room when storing. Packnet customized the boxes to perfectly hold and protect each component, which sped up prep time and drastically reduced the possibility of damage.