There has been considerable volatility in the paper and packaging industry over the last 12 months and this has affected the pricing and availability of most products.
Due to several factors, raw material prices are increasing globally. Ultimately, this means the unit cost of many products are increasing, including print and packaging. Whilst it might seem like your costs have to go up, you can attempt to mitigate the current pressures.
Your costs could be hidden
When you look at your print and packaging costs, primarily you see the unit cost you are paying. And whilst on paper, that looks like the total cost to your company, most of your print and/or packaging costs could be hidden. But where?
Review your packaging supply chain to unlock savings
If your focus for savings is only materials then you're missing out on the big picture. Supply chain and transportation costs can be between five to ten times higher than what you'll spend on materials. Inbound logistics, warehousing, outbound transportation, damage and return costs, and labour costs - all impact the cost of goods sold.
The right packaging can have a consequential impact on your costs
A limited perspective limits your potential savings. If your supplier can't find ways to create savings for you they may offer a discount. But discounts pale in comparison to the long-term efficiencies available by optimising packaging to ease handling, reduce postage costs or increase environmental sustainability. There may be alternative materials or a fresh design concept that can generate savings. Selecting the correct packaging materials can make a huge difference when trying to save money.
Are you using ideal packaging material?
With various packaging materials to choose from, there can always be a better way to package your product while meeting the performance and sustainability goals you desire. Often companies find their design consists of too much packaging. An evaluation can result in lower packaging costs and enhance not only the functionality of your products but also the unboxing experience for your consumer which will lead to an increased customer satisfaction level.
Conclusion:
By evaluating and understanding your packaging systems, your packaging operations, and your overall supply chain risk areas, you have the potential to drive significant cost savings throughout your entire operation.
If you are unsure of where or how to start a packaging assessment, seek the advice of our client services team who can determine the best packaging strategy for your organisation - contact us.
Blog - Sustainable Packaging
