Guide to Saving Money on Packaging5 Steps to Better PackagingSo, you’d like to save some money on your packaging materials and processes. You’re in luck! We’ve written a handy guide to doing just that. So, follow our 5 steps to figure out just where in your packaging process you can save some cash.

Step 1

Make a master spreadsheet of your current packaging materials and costs, including labor.

Although this step can prove to be time consuming, it’s really the most important step in the whole process. Without seeing what you’re spending, where you’re spending it, you’ll have a much harder time figuring out exactly where you can save, and it’ll be harder to track whether or not any new materials, tools or processes ends up saving as much as you were hoping.

So, open up a spreadsheet and get started. Each row will be a certain process or product, and columns will be totals. For example, maybe your first row is ecommerce orders, or nails, or pallets of a certain size - whatever makes the most sense for your company. For your columns, include something like this:

• Packaging material #1 cost • Packaging material #2 cost • Packaging tool/machinery cost • Labor cost

The numbers can be yearly or quarterly - even monthly if you’d like. Again, whatever makes the most sense to look at from your business’s perspective. Make sure to include a final column for Total. If you’re bringing in revenue on these rows, make sure to also include a revenue column and subtract all your costs from your revenue.

After you’ve plotted out all your data, you’ll be able to easily see what’s costing you the most.

Do a Packaging Review

Take a long, hard look at that spreadsheet you made, noting where you’re either losing the most or making the least amount of revenue. Look at each step in your process.

What is it that’s causing that loss or smallest gain?

Most likely it’s an expensive material and you’re using too much of it, or perhaps there’s a tool or piece of equipment that takes longer to use and is causing a bit of a holdup and extra payout in labor costs.

Make a list of these items that you think could use the most improvement in your process. Make sure to also take a look at any employee health issues. Is there a certain tool or piece of machinery that’s causing repetitive muscle strains or other issues?

Step 2

Did you know that Pack Inc offers free packaging reviews?

Step 2

Do Some Research

What’s new in the packaging industry that you use? Is there an innovative new tool, packaging material, or machinery? If you’ve been stuck in your packaging ways for a while, odds are there’s something awesome out there that you haven’t seen.

Here are a couple things to think about:

STRAPPING: Plastic strapping has made leaps and bounds in terms of improvements, and is strong, safe and cost-effective. For many applications, it makes sense to switch from steel to plastic. It also saves on labor, since it’s lighter and easier to use, plastic strapping tools and machinery are safer and often quicker than their steel counterparts, keeping employees from straining themselves with heavy, bulky steel tools.

INSIDE THE BOX: There have been significant improvements in paper packaging recently. Our favorite is RanPak. Their paper packaging is environmentally friendly, protects perfectly, and is insanely easy to use. No matter how many packages you’re sending out in a day, they have different types of machinery based on your application and volume.

CARTON CLOSING: If you’re still taping by hand, it’s time to check out case sealers and tape dispensers. You can have a perfect strip of ready-to-place water-activated tape now with the push of a button, or you can slide a carton along a rolling line and, boom!, your case is sealed. How awesome is that? Not to mention it’s much faster than other by-hand taping methods.

GREEN: Does your company have a green initiative? Take a close look at the products you’re currently using. Are the recyclable? Made from recycled materials? There are many products out there now that are much kinder to the environment than their older cousins. If you want the world to know that your company cares about the environment, it’s time to take a look at better materials.

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Think About Weight

The weight of a package can make a huge difference in how much it costs to ship it. Even a tiny difference per carton can add up when you’re talking about per pallet, or per truckload weight. Just think about the chain reaction that happens when a package is lighter: the truck weighs less, the truck uses less fuel, so shipping by weight costs less and fuel costs are lower, the shipment process is less hurtful to the environment. etc.

Also, think about having product shipped to your facility. If you’re purchasing huge rolls of air bubble packaging, for instance, versus packs of paper, it takes more truckloads for you to get the same amount of product delivered to your facility.

So, do you really need a heavier gauge stretch film? Maybe it’s just a better performing stretch film that you need to get the job done. Do you need to use air bubble or packaging peanuts instead of paper, when paper protects even better? Less weight plus less damage is a win win!

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Involve the Experts

At Packaging Incorporated, we’re experts in outside-the-box, inside-the-box, and all types of packaging materials, tools and machinery. We even go so far as to review your entire packaging process, including labor and materials and tools, for free! We want you to be doing what’s right for your organization and your packaging applications. Each organization is so unique, there’s no cookie cutter plan that works for everyone. That’s why we’ll perform a free packaging review for you by coming out to your facility, observing your whole process, then making recommendations and demoing new tools and equipment.

5 Things to Consider When Deciding on New Packaging >

More Resources

Paper Packaging Set to Grow! Get on that Bandwagon >

Trends in E-Commerce Packaging >

Lock in Savings on Strapping by Making the Switch! >

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