Packaging cost is one issue we hear time and time again. The need to balance cost with efficiency and product protection is high on the agenda, but is sometimes a struggle. In our experience, opting for a cheaper product can often reduce the quality of the packaging materials used and as a result increase damage and return rates.

What if I could tell you there’s a way to reduce your overall packaging costs even when paying more for your packaging materials?

In fact, there are many ways. Thinking smarter about the packaging products you use not only helps reduce packaging costs, it can improve efficiency too.

One of our customers achieved a cost saving of 5% by switching their standard packaging boxes to a crash lock bottom alternative that is quicker and easier to assemble. See how in the example below.

Imagine a scenario in which you are running a packing operation for the online arm of a high street retailer. At average demand levels, you employ five people to cover the necessary shifts, each earning a wage of £15 per hour and packing 60 items per hour. The cost of their wage is 25p per item and each item packed uses a 20p packaging box and 5p of other materials such as tape, wrapping film etc, making every item packed cost your company 50p.

Then you discover a box that costs 30p, but which is self-erecting and reduces the time spent building each box. It enables your employees to pack 120 items per hour, halving their wage cost per item and making each item now cost 47.5p to pack. If you pack the same number of items you could halve the time taken and reduce packaging costs by 5%. In addition, now that packing time is reduced, you’re able to double the number of items packed each week and reduce delivery times.

To learn more about resolving your packaging cost issues, download our whitepaper below.