Reducing packaging costs can be an arduous task, which is exactly why most people try to save money by simply seeking cheaper materials. However, the cheapest packaging materials aren’t always the best quality or fit for your items, and doesn’t take into consideration the hidden costs they might cause.

The visible costs of packaging often cloud the hidden ones, much like an iceberg; from the surface you can see the cost of the packaging materials, machinery and systems, but beneath it all there are costs you don’t see. These are the costs that can make the difference between staying afloat and sinking in the business world.

If you’re only taking the total amount you spend on materials, machinery and systems as your packaging costs, you might be missing out on making even bigger savings. Check out the infographic above.

Damages

Every product that’s damaged or broken in transit leaves a big hole in your profit margins, especially after needing to refund and redeliver to your customers. Not to mention the negative effects it has on your company’s image.  Choosing packaging that saves costs by strengthening the safety of the item without compromising efficiency is the best possible way to dodge this financial bullet.

Losses

Again, losing packages not only costs you more as you’re refunding, but can also tarnish your image after resulting in unhappy customers. Solutions such as anti-slip and interleaving papers between loads are just some of the ways to help prevent slippage and increase stability, leaving packages less likely to fall and get left behind.

Storage

Warehouse space- saving can help your warehouse managers improve pick/pack timings and on –site efficiency. Automated void-fill systems are quick and convenient alternatives; reducing the space and making the packaging easier to handle, all while providing protection you can reply on.

Solutions such as rigid mailers and foam-lines media wraps with self-seal strips for closing and tear strips for easy opening, as well as cartons with suspension and retention films can take up less space than padded envelopes. They can also reduce the need for additional void-fill.

Automated and semi-automated stretch-wrapping systems offer versatile and flexible solutions to secure loads that can be moved around the warehouse as needed, and freeing up floor space.

These solutions are cost-effective, space-saving, and speed up your team’s productivity.

Distribution

Making changes to your packaging can help you reduce the costs of distribution in a number of ways. Such as reducing the volume of each pallet, as that’s what most logistics companies will base their charges on.

A different kind of void material to reduce weight and volume is an effective alternative, providing the packaged product is still protected.

Custom-fit delivery boxes instead of one-size-fits-all also helps when you’re placing items into secondary packaging for delivery.

Product/Pallet rejections

Products can be rejected for many reasons. It could be that the goods have become damaged in transit due to a collapsed pallet. Even if the pallets your goods have been delivered on are the wrong size or specification, or because goods have been contaminated due to a broken pallet.

Either way, your delivery won’t be accepted, which will cost you more money and again tarnish your company image, jeopardising future orders with your customers.

Time

We all know that time is money, so wasting it on materials that take a lot of time to assemble and distribute won’t do you or your business any favours.

Self-erecting boxes can reduce the time it takes to distribute items out for delivery. It reduces the time needed to build each box, allowing for a more streamline operation.

By spending a little more on better quality materials such as self-erecting boxes, for example, you can save in the long run by boosting productivity and making your customers happy!

To learn more about the hidden costs of packaging download our free whitepaper.