In this highly competitive business world, all the companies are continuously looking for ways to cut the cost of operation. While re-designing the products and availing raw materials at cheaper rates are great ways to cut costs, there are other areas such as product packaging that offers some good opportunities for cost cut. No matter the size of your manufacturing business, you will love to adopt one or more of the following ways to cut packaging costs in your business:
1. Outsource If You Operate On A Small Scale
Outsourcing is arguably the best option especially when you operate on a small scale. Having all the necessary packaging related machinery, workers take a huge investment. So, you can just look out for refutable packaging service providers around you and make a good deal with them. This can save you a lot of money. So, you don’t have to invest in large machinery or pay salaries for workers when the workload is very minimum.
2. Always Buy Packaging Materials In Bulk
This is just common sense for any business. If you buy materials in bulk, you can still have a cost advantage. Just look for the best packaging materials around, and once you are sure about the quality of the packaging materials, you can ask for a discount for bulk purchase. Almost any packaging material supplier will offer you a significant discount when you buy materials in bulk.
Another popular practice among successful manufacturing businesses is having a fixed supplier for necessary packaging raw materials. Just have a monthly or yearly deal with specific suppliers and do not change too often. This will allow the suppliers to offer you best price eventually reducing the cost of packaging of your products.
3. Consider Packaging Redesign
If the packaging of your product has unnecessary layering, consider redesigning the packaging. With proper research and development initiative, your company may come up with safe and perfect packaging for your products at much less cost. You can order custom boxes tailored specifically to protect your product.
4. Automate Packaging
If your company still have manual or semi-manual packaging procedure, consider automating the whole process. While the initial cost of automation might look costly, you can certainly have a huge cost advantage in the long run.
5. Adopt Flexible Packaging
Flexible Packaging is a great option for products such as backed goods, breakfast products, tea, coffee, confections, beverages, backing mixes, seafood, snacks, refrigerated meat and dairy, toys, pet food and supplies and so on. So, consider the option of flexible packaging as it offers multiple benefits such as less packaging materials needed per unit of product, takes less space in warehouse and transports, and lengthens product life in shelf and lesser cost of packaging.
6. Work With A Printer Who Understands Color Management
Printing is always an important cost associated with product packaging. A simple change of colors can sometimes make a big difference in reducing the cost of packaging. You do not have to spoil the attractiveness of the product packaging. But just look for some alternative product packaging color options with a printer who understands color management.
7. Remove/Avoid Wastage
The packaging of your company’s product may be producing some level of waste that is not acceptable. You need to know the exact percentage of wastage generated by the packaging department. If the amount is not acceptable, look out for options to remove or avoid wastage, and you can cut some costs.