The most common approach when considering how to reduce packaging costs, is to focus on unit price (‘hard savings’), and whilst it is always sensible to ensure you are getting the best price for what you need, this can sometimes lead to compromising on material quality and performance – which can often welcome a new set of headaches!
However, it is also possible to reduce your overall spend without sacrificing on quality – in fact, sometimes even paying slightly more per box can deliver significant savings overall!
The key is in reducing packing times (which we refer to as ‘soft savings’). By streamlining the packing process, you can reduce labour costs, increase output and overall productivity, but still maintain the packaging quality, thus avoiding increased transit damage or returns.
The first step into considering how you can reduce operational activity and packing times is to complete a review of your overall operational process.
A key part in the process is to identify any packaging that is particularly time–consuming to use or assemble. An important measure is to consider the true cost of packaging used per order, rather than focusing on the individual consumable unit cost, especially when reviewing items such as void fill, cushioning materials and tape.
Alongside improving productivity, using the right packaging that is intuitive delivers other business advantages, such as:
By synergising packaging and associated operations, your business can save time, cut costs, improve staff morale, enhance customer satisfaction, and reduce your environmental impact.
Optimising workflows and your workspace is essential for boosting efficiency and improving productivity. By identifying and eliminating bottlenecks and unnecessary actions or processing steps (those hidden costs), businesses can make better use of available resources and space.
An effective 5S based workspace layout supports free-flowing processes and increased operational stability by reducing unnecessary movement and stoppages. This approach also offers operational agility, giving businesses the ability to react to short term changes in demand.
By optimising your packing processes and workflow, you can benefit from faster order fulfilment, reduced costs, and higher operational efficiency whilst improving your business profitability and brand reputation.