How do you reduce packaging costs in wholesale
Lower packaging costs & optimize processes
Take in the shipping system of all companiesPackaging material and packaging processes as a cost factorr an often underestimated role. Since the processes, just like the suppliers, have often grown together with the company, they are hardly ever questioned later. Often, when planning, only the purchase price is considered and it is forgotten that a number of follow-up costs arise depending on the type of packaging. Developing an awareness of the numerous aspects of packaging material as a cost driver is the first starting point for reducing packaging costs. In addition to introducing the cost issue, a continuous analysis of all associated processes is important in order to use attractive savings potential in the long term and to optimize processes in packaging and shipping in order to achieve the Packaging optimization based on a better workflow and less tied storage capacities effectively. This process analysis in the area of shipping, production & packaging is often not necessary, because packaging optimization is very low on the passion scale of most entrepreneurs. But actually the whole thing is easier than expected and even small changes can release huge savings potential. There are also competent contacts and experts who can help you with cross-divisional process analysis supported, interdepartmental interviews lead and on a large network of suppliers and manufacturers can fall back on. This is the only way to have the necessary know-how to check prices for their market conformity, as these also often depend on the current raw material prices. As an entrepreneur, you cannot keep an eye on all of these factors yourself, which is why you should employ competent contact persons, manufacturers and suppliers. Because your company, too, wastes great potential for rationalization when familiar processes take the place of well thought-out packaging processes and materials. For this purpose, modern packaging service providers take on a role similar to conventional controlling by uncovering optimization potential and problem areas.
The many aspects of packaging costs at a glance
As Packaging material manufacturer & wholesaler activaTec has always focused on its packaging solutions like the Air cushion machine or our extremely stretchy ones Stretch film both to simplify the work steps and to reduce the amount of packaging material used. Through the use of Bubble wrap Instead of conventional filling material, you can achieve a better one, for example Volume utilization rate per shipment, replace 10 x 500 liter bags of styrofoam chips with just one roll and save thanks to theFilling the pillows and mats with air at the packing table additionally Delivery costs. Not to mention the much smaller storage space you need for the bubble wrap rolls. This is how you effectively reduce packaging costs. But the Kpackaging materials are just one of many aspects of packaging optimization. Actually, they do Procurement costs of packaging materialsn on average only 20% of the total packaging costs out. The remaining 80% are costs for packaging processes such as the effort for shipping, the personnel costs for processing and internal logistics.
The extent to which costs are incurred for packaging from packages to containers naturally depends on individual factors such as the industry or company size. However, it can roughly be said that only across industries around a third of all packaging costs for the Purchase of the packaging material attack. There are a number of hidden cost factors, which are also called invisible packaging costs are designated.
Invisible packaging costs are for example:
- Storage of the packaging material
- suboptimal volume utilization (Plan shipments better and adapt them to box sizes)
- outdated specifications
- an outdated range of packaging materials
- Picking and shipping costs
- Disposal of packaging
- Costs for in-house packaging and logistics processes
- too high material consumption
You can optimize all ‘of these factors with our innovative packaging materials. In addition to the aforementioned bubble wrap, you can also benefit from ours, for example Multi-layer stretch film. thanks to the 300% stretch potential you can use our stretch film in fewer work steps or walking around the pallet and with less material consumption to the Stretching of pallets use.
If there is also one in-house processing of returns and if packaging is processed centrally through in-house sales, the handling of packaging quickly becomes an unknown cost driver in dozens of company processes. The entire value chain must be analyzedto get a real approach to reducing packaging costs. How to optimize returns handling & processes we have already examined in detail in another article.
Intelligent packaging optimization to reduce all elements of the packaging costs
As soon as the interrelationships around the in-house shipping system are known, an analysis of the individual interfaces is advisable. For example, larger companies should analyze the conditions at their individual locations as part of a holistic packaging optimization.
The Analysis of the packaging processes as part of intelligent packaging optimization includes:
- Procurement of packaging
- In-house logistics (Intralogistics)
- Shipping logistics
- special customer requests (Recyclability, environmental friendliness, representative packaging)
- Packaging variants
Here, deviations in the processes can provide indications of good and bad strategies in handling packaging. The direct one Discussions with individual departments from purchasing to the warehouse to logistics specialists is helpful to gain different perspectives on the subject of packaging. Professionals such as the team from Verpackungskosten-optimieren.de will also help you with this.
Of course, it can be worth considering whether the packaging material used so far is still suitable or whether there are good alternatives available. The quality of the material should not suffer as a result in order to ensure that goods can be shipped safely. There are better starting points for handling the packaging in-house, for example when labeling and packing the boxes in the warehouse or in the shipping department. Depending on the customer base and industry, it is also possible to use one Packers pool to benefit. In this case, packaging will only be provided and paid for if your company specifically needs it. This saves storage costs and accelerates a large number of internal processes as soon as the system has been used in-house.
Another aspect of intelligent packaging optimization is called Predictive Analytics and an analysis of the supply chain.
By carefully analyzing previous peaks in shipping, production and other areas of logistics, for example, a more precise estimate of the required quantities can be made possible. You can also identify, for example, that certain packaging sizes are rarely used at certain times and that multi-packaging could be the solution here. Furthermore, with the help of big data, you can identify more precisely where increasing efficiency really makes sense, because the entrepreneurial instinct is not always right.
Use synergy effects of packaging optimization
As part of the process analysis and the interdepartmental and cross-location interviews, measures that can be applied to the work environment and the workflow in production, packaging and shipping often become clear. Here you can often advance packaging optimization with extremely inexpensive measures. A more precise selection of the packaging used can, for example, also reduce the workload and the burden on employees, which in turn reduces indirect costs such as sick days and fluctuation. Standing aids and adjustable packing tables can help here, for example. It also makes sense to cleverly organize packing tables and reduce the necessary steps to a minimum. Our accessories for air cushion machines, for example, offer the option of using a mobile packing table so that not every packing table needs its own machine and this can still be used where it is needed. Even little things like exchanging styrofoam for bubble wrap as a filling material have other positive effects. For example, your employees can conveniently carry the roll of film in their pocket and are ready for use anywhere instead of having to constantly walk to the warehouse with the polystyrene bags.
The use of modern hand stretch film not only enables material to be saved. At the same time, you can unroll by hand or with our help Stretch film dispenser much easier and thus also saves manpower. Pallet stretch band in turn helps to protect goods from tipping over during internal movements without having to completely stretch them in each time, which also saves material and time.
Reduce the variety of packaging
Another measure that is often neglected in the context of packaging optimization is reducing the variety of packaging. Modern packaging materials make it possible, for example, in the form of variable folding boxesto adapt the size of the packaging to the product instead of having various packaging sizes in stock. This saves procurement costs, storage capacity and work steps. In addition, you increase the degree of volume utilization, because the precisely fitting shape of each product saves you filler material. The utilization of packaging carriers such as Euro pallets is also improved. Often there are also warnings such as "Risk of breakage"Or"Watch out, glass!“Attached as a sticker on cardboard. Modern and cost-saving warning tape combines adhesive tape and warning notice and also saves work steps and costs.
See the handling of packaging as a holistic problem
Efficient handling of packaging in your company is desired from all sides. Which problems arise and which costs can be avoided are only clearly addressed in the respective department and addressed by the relevant employees. Instead of dealing with individual symptoms of the problem in warehouse, purchasing or sales, the handling of packaging should be viewed from a holistic approach. When applied in the right places, changes have a positive effect on various areas of the company, after all, the entire value chain is closely related. External advice is often worthwhile in order to obtain initial clues for optimizing your own shipping system.
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