Tips To Reduce The Packaging Cost In Manufacturing
There are various types of costs associated with the manufacturing of products. One such cost is the packaging cost in manufacturing. It is the cost involved in the packaging of each of the products. Packaging plays a vital role in building the brand and enriching customer’s shopping experience. This is why manufacturers end up spending a fortune on the packaging cost in manufacturing.
Fortunately, you can reduce the packaging costs while maintaining the brand identity and integrity of your products. Because packaging will sell the product for the first time, but what’s inside will sell the product for the second time. Here are some packaging strategies and solutions that help reduce the amount of money and time that you invest in the packaging process.
Automate Your Packaging Process
Automation of the packaging process is one of the most effective ways to reduce packaging costs in manufacturing. It will boost productivity by reducing packing times. Your employees could be spending time constructing corrugated cardboard, inserting dividers, assembling cartons, and taping and sealing the boxes. However, if you install an automated packaging line, then it will also improve your output, reduce your carbon footprint, enhance brand reputation, and reduce workplace injuries. Thus, saving you time and money from packaging costs.
Use Smaller Boxes
If you use large boxes to deliver small products, then you will end up missing out on an easy cost-saving option. Small boxes will allow you to maximize the packaging space by shipping as many products as possible in one box. Moreover, you can contact your account manager to negotiate the shipping price because you are shipping many boxes regularly.
Buy A Small Amount Of New Packing Products
Look for new packing products but don’t buy in huge quantities. Evaluate how it’s working under different conditions after buying in small quantities. For example, you have found a material that provides better safety of your products, which will ultimately limit the amount of money you lose on replacements and returns. On the other hand, even if the material doesn’t perform well, you have nothing to lose because you don’t have a large quantity.
Determine The Durability Of Your Goods
Not all products require the same attention and care. Durable products will require less packaging cost in manufacturing. Thus, you can divide your products into the below-mentioned categories:
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Complex
This category of products will require a complex packaging process. They may contain sensitive equipment or calibrated components. Hence, they require durable, customized, and specialized packaging. You can spend 8 to 10 % of the product cost for this category of packaging.
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Fragile
In this type of packaging, the products require internal components for security. You will need packaging materials to protect against activity during transit. You should roughly spend 3 to 7% of the product cost.
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Marketing Materials
This type of packaging requires professional printing services. Hence, they will require high-end materials for packaging. Spend 3 to 7% of the product cost for this category.
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Durable
This type of packaging is for the most durable products and requires only open crates with a protective cover to avoid dust and debris. You should spend no more than 2% of the product cost on this type of packaging.
The packaging is one of the things that you should regularly look at and try to improve. In this modern world, technology is creating new materials every day. Hence, don’t just spend all your money on the old packaging process. Make sure that you are using the best possible solutions that your budget can fit. Do your research and select materials that are eco-friendly because the world is already suffering from pollution due to wastes.
If you are planning to repack the produced good or get the entire rework done, then our Acu Process manufacturing can help you do the same in a quick and efficient manner. You can trust Acu Process Manufacturing with ensuring the best repacking at the lowest cost.
Vijay comes with a vast experience in ERP and enterprise solutions space with about 20 years of experience in various packaged application like Acumatica, SAP, Orion, Salesforce.com, SugarCRM and, SalesLogix.