Not only is it beneficial to optimise and develop your packaging operation to reduce costs, but alternative packaging supplies can help your business become more eco-friendly and provide better protection for your products too.
Where some companies fail though, is when the quality of packaging is reduced considerably in the attempt to reduce overheads. This often leads to cheaper, poorer quality materials that simply don’t offer sufficient protection during storage and transport. With this, damaged returns increase, costing the business both valuable time and money.
Here are 3 ways your business can reduce packaging costs without sacrificing quality.
1. Analyse your warehouse layout
How your warehouse is arranged plays a huge part in the reduction of costs for your business. Are your packaging supplies organised in fashion? Could changes be made to streamline your layout and speed up your picking process? When it comes to saving costs, warehouse efficiency is key. If staff members are using up considerable amounts of time looking for the correct packaging money is being wasted. If you’d like to improve your existing packaging operations, try working through the following steps:
- Analyse your current inventory of packaging supplies. Make a list containing quantities and note down any key findings such as large quantities, small quantities, regularly used, etc.
- Using the list, identify similar items that can be grouped together
- Then identify infrequently used packaging materials and group those together
- Use your findings to place grouped packaging supplies relevant to your packing station. This should include moving frequently used packaging supplies closest to the station, with infrequently used supplies furthest away. While doing this, similar packaging products should be grouped to make locating them easier and quicker. For example, you may want to group your paper packaging separate to your plastic packaging.
Overall, your goal is to reduce several packaging lines into a few, highly optimised packaging lines. This will help you reduce labour costs by minimising unnecessary movement, while saving on storage space too.