It is always a good idea to review your packaging; make sure it is suitable for your products, that it is the best quality for your needs and the right price for your budget. But when reviewing your packaging, it may be worth reviewing your packaging operation as there will often be hidden costs that you might not see.
Hidden Packaging Operation Cost One – Storage
If your warehouse is full of racks that are crammed with packaging then this could be an additional cost; what is the cost of that storage? Why not free up this valuable storage space in your premises while improving your cash flow, by storing your packaging with the provider, like us, who can hold your stock for you and then drip feed it as and when you require?
Hidden Packaging Operation Cost Two – Transport
It is essential that you maximise your pallet yield and minimise your transport costs by reducing the size and weight of your packaging. This will not only help you save on your storage but you’ll also be able to reduce your shipping charges – then as an added bonus, the smaller package may now fit through your consumers letterbox which will save them time receiving your product.
Hidden Packaging Operation Cost Three – Damages & Returns
When you use packaging that is not fit for purpose then you are increasing a risk in your damaged product rates. This in turn results in increased labour and transport, as well as product replacement costs when processing the returns. Receiving a damaged product will also leave a nasty taste in your customer’s mouth, be of inconvenience to them and then risk damage to your reputation as a reduced number of repeat orders.
Hidden Packaging Operation Cost Four – Administration
You will spend an untold amount of time on the admin side of packaging orders, stocks and suppliers. This is time that can be saved and therefore be used in other, more essential parts of the business. By driving down your inventory stores you will be able to ensure that you have the right packaging products at the exact time and place they are required.
If you would like to know more about the hidden costs of packaging for your business, and how we can help reduce these costs then please contact our friendly and experienced team directly.We would be only too happy to help you make the most of your packaging.