Every business looks for ways and means to reduce expenses, and save money. Most businesses now have an online presence and that has led to an increase in revenue for many companies. This is because they are able to widen their geographical reach and enter markets they hitherto had no direct access to.
While this is definitely a good thing, businesses that ship products to their customers know exactly how important having the right packaging is. They are also aware that if they scrimp on this aspect they may just end up spending more on replacing items that have got broken or damaged in transit.
If this happens too often, it can impact the profitability of your company and will damage your reputation as well. And so, when you look for ways to reduce costs on packaging, you find that you are in a Catch 22 situation. But there is a way out. Here are some tips that can help you save on your packaging and shipping expenses:
#1 Identify What the Actual Cost of Your Inventory Is
In order to determine this, you would have to keep various factors in view, such as:
- The cost of the stock
- Cost of rent and the infrastructure
- Handling
- Utilities
- Business rates
Not many business owners realise this, but the right kind of packaging can go a long way in keeping all these expenses down. For instance:
- Identify whether singe-walled packaging work well for your products, or do you need double/triple-walled ones?
- Would smaller primary packing work for individual items?
- Would palletising work for multi-piece consignments?
- Optimise your storage facilities
- Focus on increasing the efficiency of your staff processes
- Use racking systems that work for your specific business needs
- Use energy-efficient lighting systems for your storage units
#2 Use the Right Technology
It’s important that you use reliable inventory management technology; this can go a long way in increasing your revenue, reducing your workload, facilitating better customer service and keeping your costs low. Of course, this may not have a direct impact on packaging costs, but you indirectly save on packaging processes and your storage facility’s staff.
#3 Train Your Employees Well
While most credible companies conduct training sessions as a matter of routine, even for their warehouse and packaging team, it’s not uncommon for people to over-package or under-package items. While the latter can result in damage to delicate items, the former can result in escalated packaging costs.
#4 Tie-Up With a Reliable Logistics Partner
This is another important aspect. Aside from the fact that a good logistics company will provide you good shipping rates, they will also advice you on what kind of packaging will work best in terms of costing and which shipping options will provide you value for money. This can help you save on processes as well as delivery costs.
#5 Package the Products Right
Some things to keep in view:
- Ensure you use strong boxes of the right size based on the products you are shipping.
- The item should be placed in the middle of the box and the packaging should be placed carefully all around it.
- Using foam-lined boxes is a good idea; not only do these protect the merchandise, but they look better as well and that can impress your customers.
- Poor quality boxes may be cheaper, but they can get easily damaged and will also damage the products that are being shipped.
- Use pillow packaging and bubble wrap and foam as required.
- Use waterproof packaging when you are shipping products during the rainy season – this will help protect the items inside from getting damaged.
For effective and sustainable cost reduction opportunities & efficiencies that will increase your bottom line, contact the experts at Benchmark Cost Solutions at this number – 02 9525 0777. If you prefer, write to us at this email address, and we will revert quickly.
Thanks for reading,
Benchmark Cost Solutions Team
02 9525 0777
