Protective packaging is an essential component in the supply chain; without a practical way to safely store and transport goods, businesses could never fulfil their orders and keep their customers happy.
But protective packaging adds extra costs to any delivery, and given the competitive nature of business, profit margins are being constantly squeezed. It’s no wonder many businesses are looking for ways to reduce protective packaging costs without compromising on the protection offered.
In this article, we’ll look at ways to effectively lower protective packaging costs without surrendering its quality. Here are our top tips for reducing protective packaging costs.
1. Purchase Protective Packaging in Bulk
Protective packaging is necessary in order to ensure that goods aren’t damaged before they reach their destination. But business owners aren’t always happy when the costs begin to add up.
The simplest way to reduce your protective packaging invoice is to purchase products in bulk. Economies of scale offer an excellent solution when large orders need to be placed, as suppliers are able to lower their costs and offer a better price per piece, safe in the knowledge that they’re making returns through bulk purchases – and you’re left with a great deal and a long-term supply of packaging.
2. Streamline Your Inventories
If your business keeps lots of stock in its warehouse, streamlining your inventories is an excellent way to reduce packaging costs. Again, economies of scale can work directly in your favour.
Rather than selling multiple items each requiring different types or sizes of packaging, a streamlined inventory that only stocks and ships a small number of items or goods can lower costs by only having to purchase one or two varieties and sizes of packaging.
Streamlining an inventory increases your demand for one type of packaging, allowing you to make even larger bulk purchases for bigger discounts.
3. High-Quality Packaging Prevents Damaged Goods
It’s all too easy to fall into the trap of saving money in the short term by going for the cheapest products available, but this is never the best approach to protective packaging.
Protective packaging – whether a cardboard box or steel drum – needs to be produced from high-quality materials. It needs to protect the items contained within otherwise it’s a waste of money.
While the best quality packaging may cost more in the short term, in the long term it results in fewer damaged goods and more happy customers. This gives you higher profit margins and more repeat custom.
4. Have a Packaging Audit Carried Out
When was the last time you asked why your company uses the packaging it does or packs goods the way it does? Often a simple packaging audit can reveal a wealth of information about a business’s packaging needs, highlighting areas where money can be saved or more effective packaging can be used.
Do you really need more expensive steel drums, when cheaper plastic drums can fulfil the same task to the same standard? Are single-walled cardboard boxes resulting in too many broken items, when you should be using double-walled ones?
Take a step back, evaluate your packaging goals and requirements, then find the most cost-effective solution while maintaining the high standards your customers deserve.
5. Take a Sustainable Approach to Protective Packaging
Taking a long-term approach to protective packaging is the best way to save on costs in the long run. We don’t just mean choosing quality packaging products over cheaper ones; it’s also important to consider long-term sustainability.
Choosing greener, more environmentally friendly products is not only good for the planet and for your brand, but for your bottom line too. Products such as plastic barrels and steel drums can be used time and time again for storage and transport, and they can be repaired, reused and eventually recycled. Other products, such as cardboard boxes or fibre drums can all be reused and recycled, too.
Save money by recycling, build a brand for the future, and save the environment by taking a sustainable, long-term approach to protective packaging.
Contact ITP Packaging to Find Out More About Reducing Your Protective Packaging Costs
Protective packaging doesn’t need to be expensive when you work with experts. Our team of professionals are ready to answer your questions about reducing costs and making bulk purchases, so you can source the right packaging at the best price.
We stock a wide range of quality packaging products designed to be cost effective and long lasting. For more information, don’t hesitate to contact ITP Packaging today.