2 Important Factors You Must Consider to Save on Packaging Costs
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Packaging a product is an important part of any manufacturing process. Packaging often serves a dual purpose. The main purpose of packaging is to protect the integrity of the product before, during and after shipping to the customer. The packaging must be durable, as well as, attractive to the end consumer in order for it to be considered a success. On the manufacturing end, however, it is always wise to consider having a packaging cost analyst take a look at areas where waste can be eliminated in order to save on packaging costs.
There is a growing need for experts in packaging consulting who can analyze current manufacturing packaging processes for total efficiency. When budgeting for this important task there are usually two main considerations: packaging development costs and packaging process costs.
Any good packaging consultant will tell you that the world of packaging continues to change and evolve. Packaging that may have worked well ten years ago, may not be so desirable in today’s ultra efficient environment. The economics of packaging come into play when looking for ways to trim the fat and increase overall profit margins. First thing to consider is what improvements have been made in packaging materials for certain products. A lot of emphasis is focused on choosing lighter weight, durable materials that provide more functionality while using less material. For instance, an item that must be protected from jostling while shipping can have packaging designed to include sturdier restraints while eliminating bulkiness. Budget-friendly recyclable materials are used in many of today’s packaging materials mix, which helps cut down on environmental waste.
Secondly, a company needs to take a look at their process regarding packaging creation and use. There are serious costs related to this as well, and therefore, should not be ignored. These costs includes research, design, development of unique molds and machines, labor, purchase of materials, testing, corrections, and shipping. There are one time costs, as well as, ongoing costs associated with packaging. Keep in mind that it is quite normal for a company to not make back initial packaging set up costs for up to two years.
In order to obtain the maximum benefits from everything associated with packaging production and shipping, it’s essential to know where every cent is being spent in relation to this important element of your manufacturing operation. By looking at ways to upgrade materials, incorporate new technology and improve overall production, real savings can be achieved by coming up with a smart packaging plan of action.
