Cost Effective Packaging.
Proven strategies and ideas to help you reduce packaging costs throughout your business
With increasing competition across practically every market sector, plus price pressures affecting everything from raw materials to logistics, companies must look at ways to reduce costs to remain competitive.
Packaging is no exception to this. As such, many companies view packaging as a necessary evil. A cost that has to be met.
But, your packaging can say a lot about your business. It can carry your branding, offer protection for your products in transit, and it is often the first thing your clients will see when receiving your products.
There is no better way to lose a customer than having your goods arrive damaged.
Because of this, many successful companies see their packaging as a way of promoting their business, boosting sales and improving efficiency. Companies that recognise the importance of good packaging frequently boast both great brand awareness and satisfied customers.
Many would also argue however that these benefits come at a high cost.
By working alongside GWP Group, the aim will always be to have a direct, positive impact on your business’ profitability. It is a fundamental belief of GWP Group that your packaging should offer all of the benefits you would expect, but at a cost which works for your business.
Please see below for further details of strategies that can reduce packaging costs, regardless of your industry, product or application.
All the ways in which your packaging can positively impact costs
Please see below for the strategies and ideas that GWP can help you implement to reduce your ongoing packaging costs.
02: Further Ideas.
Additional strategies and tips that can aid cost reduction projects
As a starting point, GWP often carry out theoretical testing, which analyses the performance of existing materials used along with the dimensions and style of your existing packaging. Other factors such as the weight of the product, required stacking height, environment and intended use are all also accounted for.
This will provide a strong indication of whether the current material and design is optimised for the application or, in many cases, over-specified.
Whilst over-performing is obviously better than under-performing, our design team can vary the parameters (for example the board and box style) to produce a solution that is well within safe performance levels whilst still allowing us to reduce packaging costs.
This can then be further tested through transit trials, ensuring that the theoretical changes made deliver benefits in the real world.
So whilst you see no difference in the performance of your packaging, there is one major difference that you will see – the cost. Over a customer’s entire annual packaging spend, the cost savings can often total tens of thousands of pounds!
Plus, of course, there are many other benefits resulting from a project to reduce packaging costs, including cash flow, profit margins and ultimately a healthier bottom line.
Packaging cost reduction with engineered performance
An increasing number of companies are turning to GWP Group to engineer cost savings in their packaging and, ultimately, reduce packaging costs.
And whilst competitive tendering always has its place in driving down cost, even greater gains are to be made through the intelligent use of materials and design.
Through the combined use of specialist software and an in-depth analysis of your current packaging methods, an experienced design team will identify real cost savings through better material selection, design and manufacturing methods.
Industry standard packaging designs and proven solutions
As well as all of the clever engineering to reduce costs, there are often simpler ways in which you can save money.
Besides the standard range of FEFCO designs GWP offer for example, many years of experience has led to the creation of our own library of cost-effective solutions for an extremely wide spectrum of product types.
Over the last twenty-plus years, these have been continuously developed and refined to save your business money while providing predictable, proven levels of performance.
Additional ways to reduce packaging costs
Savings on the cost of packaging are often only one part of the benefits GWP can bring to your business.
For example, savings through the reduction of damage and breakages in transit can easily exceed those to be made on packaging spend alone.
When coupled with a full packaging audit which can also reveal time (and therefore cost) savings in terms of assembly and packing times, GWP are certain you can reduce your packaging costs in at least one, if not many, ways.
Summary of how GWP can help reduce your packaging costs
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If you think that your packaging isn’t cost effective, is placing a strain on your business’ potential for success, or just think it could be made to work herder, please get in touch to see how GWP Group can help.