Cost Effective Packaging
Ensuring your packaging is efficient and manufactured to a fully optimised specification
Paying too much for your packaging? Not sure?
Regardless of whether you think your packaging is cost effective or not, one thing you cannot be so certain of is whether your packaging is being manufactured using the optimum material, techniques or construction.
In fact, many packaging companies when faced with problems of packaging performance, will simply over specify both the material used and the design. Effectively, they use a much stronger material than may actually be required, to ensure that the transit damage or other performance issues will be eliminated.
Whilst this approach works, the knock on effect is that price of the packaging is vastly increased.
By taking an engineering approach to either your new or existing packaging, your business can benefit from significant cost savings without compromising quality and performance.
This is known as value engineering packaging.
How it Can Reduce Costs
Ways in which value engineered packaging can impact your packaging spend
By working with GWP your business can take advantage of a key component of value engineering packaging – which is known as theoretical compression testing.
By considering numerous factors, including materials, dimensions, the product being transported, the construction, how high it may need to be stacked and numerous other criteria, the specific performance of each new packaging design can be accurately calculated.
If it is found that your packaging is over-specified, the costs can be reduced by switching material, or changing the construction (for more efficient use of material or to add strength). This is of course whilst remaining within the specified performance tolerances.
Even when the current performance level is correct, cost savings and even storage space savings can be found by re-specifying the material used – again leading to packaging cost reduction. This includes not only utilising different materials, but by eliminating secondary packaging too.
By taking an engineering approach to packaging design and specification, it ensures you will only notice one difference – the cost! Over the course of a year, the cost savings can frequently run into thousands of pounds – all without reducing packaging performance!
Indirect cost savings for your business
Besides the cost savings detailed above – achieved effectively through maximising material efficiency, there are a number of indirect cost savings that this facilitates.
For example, using a lighter grade of material can save on space required for storage and transportation. In effect, more boxes will fit on a pallet.
Similarly, another benefit is that the reduced weight of the packaging could also help to reduce your transportation costs.
Finally, lighter weight materials are better for the environment as there is less material to dispose of and / or recycle.
Adding strength and performance to packaging
Despite the clear benefits in value engineering packaging, the inverse can often be true.
It may be the case that your packaging isn’t performing well enough in transit to prevent damage. Using the same combination of tools, software and expertise, GWP can analyse the failures experienced and apply solid engineering principles to achieve the required performance level for your packaging.
This usually involves the analysis of material data including edge crush and burst strength but can also involve practical, controlled transit trials. Whilst this process may in some cases ultimately require additional cost to be added to the packaging itself, in many cases it does not.
Either way, the savings from reduced breakages in transit and lost clients will, on balance, provide significant cost reduction opportunities for your business.
Please click here for further details of how you can resolve issues you may be experiencing with transit damage.
Benefits possible through adopting an engineering approach to packaging design
As well as the use of intelligent engineering to reduce costs, there are often other, similar ways in which you can reduce your packaging spend using value engineering packaging strategies.
For example, besides the standard range of FEFCO designs you can choose from, GWP Group can offer you a unique library of structural designs. These have been continuously developed and refined to save businesses like yours money, while providing predictable, proven levels of performance.
This novel design library provides cost-effective solutions for an extremely wide spectrum of product types.
Besides this, rationalising your packaging inventory by combining similar or slower moving lines can help you benefit from economies of scale and lower costs. Minimising packing times and reducing shipping costs also have obvious, tangible benefits to your costs.
Whilst these strategies usually go hand in hand, they can only be achieved by taking a methodical, engineering approach. This is where working with GWP Groups experienced, award winning design team can maximise the benefits to your business.
Working alongside you at all stages of the process, your packaging requirement will be thoroughly analysed to ensure the perfect balance between cost and performance for your specific application.
Commonly asked questions about value engineered packaging
Think that value engineering of your packaging could help your business, but have a few questions first? The below sections covers a number of common queries to assist.
However, if you cannot find the answers you need, a member of the GWP team will be happy to help.
What is value engineering?
Value engineering is defined as “a systematic method to improve the “value” of goods or products and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be manipulated by either improving the function or reducing the cost.”
How can this be applied to packaging?
The way that value engineering is applied to packaging is typically through improving the material or structural design used. In many cases it can be possible to reduce the grade of material (i.e. thickness / weight) whilst maintain performance, which in turn reduces costs. Other methods include replacing void fill, aiding packing / assembly, and even rationalising a full packaging inventory.
Can changing packaging material really impact my business costs?
Over specified packaging materials are one of the most common forms of wasted spend in a business’ packaging. Expert packaging designers can typically analyse the grade of cardboard (or foam etc.) used and – along with complex software and physical testing – create packs with a lighter weight of material that maintains performance whilst also being cheaper.
Are there any other benefits of value engineering packaging?
There are a number of indirect benefits of value engineering as well. As just one example, using a lighter weight of material can help to reduce transit costs, and will take up less space in storage as well. Using less material also has a positive environmental impact.
What other ways can I reduce packaging costs?
There are numerous other ways to reduce packaging costs besides value engineering. This includes reducing packing times, preventing shipping damage (and costly returns / replacements), minimising stock holding through a Just In Time supply, and even identifying inefficiencies and opportunities through a full packaging audit.
All the ways you can benefit from value engineered packaging
- Intelligent use of material to reduce costs
- Structural designs that maximise material / performance efficiencies
- Analysis of existing or new packaging to ensure the correct specification
- Savings on storage, weight (transit cost) and disposal costs due to less material use
- Proven designs that will not compromise performance in transit
- Compliments other cost saving strategies
Find Out More
Get advice from a packaging engineer
If you would like to find out if your business’ packaging is over specified – and therefore costing you too much – please get in touch for a free consultation.