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  • Nuera Packaging

8 Effective Ways to Save Packaging Cost

Updated: Nov 15, 2021

When comes to packaging, are you currently facing issues like high shipment and high material costs? However, it is sensible to review your packaging cost in this pandemic. Have you ever thought of other ways out to deal with your current situations?

Today, there are 8 ways to save cost on your packaging.

1. Structure Review

“My current packaging design is taking too much space and draining my wallet on shipping.”

With the unprecedent shipping cost, reducing unnecessary shipping volume will be the smart move to save some pennies for your business. For example, changing from a rigid lid & base box to flat-packed hinge boxes structure, it will not only reduce the shipping cost, but also save on storage cost and retail space. Not to mention by shipping less, we also reduce carbon footprint to our environment.

2. Alternative Packaging

When packaging cost increase, how practical is your current packaging or had it become a burden to your business? While we might think expensive means luxury and premium, would the perception still correct today when consumers begin to appreciate simpler and eco-friendly packaging?

In this situation, we have to think out of the box and explore alternative packaging, which might surprise you how much saving you can make yet able to maintain or enhance your brand identity at the same time.

For example, changing from rigid gift box to printed carton box can have significant advantage on packaging as follows:

· Product cost is much lower for printed carton box

  • Further saving on shipping and storage as they are normally flat-packed.

  • They are more eco-friendly, as less material used, less shipment, less carbon footprint

  • From the saving, you can spend a portion for enhancement effect like foiling/emboss/spot UV / ribbons etc.

3. Use Less Component

Two options to be considered: Receiving a delivery parcel with over-wrapping with layers of bubble-wrap? Or a luxury brand with more elaborate packaging, providing an unboxing experience with box of after box of packaging, couple with ribbons, tissue paper, flyers?

Reducing the amount of packaging is the most impactful change you can make to improve costing and the sustainability of your packaging. Reducing components means less material used, less energy, less production waste, less fuel burned in transit, less space in storage, and less packaging that needs to be recycled or disposed.

4. Machine made packaging

Fitting small accessories to packaging such as decorative ribbons, would normally need man-labor to complete the job. This would increase the cost comparing to fully machines made product especially when quantity is large.

5. Planning ahead

Buying from Fareast normally require lead time of 10 – 12 weeks to deliver to Europe by sea-freight. It is thus sensible plan ahead and order at least 6 months stocks. There are several advantages for a good planning:

  • Bulk buying quantity allow you to negotiate a better price. Higher cost when we make small and multiple buying and shipping.

  • Hold sufficient stocks would avoid unnecessary emergency delivery by air-cargo / courier.

  • Time your purchase to avoid last minutes order and paying peak season shipping rate.

  • Consolidate goods from different vendors and shipped in truckload or fewer LCL shipments.

6. Faster fulfilment

Time equal cost. The longer time your workers take to fulfil the product, the more manpower cost per unit. For examples, we like to create an impressive customer experience by offering gift wrapping service like ribbon bow etc in store. It takes skills and patient to tie a beautiful bow. And if there are 10 customers in the queue waiting, you are basically creating an impatient and frustrated customers instead.

The only easiest way out is with pre-made ribbon bow’s loop, which get the job done in 10 seconds, and you will create full list of happy customers while having more time to serve more customers.

7. Buy from experience supplier

Most business tends to reduce the operation cost by cutting out the agent, and looking to purchase directly from manufacturer. Unless you are a seasoned buyer or have a procurement team to perform the job, else you would be facing unexpected contingency which will incur more cost.

There are several challenges when dealing with manufacturer abroad:

  • Time / Language / Distance differences to cover come.

  • Inflexible design process where you are unable to choose of materials offer by suppliers.

  • Identify reliable manufacturer who can fulfil your requirements in quality and services

  • Risk of receiving incorrect or defect goods if you are unable to perform QC on site.

8. Faster fulfilment

Time equal cost. The longer time the workers take to assemble the product, the more manpower cost per unit. Therefore, try to avoid ribbons on side, opt for pre-tie ribbons or visual effects design on the packaging.

Besides, using crash lock boxes instead of both-tuck end packaging. Crash lock boxes could save the time of man power. It is also more convenient and simpler to be folded.