High Freight Packing Costs? Reduce By The Following 7 Ways
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Packaging of your products may be one of the important factors for the success of your company that you don't know. In addition to attracting the attention of your consumers and protecting your products, product packaging can also have a significant impact on your logistics and distribution costs.
Why so? Because many businesses don't really think of ways to increase their packing productivity by trying to streamline their product packaging because they're just focusing on averaging how to increase production capacity alone.
They may have invested so much time and effort into making the latter more efficient and effective, without even thinking about how they package the product.
As a result, they might just be spending more money than necessary if their product packaging is efficient. Fortunately, there are some adjustments you can take to make sure your company doesn't fall due to this packaging issue.
For example, by switching to digital printing, it can save a large amount of money compared to the previous traditional method. This is because in the short, and medium-term it will be more affordable for a specific product line, which limits the excess or inventory of outdated packaging.
A redesign package can also allow you to benefit from advanced printing techniques that can reduce material costs. For example, by purchasing a certain Printer has the ability to print the label directly to the bottle. Or changing the shape of the bottle can also allow more products to fit into the carton or onto the pallet to get a greater level of efficiency.
As a manager or Supervisor who serves on manufacturing and production floors, your goal is to increase productivity at a lower cost always at the top of your priority list.
According to some analysts, shipping and labor costs and inventory control are key contributors to lowering productivity and increasing operational costs. Unfortunately in the analysis is not mentioned how the impact of those numbers, or where it should be to start the improvement.
By reviewing the overall packaging and production lines, you can find a number of ways to reduce the total cost of packaging that will impact your workforce while increasing the level of effectiveness and efficiency.
As a reference, here are seven ways that product packaging can positively impact the efficiency of the cost of packaging, such as:
1. Material Selection
A simple question for you. When was the last time you reviewed your product's packaging? Do you use more packaging material than necessary for your product? Have you used the ideal ingredient?
With a selection of product packaging materials available on the market and alternative packaging "Go Green " to meet the demands of major retailers and consumers in general, then reviewing the packaging of your current product should be considered.
Many particular Shrink Film products can handle heavy products that previously require corrugated tray packing. Conducting reshuffle or Overhaul of different packaging can drastically reduce the overall cost of your product packaging.
2. Automation of Packaging Machine
Your current processes may impede you from greater productivity and reduce the cost of packing your products. It depends on how the floor structure of your production. You may be able to reduce the amount of manpower required by automating some (or all) of your product packaging processes.
It is an investment in the beginning if automated automation is often the reason for decision-makers to keep using the current way. You as a manager must conduct a fee analysis for the procurement of the automatic machine. Calculate labor costs vs. the speed of return of the machine purchase with a clear answer to the management of the company so that they can see from its long-term perspective.
For example, for example, by applying an automatic L-Bar Sealer and eliminating the position that was previously required to seal your product in the movie manually, you could potentially save a considerable amount of money per year and could return the purchase capital of the machine within a one-year period.
3. Reduce Energy Costs
By reviewing the energy use that requires a big cost, you can currently switch to a greener alternative way. Not only will you save the overall utility cost, but you can also save on maintenance costs.
A small example, let's take a look at the lighting currently on your machine. Have you switched from neon lights to LED retrofits? You can expect substantial money savings per year just by switching from old T8 lamps with LED lamps.
The Cost recovery is also fast because the average is under 3 years old, and the LED light can last more than 10 years before the replacement when turned on nonstop 12 hours per day.
In addition, you can also consider switching using a pneumatic packaging machine in comparison with the engine using an air cylinder.
4. Preventative Maintenance Machine
Doing preventive maintenance of your machine is one way to increase productivity and increase uptime in manufacturing facilities. According to eMaint (emaint.com), many studies show that companies spend as much as 80% of their time reacting to problems rather than planning ahead or preventing that problem from occurring.
If you do not have a preventive maintenance program for your packaging machine, then you are allowing the opportunity of an unscheduled downtime resulting in an unplanned cost by you, and this is obviously a good thing for the company.
5. Buy Packaging In Bulk
You buy your product packaging material based on what it takes, but if you have enough space available, you can buy packaging material in a large quantity so as not to lose the discount offered by the supplier.
But it's important to keep in mind that certain packaging materials have expiration dates. Check with your supplier to see how long the product you're about to buy can last if it's saved.
If you end up buying more for a discounted price but end up with more stock than you can use in a certain period of time, you may be stuck with useless stuff (deadstock) that consumes storage space and adds to your warehouse costs.
You can find a significant discount on your packaging material by ordering in bulk, but keep in mind that revisiting the packaging design need to think about.
6. Reduce Damage
If you notice a large amount of your product being damaged before it comes to end-users or retailers, it may be due to the way the wrong packing goods or it is a sign that it's already worth the time for you to review your product's current packaging. Too much risk is at stake here, and it's more than just a breakdown of your stuff, namely the damage your reputation has on the eyes of your customers. Determine the main cause of the damaged goods by conducting the damage audit recorded during the last year and then doing a redesign to resolve the issue.
If your product breaks down during delivery, there are a few things that need to be considered. You may need to increase the gauge (thickness) of your plastic stretch film if the product is on top of the pallet for a long travel duration.
Verify that the plastic film you are going to use is compatible with your current machine. Some plastic films are not designed for certain types of machines. In any case that happens, it will be a review material to discuss in order to find a solution so that the problem does not happen again later.
Discover significant savings steps by using your outsourcing packaging with the Packager contract that can handle your product with care. When you Outsource with a qualifying Co-Packer, then you no longer need to manage the packaging at all, as they will handle your product ranging from packing to shipping.
A good Co-Packer will offer a turn-key solution for your business and will manage a trained workforce, space, and inventory for your products. Co-Packer can take seasonal projects or forever for your products at their own facility at a fixed cost.
There are more ways than you can make a positive impact on your production, packaging, and labor costs this year, but using this packaging issue as a starting point to start is a thing to do.
So, that is an article on High Freight Packing Costs? Reduce By The Following 7 Ways. Hopefully it will be useful for you.