How efficient industrial packaging can improve profit margins

No matter what your business, in today’s tough economic climate, every company wants to do what they can to save money and help their bottom line. For companies involved in the manufacturing and distribution of products, making these six changes to how you choose and use industrial packaging can go a long way to helping improve your profit margins.

Flexible packaging

Nowadays, there is a wide range of flexible packaging available to help companies keep their costs down. Packaging made from polyolefin, for example, is lightweight – meaning your shipping costs are lower – and long-lasting – meaning you don’t have to restock as often as you might with other types of packaging. Bulk bags (or FIBC bags) can also help you keep shipping costs down by allowing you to transport larger quantities of goods in one shipment than other industrial packaging methods, which offer a much less efficient use of space. 

Planning

Deciding what packaging you are going to use should be an integral part of your planning processes and not left until production is already underway. Leaving decisions to the last minute might mean your preferred option isn’t available and you are left, instead, with a more expensive choice that isn’t really fit for purpose. Making decisions well ahead of time will allow you to look at costs carefully and help you budget appropriately. 

Machinery

While it might seem counterintuitive to spend money on machinery when you are looking to reduce expenditure, in the long-run, making sure your packaging machinery is up-to-date will save you money by making the packaging of your products more efficient, saving you time and money. If you can’t afford new machinery, invest in having the equipment you have inspected and ensure it is maintained, reducing the likelihood of unexpected expenses should something break down. 

Labelling

Often, companies add labels after the fact, getting them printed separately, which adds to the cost. Wherever you can, have any logos, instructions etc. printed directly onto the packaging. Also, unless it’s absolutely essential, try and stick to black and white printing, as opposed to colour, to keep costs low. 

Track prices

Prices for industrial packaging materials, from cardstock to PVC film and bulk bags, will fluctuate depending on demand and the quantity of packaging products you need. Keep a close eye on the market, so you can take advantage of price drops when they occur and buy in bulk where you can, to manage costs. 

Downgauge

While you need to make sure your products are stored and shipped safely, this doesn’t always mean you need to use a heavy gauge film for packaging. A lighter gauge may work just as well and will reduce costs, as these are cheaper to buy and cheaper to ship. 

Get started now

Not all of these solutions are quick wins. Some will take time, planning and changes to how your company operates. However, they are all worth it when it comes to helping to save your business money. The worst thing you can probably do is put off making the changes because they’ll take time or require an initial investment. Long-term, this will impact your company’s bottom line, and not for the better, so make the changes now and begin reaping the rewards.

2018-11-27T15:34:24+00:00 October 8th, 2018|Uncategorized|