As companies reevaluate their overall strategies, they’ll need new methods to optimize costs throughout their supply chains, which could uncover opportunities for packaging optimizations.
Optimizing packaging can lead to immediate savings in transportation costs through increasing product density per truck or sea container. Cost reduction methods such as right-sizing and right-weighting can help organizations slash costs and improve profitability.
“Instead of looking for nickel-and-dime savings on box prices, an optimized packaging program will generate greater savings,” says Johan Månsson, European Sales Manager at Trillora. “Especially now, with the potential for new tariffs and other supply chain disruptions.”
Learn more about cost-reduction methods in packaging and how they can save your organization money.
Right-sizing and right-weighting are two key processes to cut costs in packaging. Right-sizing ensures the optimal size of packaging for the product and supply chain, while protecting the product. Right-weighting optimizes the materials used in the packaging so the product is still protected while reducing overall weight. Both processes offer cost reduction, but there are other benefits.
Both right-sizing and right-weighting reduce packaging material, which impacts sustainability. Even designing small amounts of packing out of your program can make a big impact overall, along with introducing savings and efficiencies in other areas.
Right-sizing and right-weighting packaging can reduce packaging costs throughout the entire supply chain, which also means reduced transportation costs, increased space in distribution centers and reduced product damage. The cost benefits of right-sizing and right-weighting provide a ripple effect through organizations, with benefits that affect everything from supply chains to the end user.
Specifically, making changes to packaging sizes and weights can help:
At a time when freight and shipping costs are still volatile, one key way to save money is by optimizing packaging. The savings we provide by optimized packaging might free up cash flow for companies that are coming out of a difficult few years and trying to keep up with consumer demand.
A packaging review or audit conducted by Trillora is a two-step process. Our audit provides the following functions:
To conduct this review, organizations will need to provide basic information such as annual product volumes, the number of products per case, and the number of cases per truck or container. After the audit, we provide honest feedback to the customer and advise whether or not we can help. If we identify potential savings, the timing of implementing those changes depends on the complexity of the project.
To see what kinds of information we collect for a packaging audit, review this Packaging and Supply Chain Audit Questionnaire.
If your organization is ready, contact us to request a packaging and supply chain review to discover cost-saving opportunities.