Atlas Container Knowledge Center

10 Ways to Save Money on Packaging Costs

Posted by Peter Centenari on Feb 14, 2017 11:50:01 AM


When companies look to reduce their costs, they may look to product design or other factors. Few look towards refining their packaging process


Packaging has many functions. It keeps a product contained, labels a product, and streamlines shipping and handling. The primary function of packaging is to protect the product. Packaging must withstand the demands of storage and transportation to protect the product within. With all of these demands, it is important that packaging is designed optimally and not in excess.

There may be hidden cost saving potential in your packaging. Packaging supplies can make or break your growth margin. Why not package smart?


Listed below are 10 tips to reduce your packaging costs


  • Packaging Evaluation

All boxes are not created equal. There are various materials, sizes and shapes that must be taken into account when choosing packaging materials. Putting time upfront to prioritize research and development to evaluate which packaging strategy works best for your company will ensure the best quality in a cost effective manner.


  • Meet Product Requirements

Every product’s packaging requirements are different. Be sure to check your requirements are met, and assess whether a smaller box or lighter weight cardboard can be used in place of your current practices. Sometimes a small change to the product’s primary packaging can drastically reduce overall supply chain costs.


  • Seek Optimal Box Size

Packing requirements need less than 2 inches of dead space between the product and box to be properly protected. Make sure you size your boxes correctly to eliminate this cost of excess dead space. In addition make sure you fit your product inside the packaging to its optimum shape. Sometimes just rotating the product’s position can allow for smaller packaging and more cost savings!


  • Eliminate Excess Labels and Packaging

Assess whether the extra peanuts, bubble wrap, foam and cardboard packaging are necessary to make your product travel safe. If your product requires extra protection, consider the most cost effective means for more supportive packaging. In addition, avoid applying excess labeling to your product.  Label your product however necessary, and not more. Every label can add up.


  • Buy Smart

Buy in small batches if you want to keep your inventory lean. This will mitigate the risk of excess inventory if your company plans to rebrand or discontinue a product. Vice versa, buy in bulk if you have the capacity. 


  • Redesign

Redesign of packaging can save in materials and labor costs. Designing a box with less taping reduces labor time and cost.  The box itself might cost more, but the labor cost is dropping for an overall decrease in price. In addition, too much void space in the box can cost extra. Reducing box size when necessary can reduce default price.


  • Go Green

Consumers are increasingly passionate about sustainability and the environment, and are more apt to support environmentally friendly companies.

Reduce Waste by using recycled packaging. Recycled packaging is usually less expensive than using new materials. Higher quality recycled packaging consists of linerboard combining recycled and new material.

Second, reuse where possible. With careful planning, many packaging supplies can be reused. Third, design packaging for easy disassemble or collapse to recycle the packaging materials with ease.


  • Pay Attention to Price Changes

Pay attention to prices on packaging materials. Prices can fluctuate, so it’s important to pay attention to the market and when best to buy. Monitor your supplier to ensure they are charging you the appropriate amount according to price fluctuations.  


  • Look for a Full Service Supplier

Be sure to choose a supplier who is experienced and reliable. An expert supplier can save you time and money! Your supplier should be the expert in designing cost effective packaging to your needs.  Atlas Container is a great example of a full service provider. We perform packaging audits to determine how best to process every customers’ orders. Atlas knows the packaging market and how best to utilize and design packaging materials for best quality and the most cost effective manner.


  • Always Be Testing

Think about how your product will be shipped and handled. Will your product be stored for 6 weeks in a container before use? Will shipping encounter harsh temperatures? Proper testing and continuous improvements to enhance performance will save you money in the long run and improve the quality of your service. But make sure not to go too far! Cutting costs does not mean cutting quality. Make sure your actions protect your products in transport and beyond. Be sure to test, test, test to ensure your packaging protects your product!


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