A large portion of projects we complete at BoldtSmith Packaging are related to packaging optimization. We often find new customers rarely have an optimized packaging system in place. That’s where we come in! Brainstorming, designing, sampling, testing and implementing optimized packaging solutions is our specialty!
But what does that mean? Is an optimized packaging design only taking into consideration packaging material cost? Absolutely not! Listed below are the top five variables we explore when creating and implementing an optimized packaging system.
Material Cost
This is the first variable we look at when exploring an optimization project. We need to know how much money is currently being spent on packaging. This will give us a gauge as to what potential opportunity exists. We often find companies leverage packaging manufacturers to determine what designs, material types and material strengths to use. Generic transit testing protocols are then used to test these packaging concepts. When a customer passes the generic test, the concept is implemented.
When BoldtSmith Packaging discovers this is the process, it is a RED FLAG that opportunity exists. Since we do not manufacture or sell packaging, we have no financial motivation to sell one material strength or type over another. We design the best possible packaging solution utilizing a material type and strength that is appropriate to our customers specific supply chain.
Labor Cost
In most scenario’s, we complete a visit to the location where our customers are packaging the product in question. We want to observe to see what the packing process is.
An example of a scenario we run into regarding high labor costs is a product that launched at low volume but the annual quantities grew dramatically and the packaging design was never updated. The initial packaging design may have included a complicated corrugated die-cut that provided great protection and made sense when the quantities were low. However, with the now higher quantities, there needs to be a drop-in foam solution that is molded to the contours of the product.
Freight Cost
Freight Cost
This is a great, often overlooked variable when optimizing packaging. We often discover hidden cost savings when optimizing freight. This is true for both domestically and globally manufactured product.
An example of a project we worked on was a company that was shipping automobile components from the United States to an overseas assembly plant. The current packaging did not allow the crating system to be double stacked in the ocean container. Our optimized solution allowed for double stacking which reduced the freight costs by 50% annually. Also included in this project was investigating the other cost variables in this blog which saved our customer 39% off their current packaging, labor and damage costs.
Damage Cost
Optimizing packaging does NOT have to mean increasing product damage. In fact, we create designs that often have the opposite effect. We are looking to drive packaging, freight and labor costs down while in parallel reducing product damage!
An interesting variable we have discovered in product damage projects is that often a customer will only have the “hard” damage costs such as the product cost.“Soft” cost variables such as expenses associated with handling the damage claim, re-shipment freight, re-shipment packaging, etc. are not included! These soft costs can often be 3x to 4x the hard damage costs! For example, if a customer is experiencing $100,000 dollars in hard damage costs per year, this could actually cost our customer $300,000 to $400,000 per year!
Follow the below link to learn more about increasing packaging quality while in parallel reducing damage costs in a recent blog post.
https://boldtsmithpackagingconsultants.com/do-you-have-opportunity-for-packaging-cost-reduction/
Customer Experience
An optimized package includes variables outside of cost savings or reducing damage, it also involves the customer experience.A product wrapped in bubble wrap and placed in a box of peanuts is not a recommended packing method!
In 2019, BoldtSmith Packaging completed over 500 packaging redesigns for customers looking for a better unboxing experience for e-commerce orders.
These are just a few of the variables we explore when optimizing our customer’s packaging. Reach out to learn how we can optimize your packaging!
