Packaging Optimization begins with a holistic approach to identify product damage and cost reduction opportunities. Designing and implementing optimized packaging designs is a data driven process that requires balancing the key measurable variables. These variables include packaging material costs, freight, labor, product damage, etc.
Packaging Cost Reduction
Creating a financial analysis of your current packaging capturing key variables such as material, freight and labor costs gives us the data to determine what opportunity exists to reduce costs. If your annual packaging spend is $2 million and our optimized packaging designs reduce your costs by 30%, that is $600,000 in cost savings!
There is a huge variety of packaging materials and endless packaging designs, is your current packaging the best it could possibly be?
Product Damage Reduction
We find out what your product damage is costing you annually and create an optimized packaging solution that balances damage cost with packaging costs. To determine this, we will gather the hard and soft costs associated with your product damage. Hard costs include product, freight and labor costs associated with re-shipping product due to damage. Soft costs include unsatisfied customers that results in loss of sales, poor online reviews, etc.
Utilizing your true cost of product damage, we will then create multiple packaging designs that will drive down your product damage while balancing packaging material, freight and labor costs.
Freight Cost Reduction
Maximizing your freight efficiency with optimized packaging designs results in higher margins and increased customer satisfaction. Is your current packaging designed to maximize the number of products per pallet and the number of pallets per truck? An optimized packaging solution uses the pallet size as a fixed variable
Our industry experts review the number of products that fit on a pallet and the number of pallets that fit on a specific truck or ocean container.
Packaging Optimization Process
Common Packaging Optimization Questions
Product Damage Reduction
- How was the packaging tested prior to launch? Is the testing representative of what actually happens during shipping?
- What are your current damage rates for retail and e-commerce packaging?
- What is damage costing you annually?
- Where is the damage occurring?
- Why is the damage occurring?
- What packaging changes need to take place to reduce packaging damage?
Packaging Material Cost Reduction
- What measures have you taken to reduce packaging costs?
- How did you determine the material strength for your current packaging?
- What alternate packaging designs have been explored?
- How can we document the cost reduction to internal leadership?
Freight Cost Reduction
- Are you optimizing the number of products that fit on a pallet?
- What are your dimensional weight charges from your small parcel carrier?
- How many pallets of product are fitting on a truck or ocean container?
- What other methods of unitizing product can be explored? Slipsheet? Pallet?
Labor Cost Reduction
- How long does it take to pack your current packaging?
- Is packaging a choke point in your current manufacturing process?
Frequently Asked Questions
What does packaging optimization mean?
Packaging optimization is designing a package that balances the costs associated with product damage and packaging material, freight and labor costs.
How much money can we save on packaging?
Our goal is to provide a minimum of a 3x return on investment to our customer from our project cost.
How do I know if there is opportunity to optimize our packaging?
BoldtSmith Packaging will complete an onsite visit to your manufacturing location or distribution center to review the current packaging methods. We will then provide a review of the potential for damage reduction and packaging material, freight and labor reduction.