There is some much focus around determining how and why product damage is occurring during shipping that often packaging damage is overlooked. The outside of the package is the first thing a customer notices before grabbing the product. The decision as to whether purchase this product or the competitor’s could be determined by the state of the packaging.
Packages come in all shapes, sizes and structures. A cereal box could have a dented corner from a drop, a can with a partially torn label from the assembly line or a clamshell with scratches on the plastic from rubbing against the master carton during shipping. None of these examples have product damage but aesthetic packaging issues.
We recently completed a project for a customer experiencing over $1,000,000 in damage costs per year. Upon diving into the data and gathering pictures of the damage, we discovered that 85% of the time there was no product damage, only packaging damage. This particular product was shipped in a master carton with EPS foam end caps. Customers would receive the product and see the box had dented corners from being dropped or cracked foam end caps. The product was without damage and operated correctly but the perception by the customer was the product could be damaged based on the condition of the packaging.
We provided multiple solutions to fix this issue, the solutions are listed below.
We were able to optimize the packaging design to reduce the package size, reducing the packaging costs and fitting more product on a pallet and more pallets in a 53’ trailer. Our optimized design resulted in a $400,000 cost savings annually in material and freight with a $900,000 reduction in damage claims per year.
Interested in learning more? Reach out to BoldtSmith Packaging on how we can optimize your packaging!