When managing a manufacturing operation, cost control is fundamental to success. However, excessive costs often occur as a result of unnecessary expenses and lengthy processes.
To eliminate these inefficiencies and reduce costs, you need to identify those factors that contribute to high costs. Then, consider ways to improve those areas.
One way to reduce costs? Implement better packaging.
Why does better packaging matter in manufacturing?
Better packaging matters to balance cost and efficiency in manufacturing because it can not only protect goods from damage but also reduce manufacturing costs. For example, the use of more protective materials, such as bubble wrap, can reduce the need for costly repairs or replacements for damaged items.
Additionally, the use of lighter materials can reduce the amount of fuel needed for shipping products, resulting in lower shipping costs.
Furthermore, better packaging can streamline the production process, as the right materials can provide a more secure hold on the product, helping to reduce the need for additional labor to protect it.
Finally, properly designed and implemented packaging can help to reduce the amount of storage space required in a factory, resulting in a more efficient use of resources.
Three areas affect manufacturing packaging costs:
The type of material used to create the packaging, the method used to manufacture the packaging, and the location of the manufacturing company all affect manufacturing packaging costs.
Material choice affects manufacturing packaging costs
The material used to create packaging impacts manufacturing packaging costs. Some materials are less costly than others. Some are more durable than others. Certain materials also may affect the durability and life of the product that is packaged.
Plastic materials, for example, are generally less expensive than steel. Canvas material is less expensive than plastic, and steel cans are more durable than plastic bottles, so the cost differential is justified by performance.
Method of manufacturing affects manufacturing packaging costs
How a material is converted into a finished product’s packaging determines the manufacturing packaging costs. In other words, the method used to create the packaging affects the costs.
Die cut packaging, for example, is a relatively inexpensive method of manufacturing packaging. Conversely, molding is a more expensive method. The more complicated the shape of the packaging, the higher the manufacturing costs will be.
Location of manufacturer affects manufacturing packaging costs
The location of the manufacturing company that creates the packaging can have a tremendous impact on manufacturers.
This is because the geographical location of the manufacturing company affects the cost of shipping, which in turn affects the overall cost of packaging.
Additionally, it can influence the availability of materials, such as cardboard and paper, because of local sourcing.
Furthermore, the proximity of the manufacturing company to the end user has an effect on delivery times, which can be a major factor in customer satisfaction.
Finally, the area’s economic climate can also affect the cost of labor, which could lead to higher or lower costs for packaging.
These factors are important to consider in packaging matters for manufacturers. Ultimately, manufacturers should do their research to find the most suitable location.
Optimizing packaging costs and efficiency
Optimizing packaging costs and efficiency is a key goal for most manufacturers.
There are a few ways to achieve this. Knowing what goes into the packaging and what is needed from a safety and regulatory standpoint will help you determine what you need.
You should also review how the product is shipped and who transports it. Using a method that’s expensive to transport may cost your company more in the end. Who handles the shipping also matters. You may be able to negotiate a better rate from a shipping company than you are currently receiving.
Also, consider if the packaging meets your company’s requirements for durability, sustainability, and cost. There are materials and technologies available that provide more durability and longevity for less money. Using them will save you money in the long run.
Packaging for the Environment
While manufacturers have long been concerned about the environment, packaging technologies have advanced to where companies are able to reduce their impact on the Earth’s resources.
Through innovative materials and recyclability, for instance, manufacturers can provide customers with sustainable packaging that meets their needs and meets sustainability goals.
Packaging matters for manufacturers - the ultimate impact on the end consumer
The packaging is the last physical connection between the manufacturer and the customer. The quality, cost, and delivery of this physical connection will have a direct impact on the end consumer.
From a consumer standpoint, packaging provides physical protection and peace of mind. The packaging should provide a barrier between the product and any potential contaminants, as well as protect the product from damage during shipping and storage.
As a manufacturer, you know that delivering superior products to your customers is critical to your long-term success. The quality of the packaging you used to ship and store your products has a direct impact on the quality of those products delivered—or fail to deliver—to your customers.
By taking proactive steps to optimize packaging costs and efficiency, manufacturers can not only save money but also improve customer satisfaction.
To learn about how Radwell can support your manufacturing operation