How Packaging Affects Your Logistics Costs

Optimising how your business uses packaging is an example of how small changes can have a big impact on your bottom line. 

With the logistics industry feeling the revenue squeeze from inflation and exploding fuel prices, identifying new out-of-the box ways to cut costs has become a priority.

Analysing and optimising how your business uses packaging is an example of how small changes can have a big impact on your bottom line. 

The actual costs of packaging

We’ve all experienced the displeasure of receiving a package swallowed by excessive packaging: a small product sent in a huge box or wrapped in endless paper or bubble wrap. 

The one-size-fits all policy is behind this excess, and the belief that it’s cost-effective. Buying materials in bulk may work for logistics companies with limitless space and resources. For smaller companies, however, these things eat up valuable warehouse storage space and affect the bottom line. 

Not only do you have the additional outlay for extra packing materials, it also affects the total volume of goods that can be transported in a single shipment; when a product is fitted in a suitable box and the wrapping materials are kept to a minimum, it lightens the transport load. 

Utilising flexible protective packages like bags and pouches cuts expenses and saves crucial warehouse and transport space. Instead of using bulky bubble wrap, consider switching to a bubble-on-demand option, which inflates the material as required, and also dramatically reduces your storage footprint. There are also similar paper-based options that work in the same way. 

Environmental and customer implications 

The environmental ramifications will of course be reduced if you optimise your packaging, as will the customer frustration at receiving a package drowning in materials. 

As more and more customers are making their e-commerce choices based on the ethical and sustainable working methods of the companies from which they purchase their products, efficient packaging can enhance the perception your customers have of your business. 

They’ll take note of how you limit waste and strive to minimise your climatic footprint. 

The benefits of packaging audits 

Keeping a proactive mindset, continually analysing your packaging processes ensures that you’re working as efficiently as possible. One idea is to complete a packaging audit every 6 months to take stock of your supplies and methodologies. 

It can identify improvements you can make, and lead to a reduction in the amount of materials you use and store onsite, releasing valuable warehouse space.

With the uncertainty of the current economy drastically affecting operational costs, these small packaging and warehouse adjustments could be just what you need to protect your revenue flow. 

Partnering with Sprint Logistics 

Sprint Logistics, a global expert in end-to-end supply chain processes, provides cost-effective logistics solutions to businesses of all sizes, in any industry. We can help you navigate today’s economic challenges, keeping your operations running smoothly and cost-effectively. 

Sprint offers a range of services such as warehousing and our pick and pack service, where we automatically retrieve orders from your choice of location, pick and pack them with an accuracy of 99.9%, and keep you and your customers updated in real-time.

Contact us today and learn how we can support your business.