How businesses package their goods matters a lot to the customers buying their products, but can it also have a cost-effective impact before these items reach retail shelves? By developing more economic product packaging solutions, businesses can benefit from more affordable logistical opportunities.
1. Reduced shipping cost per unit
Companies have been worried about shipping costs for some time now. Peerless Research Group found nearly 8 out of every 10 businesses are actively searching for ways to cut back on their shipping costs. Over the last few years, many major third-party logistics providers have switched from charging their clients according to unit weight to assessing dimensional, or volumetric, weight. Essentially, the bigger the box, the bigger the cost, regardless of the empty space therein. So why not optimize packaging down to the bare necessities and save on every product shipped?
2. Increased shipping potential per pallet
Businesses pay for every pallet of goods placed on the back of a truck or loaded onto a plane. That said, when these companies invest in a high quality structural design that not only reduces packaging volume but is also more conducive to stacking, they ship more units per pallet. By maximizing the number of SKUs per shipment, businesses can move more products at a fraction of the cost.
3. Decreased reliance on warehouse vacancy
Shelf space is one of the logistics industry's top commodities, and it's currently undergoing a shortage. According to Cushman & Wakefield, with inventory on the rise, U.S. warehouse vacancy rates have dipped into the single digits. In turn, businesses scaling up shipments will have to shell out more money than ever before to acquire a little extra room. However, an intelligent, space-conscious packaging redesign could help businesses make the most out of what they already have.