Unpacking the True Cost of Packaging
Do you know much your packaging materials really cost? Many businesses miss out on cost-saving opportunities by placing their focus on unit price. We all look for value when making purchasing decisions, but when it comes to packaging supplies, the unit price doesn’t necessarily represent the total cost of the product.
Application Cost vs. Cost-per-Unit
As an example, let’s use two rolls of tape – Roll A which costs $5 and Roll B which costs $10. Roll A’s adhesive is weak, meaning multiple pieces of tape must be applied to achieve the same package security that Roll B achieves with a single piece of tape. This leads to an increase in product usage and labour required to package a single item, driving up the cost per application.
Budget void fill might seem like a good investment, but how much product might you waste to get the same level of protection a higher quality material offers? If items are damaged during shipping due to inferior packing materials, it will inevitably cost more than if you’d chosen a higher quality option. When you come across a product that’s priced below market average, consider the true material costs.
Unwrapping Hidden Costs
The previous example illustrates that packaging decisions require more consideration than just the upfront material costs. Stretch-wrapping is another example. Automatic stretch-wrappers are a significant investment, so hand wrapping pallets may seem like the smart economical move, especially in lower-volume facilities. However, over time, hand wrapping has potential financial implications. Automatic stretch wrappers maximize film stretching capacity and use less material to secure an equivalent load when compared to hand-wrapping.
Automatic wrappers also wrap in set patterns to ensure consistent tension and minimal product waste, maximizing film use from a single roll. Hand wrapping is inconsistent, and both tension and product usage can vary greatly from employee to employee. This can affect load stability and create excess product use. Automating certain packaging tasks not only reduces manual labour requirements and cost but optimizes product usage and improves sustainability by reducing material waste.
Update Packaging Practices
Beyond cost, habit and convenience are major drivers of purchasing decisions. New packaging material options and technologies offer both economical and environmental benefits. Unfortunately, habitual buying patterns can cause businesses to miss these opportunities. With cost containment and sustainability being key business priorities, packaging materials and processes should be re-evaluated regularly.
The Bunzl Industrial Packaging team can help you develop customized packaging solutions, implement preventative maintenance programs and provide custom engineering to ensure packaging efficiency and cost-effectiveness in every application. Ask us how to package it better.