Many budget-minded e-commerce companies tend to focus on packaging, because they believe it is their greatest expense, and one they can easily control and manage. The truth is that if packaging is indeed a shipper’s greatest cost, they likely need a new packaging supplier as well as a better packaging design.
We have spent over 18 years working thousands of applications and projects, and helping our customers and clients identify and reduce their overall costs. In the vast majority of cases, they discover their two greatest expenses are actually:
- Shipping cost inbound, and outbound (to customers).
- 3PL costs for storage, and order picking and packing.
What makes e-commerce packaging, especially corrugated containers, unique is that they have the amazing potential to help reduce these two, usually higher expenses.
How can a better packaging design reduce shipping costs?
Shipping cost, whether it is an inbound pallet, or an outbound package, is always calculated based on weight and/or cubic inches. So, anything that will help you reduce weight and cubic inches is a win/win. Less expensive shipping costs, and less expensive packaging. Makes sense, right? See first “related post” below for more information on this.
Focusing on 3PL cost reduction.
Since most of our customers utilize a 3PL, contract packager, shipping warehouse or some other type of fulfillment company, they know there are two things that determine their cost: space for storage, and labor for order picking/packing.
The space required to store your packaging can be minimized much like the shipping cost above, by designing each unit as compact as possible. More stored boxes per pallet result in fewer pallets requiring handling, as well as rack and storage space. Per pallet cost is typically charged by the number of pallets received and how many are on the shelf at the end of each month. So, the more boxes we can place on a pallet, the fewer pallets your packaging will require, the lower your 3PL storage cost.
How does a package design reduce labor?
There are several factors that impact labor costs and one of them is box size. If you have visited a 3PL packaging area, you know there is never an abundance of floor space available. So, being able to provide packers the packaging they need, when they need it, is extremely important. When you receive a way oversized box for a small item from Staples, Amazon, or Target, it was not because the packer did not know what box size to use. Chances are, it was because the right size box was simply not available. In most situations, there is a team of supplies/product movers supporting the packers, so that labor cost has to be added to that of the individual packers. That may seem insignificant in terms of the overall cost, but it does add up.
Forming, erecting, packing, and sealing
Most 3PL’s will conduct time studies when developing pricing for a client. They know every fold, tab and insert consumes valuable time so they need to calculate each into their pricing. How any box is closed and secured is also important, whether it uses water activated paper or plastic carton sealing tape.
We are one of the leading producers of e-commerce packaging and we can tell you that not all boxes and inserts are created equal. We love corrugated inserts and dividers because they can be a tremendous time saver compared to other forms of display or protective packaging, such as foam or loose fill. However, some can be assembled and formed very quickly and easily, while others are painstakingly difficult and awkward, and others seemly are best formed with use of a third hand. Every insert we design has to pass an internal review and test to make sure it is not going to add time and labor.
We also design boxes with peel and seal adhesive closures, because they are fast, easy and most secure, and we can also add easy open perforations for your customers. In addition to custom die cut inserts we also design preassembled partitions, and dividers to minimize packaging time. Our newest solution is our mesh lock box, as detailed with photographs in the second related post below.
There is no limit to how far we will go to help you save time and money. It all begins with a no cost, no obligation review of your complete application. The more we know, the easier it is for us to minimize your expenses, including your 3PL time and cost. Call us at 630-551-1700 or contact us via this link.
Related Posts:
https://www.salazarpackaging.com/avoid-unexpected-hidden-packaging-costs/
https://www.salazarpackaging.com/mesh-lock-boxes-a-great-new-e-commerce-packaging-design/
https://www.salazarpackaging.com/six-things-your-may-not-know-about-packaging-partitions/
https://www.salazarpackaging.com/avoid-unexpected-hidden-packaging-costs/