Managing packaging costs during inflation requires more than just searching for a cheaper box; it requires a shift in strategy. At Wertheimer Box, we’re here to help you.
We’ll work with you to apply 5 actionable strategies to protect your bottom line.
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Inflation Strategy 1: Consolidate and Create Efficiencies.
While we can’t control rising fuel or paper costs that drive up corrugated board prices during times of inflation, we can conduct a plant audit or a warehouse review.
Along with your account manager, our structural designers can help you determine whether you’re using the optimal number of box sizes and box types to save you money.
Thinking only of cost per unit is a trap.
A “cheaper” box can cost more in the long run, for example, if it’s:
- On a slower assembly line
- Requires excessive packing material
- Has a high failure or product return rate
Instead, shift your focus from cost per unit to the total cost of ownership (TCO).
Read how we collaborated with a food producer to build a better box that:
- Reduced the number of shipper sizes
- Decreased setup times
- Cut waste
Additionally, products can be shipped and displayed in the same corrugated container. Many types of displays can ship products. At the same time, watch out for these potential display problems.
Packaging Cost Strategy 1 in Action:
Talk to your account manager to arrange for a structural packaging designer to review your packaging operations today.
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Inflation Strategy 2: Right-Size Your Corrugated Board Grade and Thickness.
One “standard” corrugated board grade or thickness does not fit all. We can determine whether your products are “over-packaged.”
At Wertheimer Box, our goal is to use board grades and thicknesses that are just right for the products you’re shipping.
Our goal is to help you ensure maximum product protection (strength) with minimal board-grade, thickness, and void space, saving you money. Often, we combine more than one board grade or thickness to achieve that goal.
You don’t need to pay for more strength than you need.
Moreover, a lighter board grade or thickness can slash your freight and fuel charges—two key drivers of inflation.
Packaging Cost Strategy 2 in Action:
Talk to your account manager today to request a packaging review.
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Inflation Strategy 3: Optimize Your Pallet Configuration.
Various transportation companies and retailers require different pallet configurations.
This is why your choice of trucking company is one of 5 factors structural designers like to know before designing your packaging.
At the same time, you don’t need to pay for air in a too-short configuration or for transportation of larger-size or heavier boxes.
Sometimes, a larger quantity of smaller-volume boxes is less expensive to ship and facilitates the shipping of more products per freight load.
Again, thinking only of cost per box unit is a trap.
A larger box may cost you more in:
- Freight costs
- Packaging void fill
- Empty truck space you could have used to ship more products
Packaging Cost Strategy 3 in Action:
Discuss your pallet configuration with your account manager and a member of our structural design team. Can you decrease your freight charges?
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Inflation Strategy 4: Buy Packaging Inventory Now to Lock in Prices.
The recently reported inflation rates have accelerated to 3.8%. Paper costs are increasing. Can you buy more corrugated boxes now to lock in lower corrugated board prices?
If you don’t have space for inventory and you purchase large box quantities, consider our vendor-managed inventory, which can ensure lower board costs now and just-in-time, or JIT, availability later.
Packaging Cost Strategy 4 in Action:
Buy packaging now, before inflation squeezes your margins.
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Inflation Strategy 5: Request Packaging Assembly Efficiencies.
The labor time required to fold, tape, and pack a box may exceed the cost of a new packaging design or type.
Would a pre-glued tray meet your needs and reduce your overall packaging costs? How about a snap or 1-2-3 bottom container?
Many box types are available. However, avoid these 15 packaging mistakes, such as number 4: “relying on the same old packaging” and number 9: “failing to ask for a packaging review.”
Packaging Cost Strategy 5 in Action:
Ask your account manager about packaging options that may require less labor, tape, or assembly time.
Conclusion
Thinking of packaging as a cost-per-unit commodity can be an expensive trap that affects your bottom line. High-quality packaging considers the overall cost of putting the packaging to work for you.
A packaging partner helps you consider your margins and total cost:
- Creating efficiencies and consolidating packaging options for machinery and humans.
- Right-sizing board grades and thicknesses.
- Optimizing pallet configurations.
- Warehousing packaging for JIT delivery.
- Requesting a packaging review for your facility.
Contact Your Account Manager Today.
We’re in this together.
Doug Wertheimer
