Packaging Cost Reduction
Why a Packaging Cost Reduction Strategy is Important 
The packaging industry continues to evolve and emerging technologies keep pushing the boundaries of what is possible. Firms must always stay on high alert or risk being wedged aside by more adaptive competitors. Most advancements in the packaging industry from processes and materials to equipment are geared towards cost reduction through increased efficiency, a trend that highlights the importance of cost reduction as a form of not only cost savings but also as a way to achieve a sustainable long-term competitive advantage. No matter what role you play in the packaging arena or in any other industry, packaging is a necessity almost everywhere and thus everyone has the opportunity to net significant cost savings from optimizing packaging designs, manufacturing processes , and supply chain and operations. Special emphasis should also be made on tying everything together to develop an efficient cost effective packaging strategy that can evolve into a long term competitive advantage. 
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Packaging Redesign ​
When considering packaging costs reduction, one must look at the endeavor holistically and consider all of the different factors that may be impacting costs and efficiency. A common thought is that packaging costs are primarily associated with material costs, but this is not the case, yes the materials used to produce the packaging are an important component of the cost but so too is the:
  • Design
  • Size
  • Shape
  • And weight of the packaging
All of these attributes are important because they are key to determining how much will be paid for warehousing, shipping, and fulfillment. The overall cost impact of all of these attributes and dimensions must be taken into consideration in order to net costs savings and it is highly likely that a packaging redesign will yield substantial cost savings alone. But when looking to redesign packaging one must carefully consider various options. For example, flexible packaging may be able to replace rigid packaging in some instances but depending on factors such as package contents and transportation modes it may be better to stick to sturdier rigid packaging in order to avoid damaging goods during transit or spoilage issues. Flexible packaging is still a great option that can provide excellent costs savings due to its comparatively lighter weight, flexibility, versatility, and minimal space occupation. The key is to analyze your individual needs and circumstances to determine what will work best in the given situation. Because after all packaging needs change based on the industry and application, so the needs and circumstances of a firm in the medical packaging industry may be completely different from those of a firm in the CPG industry. 
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Packaging Supply Chain Optimization 
With that said having an adequate supply chain in place with the right suppliers, transporters, warehousing, and fulfillment partners could go a long way  towards your goal of packaging cost savings. Maybe you can perform some of these operations, or you may need a full-service supply chain partner, or it may be better to find individual partners that specialize in each step of the supply chain. It may also be worthwhile to get in touch with partners that offer cutting edge solutions based on algorithms and historical data. Whatever the case, optimizing your supply chain will involve a deep analysis of all of your operations and logistics. This may include:
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  • Comparing Material Suppliers: Are their materials of suitable quality? Material costs? Do you need multiple vendors? Is it better to stick to one vendor? Are they able to adapt to your operations model?
 
  • Comparing Transporters / Logistics Services: Can they move freight quickly and efficiently? Can they provide operational efficiencies to mitigate costs? Are they flexible enough to adapt to your shipping schedules? Are they able to adapt to your operations model? 
 
  • Finding Warehousing and Fulfillment Partners: Where are they located? Are they close to your customers/clients? Do they have adequate experience? What is their warehouse environment like? How do they handle/ process goods?

When considering these various options its important to work with an industry expert who knows the ins and outs of the business. Packaging experts at BHC associates have decades of experience in the industry and they have developed deep insights and intimate knowledge in packaging supply chain solutions.
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Packaging Line Optimization Through Automation
Optimizing packaging line processes is just as important in a cost reduction strategy as packaging redesigns or supply chain optimizations. There are several ways to optimize your packaging lines such as zoning your manufacturing plant to improve efficiency or finding ways to speed up certain procedures or eliminate unnecessary steps are also great ways to improve packing line efficiency. However, over the last several years robotics and automation have gained recognition as some of the most effective tools for manufacturing optimization. Automating processes on your packaging line can have several benefits including:
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  • Higher outputs 
  • Increased workplace safety 
  • higher quality products
  • Increased productivity
  • Cost reduction 

The key to unlocking all the benefits of automation is to choose the appropriate technology and to deploy it in the most suitable place in your overall process. For example, the most common automated technology in manufacturing are robotic arms which are best at performing repetitive high-volume tasks, therefore they would be better utilized on tasks that require speed and accuracy such as filling, sealing, labeling, Etc. However, implementing automation technology will require the expertise of a packaging automation expert who has extensive knowledge and experience in deploying robotic automation solutions for packaging manufacturing and packaging lines. Our expert packaging team can deploy various robotic automation technologies to fit your needs. Learn more about our automation services.

Tie it all Together ​
Packaging is a constant in the costs equation and thus it is also a component that can yield long term consistent savings through a holistic packaging cost reduction strategy. Employing one solution may be beneficial , however, the biggest savings come from streamlining your entire packing operations by building a customized strategy that meets all of your needs at each step. Implementing such strategy can lead to a long term competitive advantage, however, given the complexity of packaging supply chains, packaging redesigns, and production processes, putting a holistic strategy into effect and having it flow seamlessly is a difficult task. When dealing with such a complex endeavor be sure to request assistance from experts in the packaging industry. At BHC Associates, we have the necessary expertise to cut to the center of what you really need and get you the savings you are looking for.
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