Product packaging is an important element for most businesses. In fact, it is as important as the product itself. It’s a coordinated system of preparing goods for efficient, cost-effective, and safe movement through the entire supply chain. Your business must have the right packaging design and optimized inventory storage to maximize consumer value, profits, and sales.
To achieve perfect packaging, consider removing all unnecessary materials and steps in the packaging and shipping processes. You may have too much protective material encasing the product that will cost you more as well as slow down the processing and delivery times for customers.
With creative packaging, you get the opportunity to engage with your customers. Choose a design that increases product safety and security while minimizing the material used. The best packaging design concentrates on efficiency and resource reduction.
Optimizing Inventory Storage
Buying a bigger volume of packaging materials is a smart business move as it saves you money. But, buying bulk can get gobbled when you have to fork over extra costs for handling and storage of your extra inventory.
Generally, materials are big and bulky and often require plenty of floor space to store and maintain. Consider the various kinds of packaging materials you might have in store right now. How can you balance inventory and price?
The best approach is through vendor-maintained inventory or VMI. A VMI program operates on an inventory plan that your packaging partner operates. The vendor can reduce on-hand volumes to save storage space and replenish packaging just in time. With this program, you can save storage space, prevent overstocking, prevent stock-outs, and avoid interruptions of supplies.
Tips for Cost-Effective Packaging Procurement
Start by using knowing your packaging options available for your product. You can do this after gaining proper insights and detailed evaluation of your requirements. To make a reliable and sustainable choice, consider the latest technology, designs, and materials. But, if you don’t have the capacity and manpower to perform these tasks, you can consider outsourcing your packaging requirements to someone who can handle all your packaging needs.
Another way to optimize the packaging cost is to control warehousing and labor costs. Using the just-in-time supply strategy can easily save you on packaging costs. This means less storage times that will lead to cutting inventory costs. You will be provided with a customized solution that helps to make procurement a lot less taxing and eliminates the need to manage a huge inventory at your warehouse.