In the last few weeks at BoldtSmith Packaging, we have had a large increase in the number of customers reaching out to us to reduce their packaging and freight costs. Domestic and overseas product manufacturers are feeling the pressures from the decreases in sales due to the Coronavirus. This is a great time to evaluate if there is opportunity to reduce the costs associated with packaging and freight!
Reducing packaging and freight costs means more margin in our customers bottom line. Often our customers ask if we reduce our packaging costs, does that mean the quality of our packaging goes down or our product damage costs go up? Absolutely not!
Over the last 7 years, BoldtSmith Packaging has strived to create smart packaging solutions that will reduce packaging and freight costs while still maintaining or increasing the quality! We recommend our customers to include cross functional teams to review our concepts from departments such as engineering, quality, production and marketing. Our goal is to balance the costs and perception associated with packaging material, labor, freight, customer experience, etc.
Packaging is a term that can be applied to a lot of different materials. With the variety of customers we work with, packaging for one company might mean wooden crates for automobile components and to another foam cushioning for a microwave.
What does packaging mean to your company?
A few of the common packaging materials we optimize are outlined below:
- Corrugated Boxes
- Expendable Shipping Crates
- Returnable Shipping Crates
- Stretch Film
These packaging materials are used in a large variety of industries in the consumer and industrial packaged good categories such as food, building materials, furniture, children’s toys, automobile components, etc.
Stretch Film Cost Reduction Case Study
Recently, a customer reached out to us on how we can reduce the costs associated with their stretch film usage. The customer had 21 plants spread out throughout the United States with all the plants using different types of stretch films, gauges, wrap patterns and tightness levels. The goals of the project are outlined below:
- Determine the best possible film type, gauge, wrap pattern and tightness level
- Roll the selected concept out through all 21 plants
After completing visits to all 21 plants documenting the current material and process, we brainstormed and completed testing on 60+ variables determining the best possible film type, gauge, wrap pattern and tightness. These 60+ variables were narrowed down to 3 solutions that balanced packaging performance and packaging cost.
In parallel to standardizing the stretch film material and process, we also included two other packaging components in our study. These two components were corrugated and hexacomb. Optimizing these three packaging materials will reduce our customer’s packaging costs by $1.2 million dollars annually. Not only is this a great cost reduction, we were able to increase the stretch film containment by up to 55%! This is a great example of a project that not only decreases packaging costs but also increases packaging performance! Reducing packaging costs does NOT have to mean sacrificing packaging quality or performance!
BoldtSmith Packaging Operations During Coronavirus
Interested in finding out if BoldtSmith Packaging could reduce your packaging and freight costs? Our typical process would be to travel to your location to see how the product is being packed, stored, handled, etc. During this time of travel restrictions, we are now encouraging customers to send product to our warehouse located in Waukesha, Wisconsin. From there, our team of packaging engineer’s will be able to complete new packaging designs, sample and transit test!
Reach out to BoldtSmith Packaging to learn how we can locate and implement packaging cost savings! We look forward to hearing from you.