Packaging Costs Too high? A Packaging Assessment Will Help

Corrugated prices are tied to material costs, with the paper index as the main driver for the increases that independent box plants are forced to pass on to their customers. Anytime there is a price increase for corrugated packaging, it is a direct result of a paper price increase. 

Paper mills have indicated another price increase in kraft paper is coming. Kraft paper is the primary material used to make corrugated board. Companies that rely on corrugated and paperboard products to transport their products safely have seen their budgets negatively impacted by the price increases. One way to combat the increase is by looking at areas for savings within your packaging supply chain. A packaging assessment can help you do that. 

What is a Packaging Assessment?

Tyoga Container can perform a packaging assessment to review your packaging materials and how they move through the supply chain. Some of the areas to be investigated include:

• Physical requirements
• Materials
• Consolidation
• Handling and transportation

Physical Requirements

Oversized, odd-shaped, fragile, cold chain, and other characteristics impact the type of packaging required. For example, corrugated is sensitive to temperature and humidity and loses strength when exposed over time, so you may need a moisture barrier coating if your packaging is exposed to freezing and thawing conditions. Or a highly polished product will need to be packaged so the corrugated doesn’t scratch its surface. Tyoga engineers can look at all the physical requirements for your product and design the most cost-efficient solution. 

Materials 

Finding the materials sweet spot is one way to save money. Product damage will cost you in returns and reputation damage but overpackaging to compensate will have excess material costs. Tyoga engineers can optimize your packaging design to find the perfect balance between product protection and material use. Light weighting and size reductions of your packaging can bring savings in freight costs as well. It also reduces your carbon footprint, which is a win for everyone! 

Consolidation 

Having a different packaging configuration for each product can be a nightmare for your supply chain, particularly if you have hundreds of products. By consolidating packaging SKUs for similar products, you see costs benefit from purchasing at scale and less time spent managing the SKUs.

Although some of your customers may have specific requests for case counts, for those where there is leeway, Tyoga Engineers can determine if increasing the case count can drive savings from material reduction and optimized logistics. You may be able to fit more product on a pallet and, therefore, more per truckload.

Handling and Transportation

How your products are handled and transported will impact the design of the packaging. Do you have e-commerce products shipped directly to the consumer or unitized products shipped to retailers or other businesses? A loose package may get bumped around or dropped during transport to the consumer, so this must be accounted for. If your product is palletized, efficient use of cargo units must be considered. Proper palletization can save you money. 

Fully Integrated Services

Despite the current price increases in the industry, there are still opportunities for you to recoup the costs or even save money. We will look for savings for you through our packaging assessment. There may be additional opportunities for significant savings by taking advantage of our fully integrated services, including custom design from the pallet or full unit to the whole truck or rail car.