Streamline packaging to save space

Posted on Friday 1 January 2010

As consumer shopping habits change, the need for warehouses is growing and space is becoming increasingly valuable. Revamping your packaging could help you maximise space, says Antalis.

The proportion of warehouse space taken up by high-street and online retailers more than doubled in the four years up to 2015 and now accounts for 40% of the market.

This poses a challenge for warehouse managers who need to simultaneously optimise space while also ensuring adequate inventory and packaging supplies to meet ever-changing customer demand. Indeed, for those without in-depth knowledge of the packaging sector, allocating large volumes of storage space to packaging supplies may seem unavoidable.

However, many are unaware that there are a variety of different ways that they could reduce storage costs and optimise their space while simultaneously reducing waste.

One of the most common factors contributing to a warehouse running out of space is the purchase of larger-than-necessary quantities to reduce per-unit costs. Yet these savings can be cancelled out by the cost of storage and the waste that occurs when not all of the materials are used. In addition, needing to store excessive packaging materials can also create additional stock-keeping work.

Working with a well-connected packaging solutions specialist can make it possible to order smaller volumes of both standard and bespoke packaging items as they are needed. Because they have long-term relationships with packaging manufacturers and suppliers, they can obtain bulk discounts that they pass on to the customer who can buy from them in smaller quantities.

Moreover, some providers may even be able to offer a stock holding service, making it possible to place bulk orders without needing to store excess stock until it is actually needed. This also means that, when launching new products only as much packaging stock as is needed at the outset has to be ordered. As a result, if a new product doesn’t sell as fast as anticipated, the business won’t be stuck with hundreds of unused bespoke cartons. 

‘One size fits all’ packaging

Although it is one of the primary goals of every business, business growth is also a common reason for depleted warehouse space. When it comes to packaging, many companies make the mistake of assuming that every new product requires a new kind of packaging.

By introducing a solution such as an automated void reduction system, however, it can be possible to reduce the range of cartons that need to be kept in stock, as well as reducing the need for void-fill. These systems involve the use of identical base trays for a wide range of products, with any unused space being removed by creasing and folding in the carton’s flaps to eliminate it. 

Protective packaging

Historically, the need to store large quantities of bulky protective packaging such as bubble wrap and void-fill such as polystyrene chips has meant huge sections of warehouse space being given over to their storage. Increasingly, however, businesses are opting for solutions that enable them to ‘form’ their own protective packaging on site.

On-demand air cushioning systems are increasingly in demand. By replacing pre-formed bubble wrap, these enable substantial reductions in storage costs. Paper-based void fill systems are another example of how alternative void-fill can streamline protective packaging. With one A4-sized pack of paper able to perform the same protective function as three large bags of polystyrene chips, it’s not hard to see why this kind of solution is rapidly growing in popularity.

Some companies are opting for chemical-based systems that make it possible for protective foam cushioning to be created as it is needed. Doing away with the need to pre-order and store bespoke foam cushioning, these systems use a chemical reaction to output moulded protective foam in as little as 40 seconds. 

In many cases, the cost of packaging is calculated simply by considering what it costs to purchase and have it delivered. However, storing excessive packaging materials and using more types than is necessary can eat into a business’ overall profit margins. This is why it is important to regularly review your business’ packaging needs with a view to rationalising your operations.

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