Improving profitability with smarter warehouse packaging
20/02/2020
Improving profitability with smarter warehouse packaging

Warehouse packaging is an essential part of the process of storing and shipping goods today. It can provide protection for goods in transit and may have an essential role to play in the way that storage is organised on your premises. However, many warehouses tend to fall short when it comes to optimising packaging options to create a smarter warehouse environment. In fact, the choices that you make about warehouse packaging could even be costing your business money. If you want to improve profits there are some key considerations to bear in mind.
 
Review the “one size fits all” approach
 
In order to save on the cost of packaging many warehouse buy several options in bulk and use these across the board for every type of product. There are a number of disadvantages to doing this, including ineffective use of space within the warehouse and a high volume of wasted packaging if one particular size goes repeatedly unused. It’s worth reviewing the way you invest in packaging if you’re looking to boost profitability in your warehouse. Are large numbers of boxes never used? Are you constantly short on space? A good starting point is to identify the average shipment – i.e. the size of the shipments that are the most popular, including how many items are in each one. Instead of opting for one size fits all, look at the boxes or envelopes that you actually need to cater to your business’ average shipment size.
 
Make sure your packaging works with how you’re billed
 
Different businesses bill in different ways for shipments today and this could be eating into your profits. For example, if overall packaging size is now being factored into the way you’re billed and you’re using big, bulky boxes – often with a lot of empty space inside – then this could mean billing is higher than it needs to be. Establish if you’re being billed on the basis of size (as opposed to on the basis of weight) then simply switch to smaller, more appropriate boxes to cut cost and considerably improve profitability.
 
Create the right infrastructure
 
In addition to the packaging itself it’s well worth reviewing the way that items are stored when it comes to increasing profitability. For example, what are you using to store items in your warehouse – wooden pallets? Metal shelves? A comprehensive review of your warehouse infrastructure should look at how appropriate this is for the products that you’re handling. If you’re seeing high rates of damage for items in the warehouse, for example, then you could save money by switching to more secure storage. If you’re always running out of room and this is limiting the business, storage that better optimises the space that you have available could help increase the volume of products you can handle and deliver a profit increase as a result.
 
Packaging and storage options may seem insignificant but they can have a big impact on how effective your warehouse is, as well as the profits that you’re able to generate.
 

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