Packaging represents a significant cost item for any company that produces and ships physical goods. Between materials, printing, storage and logistics, packaging costs can account for 10 to 40% of the total product cost. But it is possible to reduce packaging costs without sacrificing quality and image.
1. Optimise Dimensions
The primary source of waste in packaging is empty space. Oversized boxes mean more cardboard, more filler material, more shipping volume and higher transport costs. The solution is to produce custom-fit boxes for each product.
A box maker like the Anypack AB2500 allows you to create boxes of the exact size needed, eliminating waste. On average, switching from standard to custom-fit boxes reduces shipping costs by 20–30%.
2. Produce On-Demand
Ordering large quantities of pre-made boxes to get a low unit price is an illusion of savings. The hidden costs include:
- Storage space (warehouse rent)
- Obsolescence (graphic changes, regulations, product variants)
- Capital tied up in inventory
- Risk of deterioration in storage
On-demand production eliminates all these hidden costs. You produce only what is needed, when it is needed.
3. Eliminate Dies
Physical dies cost between €200 and €2,000 each, depending on complexity. For companies with many product variants, the annual die cost can be significant. Digital box makers completely eliminate this cost item, as cutting is managed via software.
4. Bring Printing In-House
Printing labels and packaging in-house reduces costs compared to outsourcing, especially for small batches. A label printer like the Afinia L901 costs just a few cents per label, with no minimum order or setup costs. For cardboard, digital printing with systems like the EDM-650X eliminates flexographic plates.
5. Rationalise Materials
Companies often use over-specified materials for their product type. A technical review can lead to:
- Reducing cardboard thickness where not necessary
- Switching from double to single wall for lightweight products
- Using recycled paper without compromising strength
- Optimising cutting layouts to reduce trim waste
6. Reduce Filler Material
Custom-fit boxes eliminate or drastically reduce the need for filler materials: bubble wrap, polystyrene peanuts, crumpled paper. This reduces material cost, packing time and environmental impact.
7. Automate Processes
Automation reduces labour costs and increases productivity. An automatic box maker replaces manual measuring, cutting and folding operations. An automatic label applicator eliminates manual application. Every minute saved is a cost reduction.
8. Calculate TCO, Not Unit Price
The true cost of packaging is not the unit price of the box or label. The Total Cost of Ownership includes storage, obsolescence, logistics, labour and waste. Often, a seemingly more expensive per-unit solution turns out to be more economical when considering the overall TCO.
Conclusion
Reducing packaging costs is an achievable goal with a systematic approach. The main levers are dimension optimisation, on-demand production, die elimination and in-house printing. Digital technologies make all of this accessible even to small and medium enterprises.