Packaging Optimisation

The crucial parameter for packaging material optimisation is the quantity and quality of the material used. The identification factor for the customer is the package cost per one packaged product unit. The correct practice of packaging cost calculation considers the price share for transportation of the package and the packaged product (logistics in general), that is, all relevant costs directly and indirectly attributable to the package.

The perfect combination is when the optimised package holds more product units at a lower price than the earlier version.

According to the axiom of “It is not necessary to search for the best packaging; only look for what is necessary”, it is therefore necessary to check all parameters that affect the packaging requirements. The following procedure consists of these steps:

1. Change of packaging specifications

Over time, there may have been changes in the transportation, quantity, or in the price of the packaging materials. The above may represent a change for the packaging requirements. This will lead to changes in the design or in the material and its specifications.

2. Change of design

Simplification of the design or even a more economical variation delivers lower consumption of material. However, a paradoxical situation may arise where a more complex or a completely different design leads to higher packaging utilisation, delivering lower costs for product packaging.

3. Change of material or its specifications

The cost of the material represents at least 50% of the overall package price. Therefore, saving 10% on the material reduces the overall price by at least 5%. Another change may consist of selecting a lower quality material. All of this corresponds to “It is not necessary to search for the best packaging; only look for what is necessary.”.

Efforts to obtain a package that offers 100% protection to the product packaged may result in a development and manufacturing cost considerably higher than the cost of obtaining a “lower function” package. The perfect scenario therefore suggests striking a reasonable compromise.

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