If your company is involved in manufacturing, most likely you are involved in packaging.
The cost impact of your packaging is reflected on many lines of your financials. Two large impact areas include:
- Material Specs – This is the most fundamental part of the process. The materials must meet your needs in order to protect your product as well as your brand. You should always evaluate alternative materials that help meet or exceed current specifications.
- Package Design – Design changes can have an impact to your costs both positively and negatively. If your company utilizes the outside of the packaging to transfer information to your customer, this too is loaded with areas that impact cost. For example, you might consider switching to fewer print colors. For example, if your box is printed using three colors, switching to two colors will provide instant savings.
The most recognizable cost of your packaging is on the invoice from your supplier. You might consider some other lines of your financials where packaging is found, such as transportation, sales and labor. A small change in your packaging can result in a big financial impact. There are big dollars in small changes.
