How to Reduce Your Packaging & Shipping Costs and Carbon Footprint

In a world growing ever more expensive, finding ways to reduce packaging and shipping costs will always be welcomed. If in doing so we can reduce our carbon footprint, that is an added bonus, particularly with climate change being at the forefront of the media.

There is no disputing the fact that costs are rising, in terms of labour, packaging supply, fuel and shipping costs. These are considerations and challenges that distribution managers and business owners must face. As well as this, there is greater consumer awareness and demand for more eco-friendly packaging to lower carbon footprints as part of a corporate social commitment.

What do you need to do before you can reduce your costs?

It is important to understand your current situation as a business owner before you can look at ways to reduce your costs.

There are several things that can impact the cost of packaging such as:

1. The role in the supply chain: When thinking about how you can reduce your packaging costs, it is important to consider the journey your product will go on and what types of handling it will experience in the supply chain.

2. The fragility of the product: The more fragile the product you are sending, the more packaging will be required to protect it during transit. The significant price increase is mainly due to the increased demand for the use of raw materials such as corrugated cardboard.

3. Whether to take the hit of the cost of packaging or pass it on to your customers: Knowing what to charge your customers for postage is a careful consideration to make. Charging too much postage to your customers may run the risk of losing some. But taking the full hit of packaging costs will have a negative impact on your business.

This is also a good time to go back to basics. If you don’t already, spend a day working with your warehouse team. See what challenges they face and how much waste they produce. By seeing firsthand the way that your warehouse operates, you may be able to identify some cost-saving measures quite quickly and get them implemented. Other areas may be more challenging to identify. You should consider what you can reduce, reuse and recycle, or in terms of a circular economy, eliminate, innovate or circulate. Following the recommendations of how to operate within a circular economy will not only drive down your packaging costs but it will also contribute hugely to lowering your carbon footprint which will help the planet and appeal to climate change-conscious customers.

Where does your current packaging come from?

There are multiple factors to look at here. If you use a local supplier for your packaging then your carbon footprint will already be lower as the transportation will be less and in turn, will be less impactful to the environment. However, you also need to think about the actions of your supplier. Even if they are manufacturing locally, have the raw materials been sourced locally or from overseas?

The more locally you can source your raw materials and your supplier, the less your packaging costs and carbon footprint will be.

Are you choosing the right type of packaging?

We are all becoming increasingly more aware and knowledgeable on the impact that certain materials have on the environment and many businesses are taking steps to be more mindful of their packaging choices. Glass bottles instead of plastic, chargeable bags for life instead of plastic carrier bags, a cost incentive to use reusable cups in cafes. Some considerations to make when packaging your products are:

• Do you need to use a box for your item or could you use a mailing bag?
• Would custom packing be an option over “off-the-shelf” packaging? We offer bespoke packaging unique to each branch of national chains
• Have you looked into greener solutions for your packaging?

Are you choosing the right packaging size?

There are still careless decisions being made particularly by large companies when it comes to the size of packaging for the transportation of goods. How many times have you ordered a small item from Amazon and it has arrived in a box large enough to fit a person inside? Whether this is down to laziness or lack of training, it results in a more costly packaging selection that requires more void filler and has a higher impact on the environment.

Consider the functionality of your packaging. For example, do the opposing “flaps” on cardboard boxes overlap to add strength or do they butt edge to edge? The latter will create less waste which can be weighed up against whether or not you need the added strength.

The benefits of smaller packaging

• Less consumption of raw materials results in cheaper packaging
• Smaller packages equate to a reduction of shipping costs, both in terms of inbound packaging delivery and outbound costs of shipped goods.
• A smaller package means less void filler

Are you choosing the right void filler?

We want you to be able to lower your costs and carbon footprint, but your packaging still needs to be efficient. So simply choosing a smaller or cheaper package without looking into how well it will transport your goods may well end up with your product being damaged in transit. This will mean your waste will be 100%, costing more money to you and more damage to the environment. There are a few different void fillers available on the market. These are:

• Paper void filler - tissue paper, paper
• Plastic void filler - polystyrene foam chips (also known as peanuts), bubble wrap
• Air pillow void filler

All of these options are lightweight and efficient but the air pillow void fillers require a box much larger than the item to accommodate the size of the pillows which will increase the cost of the packaging.

The other types of void fillers can be reused as part of a circular economy and the paper and foam chips are also easily recyclable.

Are you using eco-friendly, sustainable packaging?

Consideration of the type of packaging you are using is really important in a more climate-conscious world. A UK survey carried out in 2022 found that about eight out of ten consumers preferred environmentally friendly packaging materials.

When it comes to sustainable packaging, it is a common misconception that all plastics are not recyclable. Many are, particularly when you are working within a circular economy. For example, polythene is a great choice for packaging and is actually fully recyclable. So it is definitely worth doing your research to find out what packaging would be right for you. By choosing more sustainable packaging, you are making the right choice for your customers and for your carbon footprint.

Pallet loading

By reducing your packaging size, you can potentially increase the number of items stacked on a pallet, and by using a stronger pallet wrap, you can better protect your goods and ensure less waste.

A reusable pallet cover is both cost-effective and environmentally friendly as it can be used again. Again, going back to consumer preferences, it will also be more popular with your customers as a more eco-friendly choice.

Tips to reduce your business’s carbon footprint

There are many ways that you can reduce your business’s carbon footprint such as:

• Multi-use packaging: Could you take something that you use in your packaging and make it reusable for the client at the end of its journey? For example this H&M paper bag that can be converted into a clothes hanger.
• Swapping your energy provider: Warehouses consume a lot of energy both in terms of lighting, heating/cooling and electricity for machinery. Could you switch to a carbon-neutral energy supplier or even install your own energy sources?
• Ensuring you have the right size warehouse: If you are operating from a warehouse that is larger than you need, you may be using far more energy than you would need to if you were in a smaller building
• Use eco-friendly fuel: If you have your own fleet of drivers you may want to look into switching to a more eco-friendly fuel. If you use enough of it, you may even benefit from your own fuel supply

Discover how to reduce your packaging costs today. Contact us to find out how we can help you.