5 Packaging Supply Chain Tips During A Recession
Time to read 4 min
Time to read 4 min
When the economy slows down, consumer brands need to be prepared. Forward-thinking companies understand that strategic supply chain improvements - including packaging and branding - are essential in order for their business to thrive during tough times. With an optimized and winning formula, any company can sail through a recession like it never happened!
Here are five tips that you can use to recession-proof your packaging.
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In difficult economic times, many businesses are tempted to take shortcuts and save money by opting for generic packaging solutions.
However, this approach will likely hurt profits in the long run as brands lose out on opportunities to increase sales through individualized branding materials that can effectively reach their target audience.
Related: Beginner's Guide To Custom Packaging
Stock Boxes may initially seem cost-effective, but the hidden costs can add up. Not only does it increase the risk of product damage and returns processing - there's also additional expense in void fill materials.
Brands should weigh all potential outcomes carefully before committing to buying large quantities.
Businesses can maximize their returns by investing with custom packaging solutions. This custom option is designed to fit the exact dimensions of your product and no extra fill materials are necessary, saving companies money on supply costs and freight fees.
Not only does this decrease overall expenses but it also helps reduce waste for a more sustainable solution that's good for both your finances AND the environment!
Switching packaging materials is an effective way to reduce costs while still providing crucial protection and branding for products.
It's important to assess the board grade material you have chosen as way to reduce the budget. Depending on your project, you might be able to change to a cheaper board grade material. While it can be cheaper, it may not be sturdy enough for your products, depending largely on the weight and shipping situation.
Maybe you're using too much tape on your packaging, or a different void fill material might be cheaper, this can be a great place to look for savings. Even streamlining design can help reduce cost throughout its lifespan.
To stay competitive in an uncertain economic climate, companies need to be proactive and consider outsourcing their supply chain. Through a Third-Party Logistics Company (3PL), businesses can efficiently manage the entire lifecycle of products - from raw materials acquisition to delivery and end-use.
This is the key for staying ahead of challenges associated with potential slowdowns or disruptions throughout the supply chain.
Even with a strengthening economy, 3PLs continue to provide long-term cost savings opportunities and operational efficiencies. With up-to-date solutions that adapt as the market shifts, these third party logistics providers are an invaluable asset for any business looking for reliable supply chain management excellence.
Leveraging the expertise of a third-party partner can be an invaluable asset to your supply chain. By utilizing their resources, tools and vendor relationships they are able to reduce costs while also providing faster response times in dynamic markets.
It lets you focus on what matters most: growing your enterprise!
A co-packer is a company that takes all of your parts, and assembles the final product packed and ready for its destination. While many businesses do this in their own warehouses, it can actually be a great way to reduce costs. Companies that outsource their product assembly to a co-packer can experience cost savings. This option helps businesses free up resources within their own warehouses while ensuring optimal quality control standards are met by experienced professionals.
At Bennett, we offer the ability to manufacture your packaging and displays, bring your product in, and pack them for nationwide distribution. That means it needs to be shipped between warehouses less, helping to reduce breakage.
Forget about getting more real estate and space to expand your warehouse operations. Instead use a company that is focused on that part of your business. They mange the lease, and it's one less thing on your bottom line.
Packing all those products can take a lot of people, we know. That makes it a great area to reduce costs for your business. Let a Co-Packer manage the employees, and you worry about the overall lifecycle.
In times of economic downturn, consumer spending can often be unpredictable - leaving many brands blindsided by a sudden buildup of excess packaging inventory. Not only does this surplus tie up valuable capital and warehouse space, but it runs the risk of expiring or becoming obsolete before ever being put to use.
Digital printing can help fix that! Digital Printing has no tooling costs, and faster turnaround times. Rather than buying in bulk, you can schedule a recurring shipment.
Switching to Digital Printing can reduce lead times, one-time expenses for things like tooling, and help streamline your supply chain. It can easily accommodate small runs as needed without adding additional expenses or delays in production.
Brands are taking advantage of digital printing to control their production cycles, so they can react to the market quickly. This print-on-demand approach means businesses no longer have to pay extra for the flexibility that comes with it - a win/win for everyone.
Related: Digitally Printed Packaging Tips
In conclusion, custom packaging solutions and 3PLs are invaluable assets for businesses looking to increase efficiency and reduce costs. Digital printing is a great way to control production cycles in order to react quickly and lower risk of excess inventory buildup. Investing in these strategies can help you stay competitive during times of economic uncertainty while also providing long-term cost savings opportunities that benefit your bottom line.