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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Tip #1 Minimize Empty Space
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 miss out on opportunities to increase sales through individualized branding materials that effectively reach their target audience.
Related: Beginner's Guide To Custom Packaging
Stock Boxes Aren't Always The Right Choice
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 return processing, but there's also additional expense in void-fill materials.
Brands should weigh all potential outcomes carefully before committing to buying large quantities.
Custom Packaging Design
Businesses can maximize their returns by investing in 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, creating a more sustainable solution that's good for both your finances and the environment!
Tip #2 Switch Materials
Switching packaging materials is an effective way to reduce costs while still providing crucial protection and branding for products.
Board Grade
It's important to assess the board-grade material you have chosen as a 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 on the weight and shipping situation.
Packaging Supplies
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 costs throughout its lifespan.
Tip #3 Get A 3PL
To stay competitive in an uncertain economic climate, companies must 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 to staying ahead of challenges associated with potential slowdowns or disruptions throughout the supply chain.
A Good 3PL Is Worth Its Weight In Gold
Even with a strengthening economy, 3PLs 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.
React To The Economy Quicker
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!
Tip #4 Use A Co-Packer
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 is 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.
Related: 4 Reasons You're Ready For A Co-Packer
Less Shipping
At Bennett, we can manufacture your packaging and displays, bring your product in, and pack it for nationwide distribution. This means less shipping between warehouses, helping to reduce breakage.
No Leases
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 manage the lease, and it's one less thing on your bottom line.
Reduce Employee Headcount
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.
Tip #5 Switch To Digital Printing
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.
Lower Your Risk
Switching to Digital Printing can reduce lead times and one-time expenses for things like tooling and help streamline your supply chain. It can also easily accommodate small runs as needed without adding additional expenses or delays in production.
Flexibility And Ease
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
Get A Packaging Quote From Bennett Today
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 the 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.
