New Financial Year – Signet’s tips to help you save

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As another new financial year comes around, it is always important to consider where savings can be made. Regardless of if it’s a simple switch or larger process update, finding ways to reduce costs should be considered and incorporated into any size and type of business.

To find out how you can start saving, read through our tips below:

Tip 1  Work out your ‘Costs per Unit Packed’

Traditionally focusing on costs per roll and costs per metre have been used as ways to create savings within a business. However, a more accurate and true measure of how much it costs to get goods from the warehouse to the customer is calculating the costs per unit packed. This includes all fixed and variable costs associated with packaging your product and intangible resources such as time, people power and existing processes used to complete the actual packaging process.

You may be choosing packaging products by focusing on the price per roll, for example. One may be the less expensive per roll than the alternative, but may also have fewer metres so more rolls will need to be used. How it is used and applied to the product may also be insufficient, take more time, result in poor end packaging or require more of the product to provide adequate protection.

Working out the true cost of packaging and sending your goods can be beneficial for highlighting changes that can be made to create long term savings.

Tip 2  Assess your packaging supplies and make sure that they are the correct size for your goods

If cardboard boxes are used as the primary method of packing and shipping goods, there is usually a type of void fill around the product itself to cushion, brace or protect. If the cardboard boxes are too large more void fill is required to fill the empty spaces, and other transportation costs such as freight can very easily start to rise.

Scored or adjustable cartons are another way to minimise the use of excess void fill as they can be cut down in size to better fit your products.

The new financial year is the perfect time to assess the size of cardboard boxes being used and find a more suitable option if required.

Tip 3  Buy in bulk

This is a very easy to way help reduce costs and one that for large business who frequently package and despatch goods should be commonly carried out when purchasing supplies.

Ensure a thorough check is completed before re-ordering commonly used packaging supplies so they can all be ordered at the one time and to help reduce potential freight costs due to multiple orders.

Common packaging supplies to consider buying in bulk can include cardboard boxes, void fill (such as bubble wrap), labels, packaging tape, pallet wrap and strapping supplies.

Tip 4  Assess and update existing processes

Assessing existing processes can be done within all areas of a business, regardless of whether if it’s for the office, warehouse or a job site.

This is particularly beneficial in areas such as a manufacturers’ or warehouses’ pick line. Optimising the pick line and reducing the amount of handling by workers of the product and packaging material is crucial to help increase efficiency, profits and invaluable time savings.

These are just a few of the many ways to start reducing packaging costs but they can be highly beneficial for improving your bottom line.

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