How packaging optimisation can slash costs and cut waste
In the current business landscape, the importance of efficient packaging cannot be underestimated.
Although packaging helps to protect products during storage and transportation, a poorly optimised operation can hide up to 90% of your packaging costs. By adopting a smarter packaging strategy, your business can cut costs, all while contributing to a more sustainable future.
This blog explores how packaging optimisation can help companies reduce material usage, lower shipping expenses, and minimise waste generation – all while improving the bottom line.
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The true cost of inefficient packaging
Many businesses underestimate the impact of inefficient packaging on their operations. Oversized boxes and excessive void-fill materials can lead to higher costs, increased shipping fees and unnecessary waste.
Not only does it directly impact your business costs, but it also increases the impact on the environment, such as raised carbon emissions from transportation.
Customers are becoming increasingly aware of environmental issues and quickly call out businesses that use excessive materials. Addressing these inefficiencies is not just an operational necessity but also a competitive advantage.
Your consumers are also impacted by inefficient packaging due to the increased risk of product damage during transit. This can lead to higher return rates, additional costs for the business and a negative experience for your customer.
4 ways to optimise your packaging operation
Whether motivated by regulatory changes, cost pressures, or environmental goals, now is the time to assess your packaging strategy and unlock its full potential. See our top 4 ways to optimise your packaging operation for a new start in 2025.
1. Revaluate your packaging sizes
Take time to consider the products you offer and what packaging solution would work best. Reflect on the process of packing your biggest items vs. your smallest, and how much extra space are you accommodating?
Maybe the packaging material you’re currently using isn’t the best fit for your business, or you need to condense/increase sizes. By eliminating excess space, you can reduce material and shipping costs while enhancing overall product protection.
You might even consider a custom solution to ensure all your concerns are tested and minimised. For this kind of specialised advice, you can plan a visit to one of our Innovation Labs. Our expert team of technical packaging designers uses the latest software to solve your packaging challenges and create optimised packaging solutions tailored to your goals.
2. Switching to more sustainable materials
With the incoming Extended Producer Responsibility (EPR) regulations, you might consider introducing more sustainable options into your operation in 2025.
As EPR costs are calculated by the materials used, harder-to-recycle materials incur higher charges than easier-to-process materials. So, we recommend checking the packs you’re using and what they contain.
Prioritising environmentally friendly solutions can often help you cut down waste and minimise transportation costs. This is especially true when the weight and type of your materials can mean the EPR regulations will impact your business more.
Learn more about EPR with this short video:
3. Make your packaging lighter
Reducing the weight of packaging materials without compromising strength is another effective strategy. Lighter, more space-efficient packaging can reduce your transport costs.
Finding the perfect balance of product protection can be difficult, but having a space-efficient pack can offer a better fit for the product (so you’re not shipping air) and allow for pallet optimisation.
An optimised pallet means you can reduce the number of journeys per volume of goods shipped. Fewer journeys equals less CO2, so the right packaging is integral to a low-carbon supply chain.
4. Reclaim warehouse space
An often-overlooked area of an operation is your valuable warehouse space. Bulky or inefficient packaging can take up unnecessary room, increasing storage costs and limiting operational capacity.
By maximising storage efficiency or adopting a Just In Time (JIT) strategy, you can free up significant space in your facility. We can hold your stock from our national network of regional distribution centres. As we have sites across the country, you will always get the right amount of packaging exactly when needed.
Not only does this save in storage costs, but you’ll also reduce wastage in your supply chain, making it more sustainable.
Case studies: packaging optimisation in action
Our packaging experts have helped many companies achieve their goals through personalised advice, testing and innovative ideas. Check out these two examples where we used packaging optimisation to save money whilst also enhancing their sustainability:
Childrensalon
Childrensalon is an award-winning, forward-thinking British childrenswear retailer that provides clothing from fine designers worldwide.
We designed and supplied sustainable packaging solutions, helping them remove 54 tonnes of material and 44 tonnes of CO2e from their supply chain each year.
Parsley Box
Parsley Box provides over 900,000 innovative ready meals that are easy to store and prepare each month to support independent living among its customers.
We worked with them to create a packaging solution that was kinder to the environment, improved their pack times, and provided an annual savings of over 20% on delivery costs.
For more examples, click here to view our case studies.
Use packaging optimisation to scale your business
Consider how your operation dealt with varying environments, such as increased demand in 2024; it may be time to consider introducing automation systems in 2025.
In larger or growing operations, efficiency, sustainability and cost management are always important. By utilising packaging automation, businesses can reduce waste and achieve significant savings while improving throughput and reliability. Investing in optimisation also helps businesses stay competitive by reducing downtime and ensuring consistent quality across high-volume outputs.
While the initial financial investment in packaging machinery may seem daunting, it can provide a return rapidly. Plus, at Macfarlane Packaging we can offer different finance options to manage costs.
If you are curious about packaging automation, our free downloadable guide to automation can help you find the right system for your business!
Embracing packaging optimisation for long-term gains
Packaging optimisation is a cost-saving measure and a strategic approach to business growth. By reducing material usage, lowering shipping expenses and minimising waste, companies can save money while enhancing their sustainability.
Now is the time to review your packaging processes, adopt innovative strategies and take a step towards a more efficient but sustainable future. The rewards—for both the planet and the bottom line—are well worth the effort.
If you would like a personalised, in-depth breakdown of where to find the hidden costs in your operation, our Packaging Optimiser saves you money and reduces your carbon footprint.