The Packaging Tender Checklist for 2026
Rising labour costs, driven by increases in National Insurance contributions, the National Living Wage, and ongoing inflation on energy, fuel and materials, are creating challenging business conditions. With the introduction of packaging Extended Producer Responsibility (EPR) and recyclability-based levies, the financial impact of packaging is more visible than ever. Businesses of all sizes are set to be impacted. For example, John Lewis reported EPR costs of £29 million, whilst Marks and Spencer reported EPR costs of £40 million.
With this in mind, procurement teams are under growing pressure to deliver immediate, measurable cost savings in 2026. For many, launching a packaging tender feels like the most straightforward route to reducing spend. On paper, comparing suppliers on a like-for-like basis offers quick wins. However, in the current landscape, a traditional tender approach risks missing the biggest cost-saving opportunities.
To unlock meaningful value, tenders need to go beyond unit pricing and consider the wider operational and regulatory costs now associated with packaging.
In this blog we’ve pulled together six key areas to consider when approaching a packaging tender, highlighting the hidden costs that packaging can have on a supply chain. We will cover:
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Why traditional tenders no longer deliver the full picture
Historically, packaging tenders have focused on achieving lower unit prices. While this may save a few pence per item, it often fails to address the true drivers of cost, including:
- increased labour costs
- storage and inventory overheads
- logistics inefficiencies
- damages and returns
- administrative handling
- waste and recycling charges
Now, with EPR legislation shifting the financial responsibility for packaging waste onto producers, material selection and packaging design also directly influence cost.
Under EPR, businesses face fees that reflect:
- the amount of packaging placed on the market
- the materials used
- recyclability and ease of processing (defined by the Recycling Assessment Methodology aka RAM)
- reporting obligations
This means that a packaging tender based solely on price may recommend a lower-cost product that ultimately increases EPR and RAM-related charges, resulting in a higher total packaging cost.
Why EPR and RAM must now influence tender decisions
EPR fundamentally changes the packaging cost model.
A pack that is cheaper to purchase but heavier, harder to recycle or made from mixed materials could generate significantly higher EPR fees. Conversely, optimised packaging that uses less material or improves recyclability can reduce long-term financial liability.
When approaching a tender, businesses should now evaluate:
- material weight reductions
- use of mono versus mixed material solutions
- increased recycled content
- recyclability performance
- removal of unnecessary components
- clearer recycling instructions for end users
These considerations can directly reduce:
- EPR compliance fees
- waste disposal costs
- reporting administration time
- environmental impact
The tender process is now an opportunity not only to drive procurement savings, but also to lower regulatory and waste-related expenditure.
Six areas to evaluate during packaging tenders
To maximise value in the current market, packaging tenders should consider total cost, not just product cost.
We’ve pulled together six key areas for review when approaching a tender, highlighting areas where hidden costs typically sit and where procurement teams can unlock meaningful savings.
1. Storage costs
Securing a lower price through higher minimum order quantities may look appealing, but storing excess packaging can:
- tie up cash flow
- occupy valuable warehouse space
- increase rent, rates and insurance
- risk stock ageing or becoming obsolete
Distributors offering:
- just-in-time deliveries
- drip-feed replenishment
- vendor-managed inventory
can reduce stockholding costs while improving flexibility.
2. Transport costs
Packaging design plays a major role in logistics efficiency.
Optimised solutions can:
- reduce pack size
- eliminate void fill
- increase pallet yield
- improve container and vehicle loading
- cut courier charges
- reduce fuel consumption and emissions
Even small dimensional changes can significantly lower transport and carbon-related costs, supporting both budgets and sustainability goals.
3. Reduce damages and returns
Selecting the lowest-priced packaging risks driving up damage rates.
The financial impact includes:
- product write-offs
- replacement items
- multiple transport movements
- labour to re-pick and re-pack
- administration
- reputational damage
In many cases, investing in the right protection can dramatically reduce damage-related costs.
4. Administration and reporting costs
Packaging now carries additional administrative burden, particularly under EPR.
Businesses must track:
- packaging weights
- material types
- recyclability categories
- reporting volumes
- packaging use purpose (e.g. whether it will end up in a UK household, is exported or for B2B use)
Multiple suppliers often mean multiple data sources, increasing resource requirements and risk of errors.
A tender that considers:
- supplier consolidation
- centralised reporting
- consolidated invoicing
- reduced deliveries
can significantly reduce internal administration and EPR reporting workload.
5. Productivity costs
Rising labour expenses make packing efficiency more important than ever.
Complex or inefficient packaging formats increase:
- pack times
- labour requirements
- overtime costs
- temporary staffing needs
Suppliers should be encouraged to propose:
- faster pack formats such as crash-lock boxes
- composite solutions removing the need for void fill
- semi or fully automated packaging systems
- improved packing bench layouts and workflow
Reducing seconds per pack can have a huge cumulative impact.
6. Customer experience
Packaging remains a crucial part of customer satisfaction and retention.
Consider:
- ease of opening
- safe handling
- clarity of instructions
- recyclability
- waste generated
With sustainability expectations increasing, businesses that deliver a positive unboxing and recycling experience strengthen their brand and customer loyalty.
Reframing your tender for real savings
The economic landscape means businesses need packaging solutions that deliver:
- reduced operational spend
- lower labour impact
- reduced EPR and RAM fees
- improved efficiency
- less waste
- enhanced customer experience
To achieve these outcomes, tenders should:
- allow innovation and alternative proposals
- consider total cost of ownership
- evaluate packaging through an EPR lens
- review logistics and productivity impacts
- encourage material and weight reduction
- prioritise recyclability
How Macfarlane Packaging can help
At Macfarlane Packaging, we know that packaging tenders are no longer about simply comparing prices. Our approach focuses on reducing total cost of ownership, helping you unlock savings across labour, logistics, storage, damage and now, increasingly, EPR-related costs.
Before responding to a tender, our experts work with you to review your full packaging operation, identifying hidden cost drivers and opportunities for improvement. This allows us to propose solutions that go beyond the specification, delivering measurable savings and operational benefits.
With the introduction of packaging Extended Producer Responsibility (EPR), our support extends to material choice, recyclability and reporting requirements. We can help you understand how packaging design affects EPR fees and recommend changes that reduce material usage and long-term regulatory costs.
Our Innovation Lab enables rapid concept development using 3D design, prototyping and digital modelling, helping validate ideas quickly. For products requiring higher protection, our design and testing capabilities, including drop, vibration and compression testing, ensure proposed solutions maintain performance while reducing cost.
By combining technical innovation with regulatory insight, we help procurement teams secure smarter, more efficient and future-proof packaging solutions through the tender process. Get in touch today.