Economic Times Call for More Efficient Packaging Solutions

How can you save on packaging costs with the changes to DIM Weight package increases in 2015?

Last year UPS and FedEx announced they would be transitioning to a new DIM (dimensional) weight package rating schedule starting in January 2015. Unlike the previous methodology to calculate shipping costs, the price of package delivery would be based on the item's volume - the amount of space it takes up on a truck - and not just its physical weight. Faced with the prospect of increased costs to ship lightweight residential and commercial packages, companies were urged to rethink their approach to packaging items for shipment. 

Cost control in procurement and supply chain management

Now that 2015 is here, increases in small package shipping costs have become a reality. In addition, customers are demanding better protection for shipped items, and packaging sustainability and "light-weighting" are quickly becoming primary considerations in package design and supply logistics.

Companies must completely rethink their approach to how they package items for shipment, focusing on more "efficient" packaging while maintaining proper protection for the product being shipped. Using a "one size fits all" approach to product packaging may have been a good idea in the past, but it is a guarantee of higher than necessary packaging costs in the future. For many organizations, the task may be daunting; they realize they have to rethink their delivery and supply logistics, but where will you find the time to dedicate to a complete packaging review?

Tough economic times typically lead companies to implement internal actions to reduce packaging costs. Many of these measures address only the unit price paid for packaging materials, while completely avoiding the more important cost of the final package.

In the world of industrial packaging, cost reduction options are varied - reduce consumption, change suppliers, find alternate products, increase efficiencies and productivity, "bid out" existing needs to cut costs, or remove/reassign staff. Each of these options may play a role in an overall cost management strategy. This is where Expense Reduction Analysts can help. We bring in all the resources required to analyze, execute, monitor, and manage the entire review of your packaging costs to ensure the least distraction to your team.

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