An Unlikely Duo: The Impact of Packaging and Product Design on Shipping Costs
So you design this awesome product that people need and want, then you figure out a beautiful package thats sustainable and gives the customer a great first impression of your company. BUT THEN, you contact shipping companies to get rates of how much it will cost to send your awesome, beautifully packaged product to your customers…and it's way, way more than anticipated. How can that be?
Well, let me use an example. A few years ago, I had a small designer of furnishings for businesses reach out. They had designed a hand-sanitizer stand and they found that their shipping costs were wildly high. They contracted me to contact shipping companies and get additional pricing for them. Well after some research it became very clear that I would not be able to decrease the shipping of this product. The design at the time and the box that needed to be used for shipping were what is considered “oversized” at most if not all shipping companies. This means there is an additional fee, that is not cheap, applied every time this client shipped one of these stands to their customers. So what did I do? I suggested a potential redesign of the product, it wasn’t the solution I thought I was going to suggest but it turned out to be the best option. The client considered it for a minute and then said “Yeah I think I can do that”. After the redesign, the size and shape of the box was considered “regular” for all shipping companies, so the cost of shipping decreased on average by 67%! While this is an extreme case, understanding design choices’ effect on shipping costs can yield savings.
Packaging and product design are not merely aesthetic choices; they play a pivotal role in determining the efficiency and cost-effectiveness of your shipping and supply chain operations. The story of the furnishings designer serves as a compelling example of how design decisions can inadvertently lead to inflated shipping costs. Let's dive deeper into the critical aspects where packaging and product design intersect with shipping and supply chain dynamics:
Dimensional Weight Considerations: The size and shape of your product packaging directly influence its dimensional weight, a key factor in determining shipping costs. Oversized or irregularly shaped packages often incur additional fees due to the increased space they occupy in carriers' vehicles and warehouses. Businesses can mitigate these extra costs by optimizing packaging dimensions to align with carrier guidelines. Consider either using carriers’ standardized boxes or mimicking their exact dimensions.
Material Selection and Weight: The materials used in packaging and product design contribute to the overall weight and durability of the shipment. Lightweight yet robust materials can reduce shipping costs without compromising product integrity or protection. Conversely, excessive packaging materials or heavyweight designs can escalate shipping expenses quickly and often exponentially. Always keep up to date on options in the packaging industry to ensure the use of the lightest, most durable, and cost-effective options.
Packaging Efficiency and Space Utilization: Efficient packaging design maximizes space utilization in shipping containers, pallets, and storage facilities. Streamlined packaging solutions that minimize empty space and facilitate stacking can enhance warehouse efficiency, reduce transportation volumes, and lower shipping costs. Collaborating with supply chain partners during design to optimize packaging dimensions can yield significant savings and operational improvements.
Sustainability and Eco-Friendly Practices: While focusing on cost optimization, it's essential to consider sustainability and eco-friendly practices in packaging and product design. Sustainable materials, reusable packaging solutions, and eco-conscious design principles can reduce environmental impact, enhance brand reputation, and potentially lower shipping costs through innovative packaging solutions. Some new sustainable packaging can be surprisingly light and durable. However, the cost of these solutions can sometimes be higher due to them not being abundant in the market, yet.
In summary, packaging and product design are integral components of shipping and supply chain management, influencing costs, efficiency, and sustainability. Be sure to prioritize design considerations that align with carrier requirements, supply chain logistics, and environmental stewardship. Remember, the right design choices not only enhance product appeal but also optimize shipping costs and can help streamline the entire supply chain ecosystem. Want to find out if your packaging or product design are costing you money? Head over to the contact page and send us a message.
