Tuesday, August 1, 2017

Reduce Packaging Costs Using Cereal Boxes

Packaging is defined as a science and an art. It's more of an art when we are talking about consumer products and more of a science when we speak about industrial products. When we talk about cost improvement there are a lot of conflicting requirements. A packaging designer is like a Jack of all trades. One has to look at the requirements of a carpenter, from the angle of cost, the vendor who should be able to supply; then there is the manager or owner who looks at total profitability and product safety, they Packers their own safety while packing. Then the ease and safety of unpacking at the other are concerned about the end and being tamper-proof in between.
When companies are looking to reduce costs, their first focus is often what product design changes can be made to reduce material costs. Cereal boxes can be used readily in an effective way to reduce the overall packaging costs. Many completely overlook the option of refining the product’s packaging design instead. Improving and optimizing packaging design can not only save a company boatloads of money, but it can also provide better product protection and a reduced carbon footprint.
Image result for Cereal Boxes
Consumers are becoming increasingly passionate about sustainability and are often more willing to reduce the packaging costs. Design packaging that is easy for consumers to collapse or disassemble for recycling. Some countries (including Germany and England) have established strict regulations on consumer product waste, and the US will likely follow suit in the near future.
My motto is strong packaging, clear addressing.
Halldór Laxness
There are a number of automated packaging solutions designed to speed up the packaging process, freeing up workers to perform other tasks, and in turn reducing the packaging costs. This can be anything from an automated stretch wrapping machine, to box erectors and sealing machines. Where hand stretch wrapping a pallet might require two people, after introducing an automated stretch wrapper, the process will only require one.
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What makes Packaging Easier?
Getting an idea of the whole packaging and distribution process makes it easier to identify steps to ensure the process is as efficient and cost effective as possible.
Over viewing the process
The best way to do this is to overview the process from the moment the item is picked off the warehouse shelf, right up until the customer takes it out of its box. This way, you're a step closer to choosing the right materials to improve your packaging process and make savings where you might not have known you could.
Now let’s see the cost of cereal packaging. One is the primary cost of custom cereal packaging is the material cost which is the major cost. Then there is the cost of designing the printed cereal packaging and capital cost for carrying out the process. Labor is a recurring cost. Indirect cost is overheads, insurance, R&D. When we talk about reducing cost it can be in any of these above components provided the performance is the same.
In the process of reducing cost by value engineering, we try to separate unnecessary cost from necessary cost, without affecting the performance of custom printed cereal packaging. The hidden problem needs to be defined. If a box breaks it could be a problem of wood, nail, thickness or design. So define the required strength and meet it - this is done in value engineering.
Recycling, packaging, businesses are changing all of those things because that's what consumers want.   
When you open a new cereal box, before you tear into the bag, you're likely to see some empty space at the top. There is a need to overcome the custom cereal boxes and custom cereal packaging with an effective method of packaging that might help in reducing the cost and helps in the increment of profit and revenue. Cereal inside the cereal box settles during shipping, with smaller pieces filling all the space at the bottom and leaving that extra space on top. If you've ever tried to squeeze more cereal into something – a bowl, a bag or a storage container – and you've done it by shaking the container, you've taken advantage of this same phenomenon.
How can cereal packaging be used to reduce the amount of Packaging?
Earlier this year, General Mills (NYSE: GIS) found a way to use it to reduce the amount of packaging it uses for its bulk boxes of Cheerios. The proprietary technology, which had been under development for five years, the wholesale cereal boxes now settles on the production line instead of during shipping. As a result, 10 percent more cereal fits into the boxes, reducing the packaging per volume and the related shipping costs and emissions.
Increment in the Profit
Fitting more cereal into less space means fewer trucks are needed to transport the same volume.  It would need 10 percent less trucking for these boxes, which will save 25,000 gallons of fuel and reduce its carbon footprint by 220 metric tons annually. The company accomplished the smaller packaging – and more cereal per package – in spite of trading a single big box for a package of two smaller, connected boxes that can be split apart. In this way, we can increase the profit of cereal packaging wholesale.
Getting more consumers to buy bulk
Customers don't like big boxes. Ease of storing in printed cereal boxes and pouring is the biggest barrier to the bigger sizes, although customer research showed that consumers like the value of larger packages.

Either way, of course, getting more cereal into a smaller package represents a step forward. And if it ends up applying the same technology to its regular-sized custom printed cereal boxes too, that could potentially have a much larger cumulative effect on reducing packaging and trucking emissions. Using wholesale printed cereal boxes instead of the latter ones, one can indulge the customers to buy the product in a bulk which will help in reducing the packaging costs.

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