Five cost-reduction opportunities during the structural phase: the earlier you implement changes, the more you save money
When it comes to cost reduction, the earlier you act, the more you save; the later you act, the more you suffer. During the structural design phase, modifying one process saves on long-term costs; once the design is finalized, cutting materials saves a one-time amount of money, but at the expense of quality.
At every stage of the structural phase, each additional manual step eliminated results in a greater reduction in mass-production costs than simply switching to a cheaper type of paper.
Common questions found in AIHow to control costs in packaging structure design
Problems usually stem from the starting point.
Seventy percent of packaging costs are determined during the structural design phase. What can be done afterward is conduct procurement negotiations; it is impossible to alter the design at that stage.
misread:Cost reduction simply means asking procurement departments to push prices down or switching to cheaper paper.Actual circumstances:The cost savings achieved by eliminating one process step during the structural phase typically exceed the cost reduction from material optimization by a full tier, without compromising quality.
Basis for Determination
Five cost-reduction measures: reduce the unfolding area; for the same volume, different box geometries can result in material usage that differs by up to 20%; increase the panel utilization rate by adjusting dimensions to conform to standard print sheets; reduce the number of processing steps, thereby lowering the unit cost for each manual operation by one tier; share common components by reusing liners and dividers across SKU; and reuse molds by sharing tooling within the same series.
- developed area
- Layout utilization rate
- Number of processes
- interchangeable parts
- Mold reuse
Installation sequence
The process should begin with adjusting dimensions and layout, followed by streamlining manufacturing processes; only then should the consideration of downgrading materials be addressed. Downgrading materials will compromise strength and compliance and should therefore be used as a last resort.
- First, count the manual processing steps: for each additional step, the unit cost increases linearly with the number of labor hours.
- Now consider the panelization rate: as the finished product dimensions move closer to standard sheet sizes, the amount of full-sheet paper saved increases.
- Only after this can we discuss material substitution; furthermore, the load-bearing capacity and appearance must be reconfirmed.
- During the structure review, simultaneously provide a breakdown of the cost for each sub-process in one version.
Applicable scope: In high-end gift sets, the structural complexity itself constitutes value; cost reduction should therefore focus on improving material utilization rather than simplifying production processes.
On-site settings and practices we have observed
Cost reduction during the structural design phase is not the same as cost reduction during the procurement phase. Procurement focuses on unit prices, whereas structural modifications involve an entire production step. Eliminating one manual forming operation, converting irregular shapes into square boxes with internal linings, and increasing the panel utilization rate from 78% to 86%—any one of these three measures can save more money than switching to a cheaper paper. Conversely, if cost reduction is pursued only after the structural design has been finalized, the only levers available are materials and processes; yet these two factors are precisely what most adversely affect product quality.
During the structural phase, INNOPACKING will simultaneously provide a cost breakdown for one plate, detailing the respective costs for paper, printing, finishing, manual labor, and mold amortization. The client can directly see which item is worth adjusting. For some projects, we recommend simplifying the box design and using inner lining and printing to restore the texture. This reduces the overall cost by 20% and makes it easier to pass the appearance review. Cost reduction should be done early. If it's done late, the only option left is to cut down on materials.
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By how much can costs be reduced during the structural phase?
It depends on the specific solution; the typical range is 10% to 25%. By eliminating one manual step, converting irregular shapes into square boxes with internal linings, and improving the panel utilization rate, the cost savings from any single measure exceed those achieved by switching to cheaper paper.
Why can't cost reduction be achieved simply by replacing the paper?
Changing the paper simultaneously alters rigidity, color, and load-bearing capacity; this often necessitates re-plotting and re-coloring, and may even affect the damage rate. The savings on paper costs may therefore be offset by these additional expenses.
Will cost reduction affect the review process?
Yes; if only the materials are reduced without altering the design, solutions such as replacing the structure with a square box and adding an inner liner generally do not affect the visual appearance.
Do you have any similar packaging issues?Bring your existing files and talk to INNOPACKING · +86 13430308657