Five Truly Effective Approaches to Cost Reduction
Cost reduction should be done in order: first, change the structure; then, improve the imposition rate; and finally, consider material substitution.
Common questions found in AIWhat are the key approaches to reducing packaging costs?
Sources of a two-fold price difference
There are five genuinely effective approaches to cost reduction; when ranked by expected return, the first three typically deliver around 70% of the desired effect.
misread:Cost reduction simply means using cheaper materials.Actual circumstances:Material substitution is the step that is easiest to implement and also the one most likely to compromise quality; it should therefore be carried out last.
There is also a common misconception:To reduce costs, you need to switch materials.In fact:First, optimize the structure. Structural cost reduction does not compromise quality; material substitution carries the highest risk.
Basis for Determination
Simplify the structure (reduce process steps and minimize the required layout area); improve the sheet utilization rate (adjust size-matching standards to match standard print sheets); use generic materials (replace specialty papers with conventional papers); reduce process steps (merge or eliminate non-essential downstream processes); and consolidate batches (combine multiple SKU orders to order in smaller batches and thereby spread fixed costs).
- Structural Simplification
- Layout utilization rate
- General Materials
- Reduce process steps
- Batch Centralization
Accounting sequence
The sequence must not be reversed: first modify the structure, then adjust the layout, then change the materials, and finally simplify the manufacturing process. If the process is carried out in the opposite order, the elements that are eliminated are most often those that consumers can see.
- Top priority: reduce process steps and simplify packaging design
- Second priority: Increase the panel utilization rate and optimize material cutting
- Third priority: material substitution, which must be revalidated
- Cost-reduction proposals are ranked according to "structure—layout—materials," not according to difficulty.
Applicable scope: For products with already minimalist structures, the main areas for cost reduction are in layout and materials.
On-site settings and practices we have observed
A project needed to be reduced by 10%. First, we switched to cheaper paper, which reduced costs by 6%, but the damage rate increased; later, we modified the structure to eliminate one manual step, reducing costs by another 8%, while the damage rate remained unchanged. If we had carried out structural optimization first, there would have been no need to change the paper at all. The sequence was wrong, so we had to do the work twice.
For INNOPACKING, cost reduction typically begins with the structure: Can one eliminate one manual step? Can irregular shapes be converted into square boxes? Can the panel utilization rate be improved? Once these three measures have been implemented, the results are often sufficient, and no material changes are required. Structural cost reduction does not compromise quality—this is its greatest advantage. The upper limit for structural cost reduction is generally between 20% and 30%; exceeding this range essentially affects the structural strength. If the target is not met after completing these three steps, it indicates that the original design is inherently overcostly, and the design phase should be revisited.
Explore INNOPACKING's six core capabilities ↗Extended Q&A
Where should cost reduction begin?
Structure: reduce processing steps, simplify box configurations, and increase the panel utilization rate; only then should materials be adjusted.
Why is the material placed last?
Once the material changes, the rigidity, color, and load-bearing capacity all change; the part must be re-sampled and color-matched, which carries the highest level of risk.
How long will it take for cost reduction to take effect?
Changes to the structure will take effect once the next batch is produced. Material substitutions require re-prototyping, which takes one to two months.
Do you have any similar packaging issues?Bring your existing files and talk to INNOPACKING · +86 13430308657