Packaging is the silent cost that eats into margins — most procurement teams pay 20% more than they need to because they're working with a single supplier relationship.
7 tactics to cut packaging costs:
1. Right-size your boxes Dimensional weight surcharges from couriers cost more than the box itself if you're using oversized packaging. Calculate void fill percentage. If you're using more than 25% dunnage to fill the box, you need smaller packaging.
2. Switch from 5-ply to 3-ply for lighter goods Most FMCG products under 2 kg can be shipped in 3-ply boxes. The BCT (Box Compression Test) requirement for 2 kg products is 80–100 kg — well within 3-ply range.
3. Eliminate unnecessary print colour Every additional Pantone colour adds ₹0.50–2.00 per box. Single-colour flexo print is often sufficient. If brand guidelines allow, eliminate print on secondary packaging (inner boxes).
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4. Standardise SKU sizes If you have 8 product sizes but only 2 box sizes are needed to cover 85% of orders, standardize. Larger volumes mean better pricing — and fewer supplier relationships to manage.
5. Source from the Bhiwandi cluster directly Bhiwandi-based manufacturers supply to Mumbai distributors who resell to you at a 15–20% markup. Going direct to a Bhiwandi manufacturer saves that margin. Use VyaparSethu to access 50+ direct Bhiwandi packaging manufacturers without a middleman.
6. Run a reverse auction annually Post your annual packaging requirement on VyaparSethu with full specs. Invite 5+ suppliers to bid. The competitive pressure typically drives 10–15% price improvement vs. renewal without bidding.
7. Pay in advance for 20% discount For a trusted supplier, 30–45 day advance payment often unlocks a 5–8% discount. If your working capital allows, this ROI beats most bank deposit rates.