These days, more and more companies are turning to China for their manufacturing needs. In most cases, it is much cheaper to manufacture products in China than it is in the United States. At the same time, many companies are finding that they are spending a great deal of money on shipping. In fact, some companies do not see much savings after shipping the products to the United States and other parts of the world. One reason for this high shipping cost could be the packaging cube. It may sound too simple to be true, however, when companies reduce the packaging cube, they will find that their total production cost lowers greatly. There are a few reasons this is true.
Reducing the Packaging Cube Reduces the Need For So Much Material
When you are running a business which manufactures products in China and ships to the United States and other parts of the world, you need to protect the product during shipping. It is important that these companies get the product to its destination without being damaged. Often times, companies will try to overcompensate and use more packaging material than needed. Because the packing cubes cost money, all of the excess packing materials can cost more, making China manufacturing more costly than it needs to be.
Added Weight For Shipping
Packing cubes are relatively lightweight, however, when you use more than is needed to ship the products, you are costing yourself more money. When a product is shipped, the cost is determined by the weight of the entire package, not just the item itself. When using too much packing material, you are essentially adding unnecessary weight to the shipment. This can add up, costing your company more money which offsets the saving from manufacturing in China.
Unnecessary Man Power
The whole point of manufacturing in China is to save money. When it comes time to pack and ship the product, most companies have a specific department to do just this. Using too much packing material takes more time to get the shipment packed and sealed for shipment. When companies use enough packing material to get the product to its destination safely, and no more, packing the items does not take as much time. This can save greatly on man-hours needed for packing and shipping. The less materials used, the less people you need packing up the product, with fewer man hours paid out.
By using less packing materials, you can indirectly help to conserve resources. Less waste on the Earth is better for the planet. Using the minimal amount of materials will cut back on waste and make you a good corporate neighbor.
The reason most companies go to China to handle their manufacturing is the lower cost. When you are spending extra money due to the amount of packing material being used, you are defeating the purpose. The best way to save your company money is to use adequate packing materials, keeping your packing and shipping costs as low as possible. Working with ITI, you can be sure that your costs will be considered in every instance. We have been working with companies in the USA and China for 40 years to get products manufactured effectively and economically. Contact us today for a free quote to see how we can save your company money.