3 Ways A Crating And Palletizing Service Reduces Your Business Costs
While you can pack your products for shipping on-site, you can also outsource this work. For example, a crating and palletizing service will crate up your orders and put them on pallets ready to ship.
If you outsource these jobs, then you could benefit from some cost savings. How will you save money?
1. Reduce Your Packing Costs
If you crate and palletize your products, then you need equipment and supplies. For example, you might need a pallet-wrapping machine and multiple forklifts. You'll also have to pay for maintenance and repair. If a forklift breaks down, then you have to get it fixed.
Your materials supply costs will also be higher. You'll need suitable crates and packaging materials. You'll need a constant supply of pallets and wrap. If you use different sizes of crates for different products or order sizes, then you could spend a lot on these supplies.
If you outsource your crating and palletizing jobs, then you don't have these upfront or ongoing costs. You won't need to buy a pallet wrapping machine; you might not need any or as many forklifts.
Plus, you don't have to pay for crates and packaging supplies. You simply pay the company for each order you give them.
2. Reduce Your Payroll Costs
The larger your packing and shipping departments are, the more people you'll have to hire. If you crate up your own orders and put them on pallets, then your payroll costs will increase.
For example, you might have to hire people to crate up your products. You might need forklift drivers and workers who can operate your pallet wrapper.
If you need to work fast to get orders out, then you'll need more workers. If you put the same people on all these jobs, then you'll spend more time getting orders out because they can only do one thing at a time.
If you outsource your crating and palletizing, then you can keep your workforce lean. You won't need to employ as many people, so your payroll costs will reduce.
3. Minimize Shipping Damage Costs
If one of your shipments is damaged in transit, then you might lose money. If one of your workers didn't package a crate up securely or didn't apply effective pallet wrap, then you might have to cover replacement costs.
You should reduce your damage incidents and costs if you outsource your crating and palletizing. The company you use will have professional packaging experience. They know how to pack and palletize crates securely so that they don't get damaged in transit.
To learn more about how outsourcing these jobs can help your company, talk to crating and palletizing service providers.