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The reason corrugated cardboard boxes become more expensive is an increase in the material cost. The cost of corrugated pieces is tied to the paper index, which is further associated with the transaction price set by paper manufacturers for their clients. Factors and elements that contribute to an increase in the cost of corrugated cardboard include starch, energy, diesel, strapping, and many more. The added costs of these materials are absorbed in the cost of the final product.

While working on annual budget numbers, companies usually plan for a nominal increase in packaging costs. Regardless of how careful the planning is, buyers and procurement teams often have to deal with the pressure to keep costs in check.

In this article, we will discuss some ways to avoid the increase in corrugated costs from affecting the overall budget and profit margin.

Choosing the right size

When dealing with higher corrugated costs, you have to pay attention to saving pennies on each box. it will help you save big in the end. That is where you can consider using custom-sized boxes. At first, you may wonder if ordering custom-sized boxes will increase corrugated costs even more. The fact of the matter is that it can help you save a significant amount of money because the product will fit in the box quite nicely. This way, you will not be using extra material. It can be a cost-saver in the end.

Increasing order volume

If you want to save on per-box costs, you can consider increasing the run quantity. Increasing the size of your run allows you to increase the number of boxes. The flat setup cost spreads quite nicely, helping you to reduce the overall per-box price. In simple words, a larger run can be more cost-effective compared to a smaller run. Increasing the square footage of your order will help you get the material at a lower cost.

Material efficiency

In many cases, a manufacturer uses too much of the protective material to get the product ready for shipping. Sometimes, a designer may want to go for a new solution. Changing the package style to reduce the amount of packaging material used inside the box can reduce labor costs as well. It will help you save on packaging costs from different angles.

Consolidating SKUs

You can achieve variable depths in one box by adding some extra scores to custom box runs. You can control inventory on the flow by reducing the number of SKUs.

Improving your board grade

Another way to save on corrugated costs is to change board grade combinations. You can choose from 19 different combinations of corrugated materials. While you may be convinced that you are using the best corrugated material for your application, you may need to look for other substitutes to find a solution that helps you save money without sacrificing quality.

If you are confused about the type of material, you may want to discuss your options with a packaging supplier or vendor. They will suggest you a more viable solution.