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July 11, 2016

Are You Paying to Ship Air?

Shipping in Our 48″ X 40″ World

What if you could enjoy increased warehse efficiencies of 60% and shelf efficiencies of 50%? Those are dramatic numbers and add considerably to the bottom line. Those are the numbers experienced by Smart Balance when they switched from a round tub, to a square container.

What is the secret? It’s no secret at all and any manufacturer can take advantage of the same opportunities.

Today, we live in a 48” X 40” world. That’s the standard shipping pallet size and taking advantage of this can have a dramatic impact on your business.

It makes sense. Just think of those round tubs. Stacked beside each other leaves pockets of air that take up volume in shipping. If you think about it, when you ship round tubs you’re paying to package, ship and store air.

What about the expense of conversion? It’s a one-time cost and can be much lower than you think, especially if you package your conversion with other packaging-related efficiencies.

Are you using the most efficient plastics technology? Thin wall polypropylene is the new technology that uses less resin therefore reducing your packaging weight, saving you money on shipping but is also capable to withstanding freezer grade applications. Using less resin obviously also saves you money on raw materials.

There are many things to consider when you adjust to the 48 X 40 realities of today’s world.

This is one way we can help you save money. To find out how we can help you compete against larger giants, watch for our next email or better yet, sign up to learn.

Smart Balance did the calculations and the conversion. The company switched over from 4.5-in. -diameter round tubs to 4-in.-wide square tubs.
Smart Balance’s move freed up valuable refrigerated warehouse storage space as well as optimize in-store shelf display space. The company calculated that the switch would increase warehousing efficiencies by up to 60% and shelf efficiencies by 50%. Grocers should be able to stack 60 square units on a refrigerated shelf in the same space where only 40 round units could have fit. They also gained a more prominent bill-boarding and shelf facing, going from 10 rows with the round to 12 rows for squares in the same space, and with much more prominent brand messaging with the new container style.

Converting package design to take advantage of storage and shipping efficiencies need not hamper creativity in package design: it can stimulate it. Call us and find out how.