It’s a fair question. Most packaging systems appear efficient on the surface. But hidden costs are often embedded in familiar processes that have gone unquestioned for too long.
According to McKinsey, operational inefficiencies account for up to 15% of total shipping costs globally — over $50 billion in losses each year. Packaging plays a quiet but significant role in that figure.
Here’s where the traps tend to hide:
Dimensional Weight: Paying to Ship Empty Space
Oversized packaging increases logistics costs through inflated DIM weight charges — often unnoticed until you analyse shipping data. Specs that once made sense may now be out of step with changing carrier rules or pallet patterns.
– These inefficiencies can raise logistics costs by over 20% (Cisco-Eagle).
Over-Specified Materials
Defaulting to thicker, heavier materials might reduce damage risk — but it also drives up material, shipping, and sustainability costs.
– Global packaging spend is $150 billion+/year (Specright). Even small adjustments can unlock major savings.
Labour and Waste Handling
Excessive packaging and re-pack / co-packing slows E2E efficiency and increases disposal overheads — but these costs are rarely tracked directly.
– Reusable packaging systems, or structures designed for re-pack reduce labor and waste handling over hundreds of cycles (James Ross Consulting).
Redundant or Excessive Packaging
Over-packaging adds weight and frustrates end users — especially in e-commerce where speed, sustainability, and unboxing matter.
– In fashion and accessories, return rates reach 30% (Shopify), often linked to poor packaging design.
Lack of Standardisation Across SKUs
Non-standard formats increase complexity, slow fulfilment, and waste warehouse space. Modularising across products can streamline costs and operations.
Regulatory and Environmental Inflexibility
Upcoming regulations (like the EU’s PPWR) will introduce stricter requirements around recyclability and labelling. Delaying action could mean rushed—and expensive—redesigns later.
Why Are These Costs So Hard to Spot?
They’re rarely caused by negligence. More often, it’s due to proximity: inefficiencies become invisible when you’re inside a system. Cost centres are often siloed, and the full lifecycle impact isn’t clearly visible.
What You Can Do Now:
- Map your packaging lifecycle
- Revisit legacy packaging specs
- Check for dimensional inefficiencies
- Talk to line teams about friction points
- Watch the regulatory horizon
If you don’t have the internal bandwidth to uncover these hidden opportunities, working with a partner like James Ross Consulting can accelerate the process.
Our clients have unlocked over €150 million in packaging and supply chain savings — while enabling real-time, data-driven decisions across global operations.
Interested in learning how? Reach out to us at info@jrconsulting.com