Corrugated packaging is essential for many businesses, providing the final level of protection and security needed to safely store and transport their high value goods. As businesses grow, costs increase and it‘s important to monitor this to see if a better deal can be achieved. One way of reducing unit cost is to buy in  bulk. 

At ASC Direct, we help many customers buy packaging in the most cost-efficient way, and while ordering larger quantities of packaging at the same time saves money for some businesses, it won’t work for everyone. To make it easier to judge whether bulk buying would work for you, we looked at the reasons why it’s a great solution and some of the pitfalls you need to look out for.

1. Cost Savings

The most obvious reason to buy in bulk is to save money overall. There are usually efficiencies when smaller orders are merged into one single order and this can help the supplier plan production and buy material more effectively. All of this can mean a better unit cost for the buyer. However it does depend on the specifics of the order, and the mix of boxes required.

2. Consistent Supply

Having a steady supply of packaging materials is crucial for a smooth production workflow – businesses cannot efficiently store and transport goods without the best packaging to protect it. Bulk ordering means a large consistent stock with plenty of time to order more when needed, reducing supply chain disruptions and production delays.

3. More choice

When ordering in bulk, it may be possible to provide more tailored packaging as some elements become cost effective as a higher order level but unaffordable when only ordering a small amount. This can include processes like printing, where the base costs of printing boxes may be expensive for a few boxes but spread over a larger volume becomes a more affordable option. It’s worth bearing in mind that custom packaging can enhance brand recognition and provide a better customer experience.

4. Reduced Shipping Costs

Ordering in bulk can means fewer orders being delivered, which can lead to reduced shipping costs over time. By consolidating orders, businesses can take advantage of lower freight charges – the additional advantage being to reduce the environmental impact associated with frequent deliveries.

5. Efficient Storage

Having a large stock of corrugated packaging provides an opportunity for better organisation and efficient storage management. Businesses can allocate space more effectively, ensuring that packaging materials are easily accessible when needed.

Cons of Bulk Ordering Corrugated Packaging

Those are the benefits of being able to bulk order your corrugated packaging. But ordering in bulk won’t suit everyone - now we will look at some of the concerns you need to consider.

1. Upfront Costs

While bulk ordering will provide a cheaper per unit cost, the actual order will still be bigger and consequently a higher upfront cost. It’s essential to consider the benefit of the cheaper unit cost – and the other potential benefits shown above – along with how this will affect cashflow for the business before making the decision.

2. Storage Space Requirements

Bulk orders necessitate ample storage space, which might not be feasible for all businesses. Companies must ensure they have the necessary warehousing capacity to accommodate large quantities of packaging materials and be able to organise this space so the correct packaging is available when needed. Businesses must be organised to maximise the benefits – where it is useful, ASC Direct can help advise on best storage solutions.

3. Risk of Obsolescence

Packaging needs can evolve based on market trends, product changes, or rebranding efforts. Bulk ordering does present the risk of ending up with obsolete packaging if there are significant changes in product dimensions or branding. The risk of having packaging that cannot be used is an important consideration to weigh against the benefits of a cheaper unit cost, flexibility of ordering and continuity of supply.

Bulk ordering corrugated packaging offers numerous benefits, including cost savings, consistent supply, and customisation opportunities. However, it also comes with challenges such as upfront costs, storage space requirements, and the risk of obsolescence. Businesses must weigh these pros and cons carefully, considering their specific needs, financial capabilities, and operational constraints. By doing so, they can make an informed decision that optimises their packaging strategy and supports their overall business objectives.

Speak to the team at ASC Direct to find out whether purchasing packaging in bulk will help your business.