With rising costs impacting FMCG, packaging efficiency offers a vital solution to protect margins and reduce waste
Like many other industries, FMCG is continuing to contend with inflation, rising energy costs, and the global political uncertainty that has carried over from last year. Add to the mix several significant changes introduced in the latest autumn budget, and suddenly, the business landscape is a much tougher terrain to navigate.
The most notable of these changes are a 6.7 percent raise in the national living wage for workers aged twenty-one and above and increased employer National Insurance contributions, set to add £5bn to the annual operational costs of FMCG businesses. On top of this, the industry faces an additional £3bn burden from Extended Producer Responsibility (EPR) payments coming into effect this April.
In this challenging environment, efficiency is key. That’s where Kite Packaging steps in. To remain profitable in a rapidly shifting financial landscape, businesses must improve their operational efficiency to maximise returns and protect profit margins. Though many factors contribute to this, packaging plays a critical role due to its influence on the entire supply chain.
Drawing on over 150 years of combined experience, Kite Packaging is an industry leader that has helped household names like Crown Paints overcome such challenges, saving them hundreds of thousands in the process. The carbon-neutral distributor is well-positioned to support FMCG businesses in reducing waste, cutting costs, and staying compliant with evolving regulations.
Since waste in packaging ramps up expenses and harms the environment, something as simple as the right-sized box for your goods can resolve these issues at the source.
Kite’s custom boxes eliminate void fill, lower material costs, and reduce transit damages by ensuring a perfect fit for your goods. If custom packaging isn’t viable, customers can choose from over 200 box sizes to meet their product protection needs. Incoming waste can also be repurposed into free, effective void fill using industrial shredders.
Other pack room machinery, like automated case erectors and bagging machines, accelerates packing while reducing pack times without requiring additional manpower. By automating these tasks, workers are freed up for higher-value activities, enhancing productivity and efficiency across operations.
Similarly, pallet wrapping machines eliminate the need for manual wrapping – a time-consuming process that often leads to inconsistent load security and potential damage. By applying film optimally, these machines reduce plastic waste, lower material costs, and enhance load stability. With Kite Packaging offering a wide range of stretch films containing at least 30% recycled material, businesses can reduce their Plastic Packaging Tax obligations while ensuring secure protection for palletised goods.
Businesses can further reduce operational costs with energy-saving solutions like heated anti-fatigue mats (below). Providing focused warmth with energy efficiency, they keep workspaces comfortable for just 50p per day – 14 times more efficient than standard warehouse heaters.
With low running costs, significant savings, and reduced carbon emissions, they offer a smart way to maintain productivity without the high expense of heating entire facilities. Additionally, these mats help businesses adopt a more sustainable model by lowering overall energy consumption.
These solutions not only reduce waste and improve efficiency but also deliver a fast return on investment – critical for businesses navigating financial pressures.
