Cutting packaging costs is a clear win for manufacturers. Every dollar saved goes straight to the bottom line.

Unless those cuts create hidden costs in assembly, freight, or damage and returns.

That’s why we recommend you pay attention to both the per unit cost of your boxes and the total landed cost of your products—and how your packaging can help reduce that.

That way you can make sure that all your cost cuts actually hit your bottom line.

We put together this article to give you practical strategies to reduce your total landed cost through smarter corrugated packaging choices. By the end, you'll know exactly where to start saving.

Why “Total Landed Cost” Matters for Mid-Market Manufacturers

When you’re looking to cut packaging costs, price per box is just the tip of the iceberg.

Your true expense includes:

• Freight
• Storage
• Labor
• Damages
• Returns

Oversized boxes waste freight dollars. Slow-to-assemble packaging drives up labor costs. Inadequate packaging results in costly damages and unhappy customers.

These little packaging inefficiencies silently chip away at your profits.

But often there are small improvements you can make to your packaging that save money throughout the shipping process. That’s what we’ll look at below.

Design for Cube Efficiency—and Stop Paying to Ship Air

Freight carriers charge by dimensional weight, not just pounds. That means even light products can rack up big costs if the box isn’t right-sized.

So if you're not optimizing for cube, you're paying to ship empty space.

Poor cube utilization leads to wasted trailer space, more pallets, and higher shipping fees. Multiply that across thousands of units, and it adds up fast.

Smart tweaks to your box design can save money.

• Adjust dimensions to better fit your product and pallet pattern
• Use inserts and dividers to cut void fill and shrink box size 
• Test for stack strength to avoid "just in case" overpackaging

Optimizing your packaging for cube is one of the fastest, lowest-friction ways to lower total landed cost—without compromising protection.

Design for the Right Strength, Without Overspending

Many manufacturers default to making their boxes out of heavier corrugated board “just to be safe.” 

But thicker isn’t always better.

Overbuilt packaging drains your budget without any added benefit to you or your customers. The key is to match board strength to what your product actually needs. 

Our in-house packaging engineers help you dial in the perfect balance of strength and cost. 

That way you can choose the least expensive option that still makes sure your products arrive in brand new condition.

Prevent Damage and Returns to Stop Losing Money

Every damaged shipment costs more than just the product.

Replacement costs, extra freight, lost time, and unhappy customers all eat into your margins fast. And in many cases, packaging is the root cause.

Crushed corners, surface scratches, or broken components often point to design flaws:

• Boxes that are too big or too flimsy
• Products that shift during transit
• Inadequate cushioning or support

That’s why your boxes need to fit not only your products, but also the freight and warehousing conditions they’ll face in transit.

Improvements might include:

• Adding corner protection or internal dividers
• Choosing moisture-resistant coatings
• Reinforcing high-impact zones

These help stem the losses from damaged and returned products.

You’ll probably never get to zero damage. And even if you did, it would probably mean you’re overpaying for packaging.

But if more than 0.5% of your gross sales are getting tied up in damage and returns, it’s probably time to consider some packaging updates.

Save on Labor by Making Packaging Easier to Handle

Packaging that’s slow or awkward to work with quietly inflates labor costs.

For mid-market manufacturers running lean operations, every extra second per box adds up fast—especially over long production runs.

But you can speed things up without cutting corners. Start by rethinking how the box goes together:

• Use self-locking designs instead of glue or tape
• Simplify inserts so they drop in quickly and consistently
• Eliminate unnecessary steps like overstuffing void fill or double taping

Saving even five or 10 seconds per box can add up to thousands in savings over the course of months or a whole year. And those savings scale with you as you grow.

Our packaging designers show you which options will give you the best time savings without sacrificing product protection.

Cut Warehousing and Storage Costs with Smarter, Stackable Packaging

If your boxes take up more space than they need, you're paying rent on air.

Warehousing is expensive—especially when your packaging isn't designed for efficient use of space. Oversized boxes, poor stackability, and awkward dimensions can quickly crowd your shelves and racks.

Packaging that’s thoughtfully designed can help you:

• Fit more units per pallet
• Stack more efficiently without collapse
• Reduce the number of SKUs through modular sizing

Even switching to a collapsible or flat-packed design can make a big difference in how much packaging you need to store—and how often you need to reorder.

Better packaging doesn’t just travel better—it lives better in your warehouse, too.

Know the Numbers: How to Calculate Total Landed Cost Savings

The fastest way to get leadership buy-in on packaging changes? Show the math.

Total landed cost includes everything it takes to get your product into your customer’s hands—not just packaging material:

• Freight
• Labor
• Damage/returns
• Storage
• Packaging supplies like void fill or tape

Start by tracking your current numbers. 

Our team will help you spot the inefficiencies in your current packaging. Then you can compare your numbers against the projected costs of an optimized design.

Even modest improvements in multiple areas—say, a 5% reduction in freight, a 10% cut in labor time, and a 20% drop in damages—can combine into six-figure savings over the course of a year.

Because when you can see the cost clearly, you can cut it confidently.

Cut Your Total Landed Cost Today

Your packaging isn’t just a cost to be minimized. It can also be a tool to cut all the other costs of getting your products to your customers.

With the right design, you can reduce freight, save on labor, prevent product damage, and make better use of your warehouse space—all while delivering the same (or better) protection and customer experience.

The key is knowing where to look and how to optimize for total landed cost—not just box price.

Our packaging engineers work with manufacturers every day to uncover quick wins and long-term savings opportunities. We’ll help you spot inefficiencies, model the impact of changes, and design packaging that pays for itself many times over.

Let’s take a look at your current packaging and see what’s possible. Contact us today and we’ll show you what’s possible.