Is Your Business Paying to Ship Empty Space?
When it comes to packaging, it’s simply viewed as a necessary operational cost for most companies.
But with rising courier charges, material costs and growing pressure to reduce packaging waste, businesses are beginning to look more closely at how efficiently products are actually packed and shipped.
One of the most common issues is oversized packaging.
A product may be relatively small, but the carton or shipping packaging used to transport it can be considerably larger than necessary.
That can have consequences beyond simply using more cardboard or plastic.
What does "empty space" actually cost?
Oversized packaging can contribute to:
higher courier or volumetric charges;
unnecessary packaging spend;
increased storage requirements;
lower vehicle and pallet utilisation;
increased transport impacts; and
greater use of void-fill materials such as paper, bubble wrap or air cushions.
For businesses shipping significant volumes, relatively small improvements to packaging efficiency can potentially translate into meaningful operational savings.
Packaging minimisation under the PPWR
Packaging minimization is also becoming an increasingly important consideration under the EU Packaging & Packaging Waste Regulation (PPWR).
However, businesses should distinguish between the commercial opportunity to reduce packaging waste today and specific PPWR minimisation requirements that apply from later dates.
The PPWR establishes a general principle that packaging weight and volume should be limited to the minimum necessary for its functionality, taking account of factors such as safety, hygiene and consumer acceptance.
Specific requirements and restrictions apply at different stages, including requirements concerning certain packaging formats and, from 2030, restrictions relating to empty space ratios for certain grouped, transport and e-commerce packaging.
This means that an SME does not need to wait for a future regulatory deadline before reviewing packaging efficiency.
Reducing unnecessary packaging can make commercial sense today.
Where can SMEs find opportunities?
A practical packaging review can look at several areas.
1. Carton size
Could a smaller carton safely accommodate the product?
Even a modest reduction in carton dimensions can make a difference where products are shipped in significant volumes.
2. Void-fill materials
Is additional material being used simply because the outer carton is larger than necessary?
Reducing the space around a product can reduce the need for:
paper fill;
bubble wrap;
air cushions; and
other protective void-fill materials.
The objective should not be to remove protection that is genuinely required. The focus is on eliminating unnecessary space and material.
3. Standardising packaging formats
Businesses sometimes use a large number of different carton or packaging sizes.
A review may identify opportunities to standardise formats without compromising product protection.
This can simplify purchasing and inventory management as well as reduce packaging waste.
4. Pallet utilisation
Packaging efficiency doesn't stop at the individual parcel.
The dimensions of cartons and cases can influence how efficiently products can be arranged on pallets.
Better pallet utilisation can potentially reduce:
the number of pallets required;
storage requirements; and
transport movements.
5. Product-to-packaging ratio
One useful starting point is simply to compare the dimensions and weight of the product with the packaging used to transport it.
Where there is a significant difference, there may be an opportunity to investigate whether the packaging can be redesigned or reduced.
Don't confuse less packaging with better packaging
Packaging reduction should not mean compromising the product.
Packaging performs important functions including:
protecting products from damage;
maintaining hygiene;
preventing contamination;
facilitating handling and distribution; and
communicating information to customers.
The objective is therefore not simply "use less packaging".
It is:
Use the minimum packaging necessary to perform the required function effectively.
This is particularly important when assessing packaging minimisation against the PPWR.
What should an SME measure?
A simple packaging review does not necessarily require sophisticated software.
Businesses can start by recording:
product dimensions;
packaging dimensions;
packaging weight;
product weight;
packaging material;
quantity shipped;
number of packaging formats used; and
courier or transport costs where relevant.
For e-commerce businesses, it can also be useful to examine the relationship between packaging dimensions and the charges applied by carriers.
This can help identify where packaging design may be creating a disproportionate transport cost.
A practical example
Imagine an SME shipping a product that measures approximately 20 × 15 × 10 cm.
If the product is consistently shipped in a carton measuring 40 × 30 × 20 cm, the business may be using considerably more packaging than is necessary.
The larger carton may also increase the volume used in transport and, depending on the carrier's charging model, potentially increase the shipping cost.
A packaging review could consider whether a smaller format would still provide sufficient protection.
If the business ships thousands of units each year, a small change in packaging dimensions could produce a meaningful cumulative saving.
What should an Irish SME do now?
A useful starting point is to select a sample of frequently shipped products and:
1. Measure the product
Record the dimensions and weight of the product itself.
2. Measure the packaging
Record the external dimensions, weight and material of the packaging used.
3. Identify void space
Consider how much unused space exists once the product has been packed.
4. Review transport costs
Establish whether packaging dimensions influence courier, pallet or other transport costs.
5. Identify practical alternatives
Consider whether smaller cartons, fewer packaging formats or reduced void-fill could achieve the same level of product protection.
6. Calculate the potential saving
Consider both the packaging saving and any potential reduction in transport, storage or handling costs.
The regulatory opportunity
Packaging efficiency can therefore be viewed from two perspectives.
Commercially, reducing unnecessary packaging can potentially reduce material, storage and transport costs.
From a regulatory perspective, understanding packaging dimensions, weight, composition and functionality can help businesses prepare for applicable PPWR packaging minimisation requirements.
The two objectives can complement each other.
A packaging review carried out for cost-saving purposes today can also help a business build better packaging data and identify potential compliance issues before future requirements take effect.
The key takeaway
Packaging does not have to be an unavoidable fixed cost.
For many SMEs, there may be opportunities to reduce packaging material, transport costs and storage requirements simply by understanding how products are currently packed and shipped.
The starting point is straightforward:
Measure what you use, understand where the empty space is, and establish whether it is genuinely necessary.
Reducing unnecessary packaging can be good for both the bottom line and resource efficiency — while helping businesses prepare for the evolving requirements of the PPWR.
TrailZero helps Irish SMEs review packaging efficiency, identify waste and cost-reduction opportunities, and understand how packaging practices relate to evolving regulatory requirements.
Need help reviewing your packaging efficiency? Contact TrailZero for practical packaging and sustainability support.
