With rising operational costs affecting manufacturers across the UK, businesses are looking for strategic ways to reduce overheads without sacrificing quality.
One of the most effective solutions? Outsourcing your packaging needs to a reliable, local provider like Excel Contract Packing.
In this blog, we’ll walk through the specific savings you can expect by switching to an outsourced model and how Excel can help you achieve those savings efficiently.
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Save on Labour Costs
The Cost of Labor:
As of the latest figures, the average salary for a warehouse worker in the UK is now around £25,000 per year, driven higher by recent wage increases to the National Living Wage (TotalJobs).
This rise has a significant impact on employers, especially during peak seasons when additional staff are often needed to meet increased demand.
How Excel Saves You Money:
When you outsource to Excel, you no longer need to hire, train, or manage an in-house team for packaging.
Excel’s experienced staff handle everything, saving you on salaries, training, and employee benefits. This alone can contribute to a 10-15% reduction in overheads.
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Eliminate Equipment Costs
The Cost of Machinery:
Investing in high-quality packing machinery is a major expense, with costs ranging from £50,000 for basic setups to upwards of £550,000 for advanced automated systems (Packaging News).
And that’s without factoring in maintenance, repairs, and eventual replacements.
How Excel Saves You Money:
Excel already has state-of-the-art machinery, eliminating the need for costly equipment purchases.
By outsourcing, you gain access to industry-leading machines without any capital investment, maintenance, or upkeep costs. This can save you another 10-15% on overheads.
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Cut Down on Warehouse and Storage Expenses
The Cost of Storage Space:
UK warehouse costs have surged, with rates averaging £5-£6 per square foot (Savills UK).
With energy prices now around 30p per kWh, storing and managing products in-house has become increasingly costly. Rising insurance premiums add another layer of expense, with an average increase of 10-20% in recent years (Marsh McLennan).
How Excel Saves You Money:
Excel provides comprehensive storage solutions as part of our end-to-end packaging services, allowing you to offload the storage burden and associated costs.
By using Excel’s facilities, you can avoid expenses related to rent, electricity, insurance, and security for warehousing, leading to a potential 10-20% reduction in overheads.
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Reduce Costs with Streamlined Logistics
The Cost of Managing Logistics:
Coordinating your supply chain from end-to-end can be a headache, and any delays in shipping can result in a substantial revenue loss.
The average cost of a delayed shipment is estimated to affect revenue by up to 25%, considering customer dissatisfaction and stock shortages (Logistics UK).
How Excel Saves You Money:
Excel handles every stage of packaging logistics, including warehousing, labelling, and delivery. By streamlining these processes, Excel reduces the likelihood of costly delays and ensures a smoother, faster turnaround.
This saves you from the need to manage complex logistics on your own and significantly reduces the risk of lost revenue due to supply chain disruptions.
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Flexible Solutions That Scale with Demand
The Cost of Seasonal Scaling:
During peak seasons, companies often face additional hiring and overtime costs to meet increased demand. Having an in-house team means carrying these labour expenses even during slower periods.
How Excel Saves You Money:
Excel’s flexible solutions are designed to adapt to your specific needs, whether it’s a short-term boost for seasonal demand or long-term, consistent volumes.
With Excel, you avoid paying for idle staff during off-peak times and can rely on a scalable, cost-effective service that adjusts to your demands.
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Improve Cash Flow with Predictable Costs
The Hidden Costs of In-House Packaging:
Managing in-house packaging can lead to unpredictable costs. Equipment breakdowns, unexpected overtime, and variable shipping rates all impact cash flow, making it harder to plan ahead.
How Excel Saves You Money:
Excel offers transparent, predictable pricing, giving you better control over your expenses.
By eliminating hidden costs and stabilising cash flow, you gain peace of mind knowing your budget won’t be blindsided by unexpected fees.
Conclusion: How Much Can You Really Save?
Outsourcing with Excel Contract Packing provides manufacturers with a powerful way to reduce overheads by up to 20-30%, thanks to savings across labour, equipment, storage, logistics, and more.
Beyond cost reduction, you gain a trusted partner that prioritises quality, efficiency, and flexibility. Allowing you to focus on what truly matters: growing your business.
If you’re ready to explore the savings outsourcing can bring to your packaging operations, contact Excel Contract Packing today. Together, we’ll find a solution that enhances efficiency and protects your bottom line.
