Saving Costs in Storage & Shipping
Unless you’ve been hiding under a rock (and we wouldn’t blame you if you were!), you’ll be aware that there is a big shift currently happening in the retail world. Consumer buying habits are rapidly changing, accelerated by the impacts of Covid-19. And if this trend remains, then direct to consumer e-commerce looks to be the future. With this comes notable changes needed across the supply chain.
Warehouses are now described as “gold sheds” by investors and redundant retail spaces are slowly being turned into urban logistic hubs. And as Turner and Townsend wrote, “warehouses for online fulfilment require up to three times more space than traditional warehouses” due to the handling and need for instant access of goods. With this increasing value of warehouses and the fierce competition between companies for limited space, comes the increasing cost of storage per square foot. This is where the benefits of Flexi-Hex® really come into play.
Flexi-Hex sleeves are incredibly compact in their natural state. In fact, one pallet of our classic Flexi-Hex sleeves is equivalent to 5 pallets of bubble wrap in volume. Translating that into costs, we can save companies 80% in storage fees. For example, in the UK companies are paying roughly £10 per sq ft for storage, so if you need 1000 sq ft to store 120 pallets of bubble wrap, this will cost you £10,000. By switching to Flexi-Hex, you could reduce this to just £2000. On a global scale, this could have even greater impacts with companies paying up to £17 per sq ft in Hong Kong and £16 per sq ft in New York.*
Flexi-Hex® Air, our recently launched sleeve for smaller, fragile goods is even more compact. Made from tissue paper, it is still incredibly strong thanks to its honeycomb structure but is simultaneously lightweight. You can fit up to 32,000 Flexi-Hex Air sleeves onto a single pallet! And of course, this not only reduces costs in storage, but also in shipping.
"Flexi-Hex can save companies 80% in storage fees."
With consumers taking to online shopping, they are wanting products not only faster (hello same day delivery) but also greener. A survey by YouGov in 2019 revealed that 50% of Briton’s would choose eco-friendly packaging even at a higher price, and two-thirds think all companies should be required by law to use eco-friendly packaging. Flexi-Hex sleeves are made from 100% recycled paper content, are curbside recyclable and biodegrade in six weeks. Alongside these eco-credentials, we’re proud to see that the beauty and flexibility of our sleeves have become an Instagram-hit and proven to elevate the consumer purchasing experience.
With companies’ having to become less reliant on the retail experience for consumer engagement, packaging is often the first interaction a customer has with a brand and it’s becoming an ever more crucial part of the purchasing experience. We believe our packaging is not only beneficial for brand perception and loyalty, but also helps drive storage efficiencies and reduce growing logistic costs. A win-win for the company, the consumer and most importantly, the environment.
"Flexi-Hex sleeves are made from 100% recycled paper content, are curbside recyclable and biodegrade in six weeks."
We are here to work with our customers, distributors, and partners to tackle the battle on single-use plastic consumption as efficiently as possible. It’s time to start saving your pockets and our planet with beautifully designed, sustainable paper sleeves not unnecessary pallets of air and plastic.
Want to know more? Get in touch at [email protected] or call us on 01326 702110.
*Source: https://www.turnerandtownsend.com/en/perspectives/warehouse-cost-index-2020/