How the Price of Air Sparked a Packaging & Kitting Revolution

packaging and kitting revolutionThe price it costs for a small business to ship its products all boils down to the price of air. Customers don’t order the air; why should companies pay to ship it to them? That’s what IKEA figured out in 1955.

The flat-pack design revolution eliminated the air and sparked a cost savings revolution throughout the business world. IKEA realized that instead of building a bookcase and shipping it to their customer in a large box, there was another, more cost-effective option. They left the product deconstructed and sent them a smaller package with the shelves stacked one on top of the other along with an assembly instruction sheet. Building the product was now the consumer’s responsibility.

Shipping the bookcase pre-built means paying for empty space (air), a larger box, loads of filler and cushioning, labor for assembly, and transportation. It simply makes sense to ship all the parts of the bookcase together in a kit and packaged within a box with barely a millimeter left for the instruction sheet.

Just like any large company, IKEA started as a small business.  Their flat-pack model helped them grow to be a $30 billion-a-year worldwide business empire and has inspired other businesses to join the flat pack revolution.

Flat-Pack Cost Savers

  • Lower your warehouse footprint.

You can stock the same amount of your product in less warehouse space than before.  Or you can keep more of your product on hand for those sudden upticks in business.

  • Save big on less labor.

By eliminating product assembly, you can drastically reduce labor costs.  Your product becomes more affordable than your competitors’ product.

  • Buy fewer packaging materials.

Lower your shipping costs by reducing packaging sizes and eliminating filler.

  • Transport more, for less. 

Imagine filling a truck with 500 flat packs, instead of 50 preassembled products.  That’s just easier all the way around.

Is your company still paying to ship air? Contact Ohio Valley Goodwill Industries to speak with our packaging and kitting specialists and get a free tour of our facilities. We have a range of packaging solutions and kitting experts who can help you save big money, no matter what you’re shipping. Best of all, by partnering with us, you’re also supporting our greater mission to employ veterans and people with disabilities in our communities. With over a hundred years of business experience under our belts, we’re sure to find a solution that’s right for you.