This is where the concept of Total Cost of Ownership (TCO) comes into play – and it can save your company money, time, and headaches.
What is Total Cost of Ownership (TCO) in packaging?
TCO is the total cost of using a packaging solution throughout its entire lifecycle.
It includes:
Purchase price
Storage and handling costs
Transportation costs (weight surcharges, volume)
Risk of transport damage
Returns and claims
Disposal/recycling
Administrative costs
Example: Cheap wooden packaging vs. Heavy Duty corrugated cardboard
A customer in the export industry had used wooden crates for shipping machine parts for years. The wooden solution was cheap per unit, but:
The weight of the crates significantly increased freight costs
More units were damaged during transport (about 3% claims)
Warehouse handling required a forklift and two people
The wood needed ISPM15 certification for certain markets
After switching to FARUSA’s Heavy Duty corrugated cardboard,
the customer experienced:
✅ 62% lower weight per unit
✅ Zero damages after 6 months of operation
✅ 20% lower transportation costs
✅ Improved ESG documentation
✅ Better handling and faster packing
The new solution had a higher unit price — but a lower total cost.
🧠 Why it pays to think holistically
By focusing on TCO instead of unit price, you gain:
More stable deliveries
Less administration and fewer claims
Lower CO₂ emissions and easier ESG reporting
Better customer experience at the receiving end
🛠️ Ask yourself:
What does it cost if 1 out of 100 deliveries is damaged?
What is the value of reduced handling time per pack?
How much can you save on freight with lower weight and volume?
What is the cost of poor packaging in your customer’s eyes?
Need help finding some of the answers?
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