Twice a year — typically in spring and fall — smart warehouse managers conduct a thorough packaging inventory review. This isn't just about tidying up. It's about identifying cost savings, eliminating waste, and ensuring you have the right packaging materials for the upcoming season.
The Annual Packaging Audit
Step 1: Inventory Everything
- Boxes by size and estimated quantity
- Gaylords by size, wall type, and condition
- Accessories (tape, wrap, fill, liners)
- Pallets by type and condition
Document where each type is stored and how accessible it is. Materials buried behind other inventory effectively don't exist — they'll never get used.
Step 2: Assess Condition
Grade everything using the same A/B/C/D system used by the corrugated industry:
- A — Like New: Full structural integrity, clean, minimal wear
- B — Good: Some wear but fully functional for most applications
- C — Fair: Visible wear, repairs, or damage. Usable for light duty only
- D — Recycling: Beyond practical reuse
Be honest in your assessments. Keeping Grade D boxes "just in case" wastes valuable floor space.
Step 3: Match Inventory to Demand
Compare what you have against what you actually use. Common findings:
- Oversupplied sizes: You've been accumulating certain sizes faster than you use them. These should be sold to a buyback company.
- Undersupplied sizes: You frequently run out of certain sizes and have to expedite orders. Increase your standing order for these.
- Obsolete inventory: Products change, but box inventory doesn't always keep up. You may have hundreds of boxes for a product you no longer sell.
- Wrong grade for application: You might be using Grade A boxes for internal storage (wasteful) or Grade C boxes for shipping (risky).
Step 4: Take Action
Based on your audit:
- Sell surplus: Contact us for a buyback quote on excess inventory. We buy boxes and gaylords in any quantity.
- Reorder essentials: Replenish sizes you're running low on. Consider switching to used boxes if you haven't already.
- Reorganize storage: Put frequently used sizes in the most accessible locations. Use FIFO (first in, first out) to prevent aging.
- Discard carefully: Send Grade D materials to recycling, not the dumpster.
The Financial Impact
A properly managed packaging inventory saves money in multiple ways:
- Reduced waste: Using the right size and grade for each application eliminates overpackaging
- Space recovery: Clearing obsolete inventory frees valuable warehouse space
- Better pricing: Consistent ordering (rather than emergency buys) qualifies for better rates
- Fewer damages: Matching box strength to product weight reduces shipping damage
Most businesses find that their first thorough packaging audit identifies 15–25% potential cost savings. Annual audits maintain those savings and prevent inventory creep.
Make It Recurring
Don't wait for a crisis to manage your box inventory. Schedule semi-annual audits (we recommend April and October) and assign a specific person to own the process. Even a half-day investment twice a year pays for itself many times over.