Cutting Shipping Costs Without Compromise

9/30/2025 Matthew Tilley

Transportation Logistics of international container cargo shipping and cargo plane in container yard

Fast, cheap, AND good: Consumers expect all three, and increasingly, so do business partners. However, meeting those expectations has never been more challenging as organizations wrestle with packaging costs, complex logistics, and mounting sustainability demands. The question is no longer whether companies must cut costs out of the system, but how they are going to do it without sacrificing quality or agility.

On a recent episode of the Produced + Delivered podcast, I spoke with Andrew Palmer, Director of Sales for RRD’s Label Platform, about practical strategies for reducing shipping costs. What became clear is that opportunities exist across the supply chain — in labels, in packaging, and in the processes that bind them together. It’s also clear that forward-looking companies are already taking advantage of them.

Labels: small adjustments, significant impact

Shipping labels may seem like a minor detail, but as Andrew explained, they are one of the few elements that appear at every stage of the process. Labels track raw materials, guide products through warehouses, identify cartons, and ensure that pallets move smoothly through logistics networks. So, optimizing labels can result in performance and efficiency improvements.

Companies often discover that their labels are either too large, too small, or are overengineered for their purpose. By making sure a label is appropriate for its product and application, organizations can reduce costs and prevent failures such as unreadable barcodes or labels that peel away in transit. Emerging technologies offer additional opportunities. Linerless labels, like RRD’s VersaTac™ Liner-Free Labels, for example, eliminate waste while contributing to sustainability goals, and RFID labels, like RRD’s VersaTac IQ™ RFID and Smart Labels, can reduce labor costs by streamlining inventory management and product tracking. Small adjustments like these compound into significant savings when scaled across an entire operation.

Packaging: reducing costs while elevating experience

Packaging is another area where incremental improvements can yield substantial results. Too often, large cartons are used to ship small products, a practice that increases material usage and inflates transportation costs by sending unnecessary air through the system. Some companies are addressing this with made-to-order packaging — cartons created for each specific shipment. Others eliminate outer cartons altogether, allowing products to ship in their original packaging or in alternative formats such as bags.

These practices don’t just reduce costs. They also create a better experience for the end consumer, making it feel intentional and premium.

Data as the driver of efficiency

Beyond materials, process efficiency is a powerful lever for reducing costs. According to Andrew, too many organizations discover they are printing duplicate labels or wasting resources by producing labels with unnecessary white space. Others realize, after closer inspection, that their processes are riddled with inefficiencies that data could easily expose.

The path forward begins with measurement. By analyzing operational data, leaders can make informed decisions about process improvements, supplier consolidation, or even broader shifts such as nearshoring and offshoring. In an environment where every dollar and every hour counts, relying on assumptions is no longer an option. The winners will be those who let data drive their supply chain strategies.

Sustainability that pays off

Of course, no conversation about packaging and shipping can avoid the topic of sustainability. While sustainable solutions are sometimes perceived as adding costs, Andrew emphasized that they can also reduce costs if implemented thoughtfully.

The key is to move beyond the buzzword. Sustainability must be tied to measurable outcomes — reduced material use, lower disposal costs, or improved recyclability — rather than being treated as an abstract aspiration. When approached in this way, sustainability becomes both a corporate responsibility and a driver of operational performance.

Why the right partner matters

Cost reduction in shipping is not a matter of making a single change. Instead, it’s about reviewing and rethinking the system holistically. That is where the right partner can make a difference. At RRD, teams of technical experts, material scientists, and process specialists work with clients to evaluate existing operations, test new solutions, and recommend changes that balance cost, performance, and sustainability. Importantly, these recommendations are material-agnostic, which means they are designed around what is best for the client rather than what is best for the supplier.

Staying flexible in a dynamic environment

Of course, the supply chain landscape is evolving faster than ever. What worked yesterday may no longer apply today. Andrew’s best advice to operations leaders is to seek out a variety of perspectives, both internal and external, to stay agile in the face of change. The ability to adapt quickly is now an essential skill of modern operations.