Industrial Packaging Waste Audit Checklist
Last updated November 2025
Step-by-step enterprise framework for quantifying packaging waste, uncovering cost savings, and aligning inventory with sustainability goals.
15-30%
Average packaging cost savings identified
2-3 days
Typical audit timeline (multi-site extends to 5 days)
$50K+
Annual savings captured within first 12 months
Pre-Audit Preparation (Weeks -4 to -1)
Gather Historical Data (30 days prior)
- ✓
Purchase orders & invoices
12 months of pallet, container, stretch wrap, and consumable spend by vendor.
- ✓
Inventory & storage reports
On-hand quantities, storage locations, carrying cost assumptions, and turnover.
- ✓
Waste hauler bills
Container sizes, pickup cadence, haul rates, tonnage, and surcharges.
- ✓
Shipping manifests
Outbound volume, shipment weight, destination mix, and damage claims.
- ✓
Damage & quality logs
Incidents tied to packaging failure, remediation costs, and customer complaints.
Assemble the audit team
- ✓
Operations lead
Owns daily packaging flow and can unblock data requests in real time.
- ✓
Procurement partner
Understands vendor contracts, rebate structures, and negotiated pricing.
- ✓
Warehouse supervisor
Provides floor-level visibility on handling practices and loss points.
- ✓
Sustainability/ESG lead
Optional but recommended to align findings with reporting requirements.
Prepare audit tools
- ✓
Measurement equipment
Tape measures, calibrated floor scale, calipers, moisture meter (for wood).
- ✓
Data capture template
Standardized log (spreadsheet or Repackify checklist) for every touchpoint.
- ✓
Photo/video documentation
Smartphone or tablet to record storage conditions, damage, or bottlenecks.
- ✓
Safety & PPE plan
High-visibility vests, gloves, eyewear, and lockout procedures for scale use.
Physical Audit — Day 1 (Receiving & Storage)
Receiving area assessment
- Grade incoming pallets (A/B/C) and document rejection or rework rates.
- Measure incoming container dimensions, tare weight, and note mixed SKUs.
- Track stretch wrap, strapping, and void fill usage per inbound pallet.
- Flag immediate waste: broken pallets, crushed gaylords, compromised totes.
Storage optimization review
- Conduct physical inventory of pallets, boxes, totes, and consumables by zone.
- Calculate total square footage consumed vs. available storage capacity.
- Identify obsolete or slow-moving packaging SKUs for disposition or resale.
- Inspect conditions (moisture, pests, UV) that accelerate packaging degradation.
Physical Audit — Day 2 (Usage & Disposal)
Production & shipping observation
- Shadow packing lines to document material pulls, wrap layers, and time per order.
- Capture per-shift consumption of pallets, boxes, labels, and dunnage.
- Note over-packaging triggers: oversized boxes, redundant wrap, excess cushioning.
- Log material failures causing stoppages, spills, or rework events.
Waste stream analysis
- Sort discarded materials into wood, OCC, film, mixed plastics, and metal.
- Weigh each stream to establish diversion baselines (lbs/shift and lbs/unit shipped).
- Quantify disposal cost by multiplying weight by haul rate and container fees.
- Document materials suitable for reuse, repair, or secondary market resale.
Day 3 Analysis & Synthesis
Calculate essential metrics
- Total packaging spend by category and vendor.
- Packaging waste as a percentage of total spend.
- Inventory carrying cost per square foot of storage consumed.
- Average packaging cost per shipment and per revenue dollar.
Quantify savings opportunities
Switch to reclaimed supply
40,000 pallets/year @ $8 new vs. $5 reclaimed → $120,000 annual savings plus landfill diversion credits.
Pooling program ROI
Eliminate repair, storage, and disposal costs; typical payback in 6-12 months after rollout.
Right-size packaging
Reduce void fill and wrap layers by 30% through cartonization and stretch wrap pre-set optimization.
Monetize waste streams
Sell Grade B pallets, OCC bales, and food-grade totes via Repackify marketplace partners.
Quick wins (0-3 months)
Negotiated vendor terms, SKU consolidation, and training to reduce over-wrapping.
Mid-term pilots (3-6 months)
Launch pallet pooling or off-site recycling pilots at a flagship facility.
Long-range initiatives (6-12 months)
Automated stretch wrap machines, returnable packaging programs, WMS integrations.
Common Findings & Mitigation Plans
Excess inventory levels
90+ days of packaging on-hand ties up capital and inflates damage risk.
Recommended action
Shift to vendor-managed inventory or consignment agreements targeting 30-45 days on hand.
Inconsistent quality checks
Accepting sub-grade pallets or compromised totes increases product damage claims.
Recommended action
Deploy receiving SOPs with grade criteria and vendor scorecards enforced weekly.
Fragmented specifications
Maintaining 10+ pallet or box dimensions complicates replenishment and raises waste.
Recommended action
Standardize to core SKUs and negotiate volume incentives across enterprise demand.
No reverse logistics plan
Reusable assets accumulate without a refurbishment or resale loop.
Recommended action
Contract Repackify buyback programs or build internal repair flows with KPI oversight.
Post-Audit Implementation Plan
- 1
Publish audit readout
Package findings for operations, finance, procurement, and sustainability within five business days.
- 2
Secure executive sponsorship
Align top three initiatives with budget owners and approve implementation timeline.
- 3
Launch targeted pilots
Test high-impact recommendations with a single SKU, lane, or facility before scaling.
- 4
Operationalize KPI tracking
Report monthly on cost per shipment, waste %, damage rate, and diversion metrics.
- 5
Schedule annual re-audit
Validate savings, capture new opportunities, and refresh executive alignment every 12 months.
Need expert support with your audit?
Repackify packaging engineers deliver on-site waste audits, produce actionable savings roadmaps, and negotiate reclaimed packaging supply so you can capture savings immediately.