For years, we’ve been telling anyone that will listen that packaging optimization is a must. But not only packaging optimization; transportation, warehouse and labor optimization too. “Get on board or you will get pushed out,” is the phrase we repeat to clients, competitors, investors and friends. Well, Amazon is about to make this a lot more real.
If you’re not using optimized packaging by August 2019—just 10 months from now—you stand to lose money
Don’t believe our take? You don’t have to. Here’s what industry experts have to say about the new program.
Frustration Free Packaging?
Amazon put a whole online experience together to get you excited about the concept. But don’t be fooled—there’s nothing nice about what Amazon is about to do to your profit margin if you don’t get onboard. Here’s what Jacquie Patterson (featured in the video), had to say about “Switching to Frustration-Free Packaging: “We can see a savings of up to 50% or more in material usage and in shipping volume.”
In the 10 years since Jeff Bezos started the Frustration Free Packaging initiative in 2007, Amazon has eliminated more than 500 million boxes and more than 244,000 tons of packaging materials through 2017. And good for them, they are leading the charge to save pack material, lost warehouse space, the shipping of air and wasted man hours too. In 2017 alone, Amazon reduced its packaging waste by 16%, the equivalent of 305 million shipping boxes. But the message to industry has been “…we’re just getting started.”
The aim of the Amazon FFP program
- Differentiate and optimize the customer’s experience
- Minimize the environmental impact of packaging
- Create packaging at the lowest delivered cost
Notice who isn’t on that list? You and your company. Who in your organization has eyes on these developments? Who will champion the changes needed to withstand this coming tidal wave?
System directed cartonization isn’t the answer
To some, FFP is all rainbows and unicorns. But here’s the tough part for your business: Amazon is using their stature to do what’s right for Amazon—save themselves money, improve their customer’s experience, and consolidate further market control. And we applaud that. But what might work in your favor this year, could very well work against you next year.
While many consumers have rose colored glasses on when it comes to the convenience and affordability of companies like Amazon, companies like yours up and down the supply chain have to scramble to make sense of, and profit from, the shifting business landscape.
Thankfully, there is something you can do to take back some control and safeguard your profits.
Let’s do it right the first time without leaving any savings on the table
At PLS, we are accustomed to helping companies tackle these types of challenges. How do we do it? It’s easier than you might think, and the solutions are close to home.
Using a small amount of data on your processes, costs and output, we are able to build a holistic model that will guide durable cost savings across all aspects of your business.
Remember, big companies like Amazon want you onboard for their profit, and they will force you to adopt their practices to safeguard their profits. Don’t get caught up in the wave of companies that blindly follow, only to see their profits get slashed.
An assessment of your business opportunities, based on your company’s data and your sector’s dynamics, is essential. We can help you gain this insight. And we partner with you to make sure the changes you implement, don’t result in increased costs in other areas. The cost savings that we help you generate are real and durable.