One of the most crucial aspects of supply chain management is packaging. If you don’t employ best practices such as right-sized packaging, it’s time to find out how much you could save through labor, shipping, packaging optimization and more.
Packaging optimization is THE difference maker
IKEA has been heavily studied, but it bears repeating, the company is successful because they “hate air” in their packaging. And let’s be fair, they hate wasting money in the ripple effect that air has throughout the supply chain. Starting with the suppliers and manufacturers, right through to the sales floor and into the delivery van on the way to the customer’s home—every step amplifies small imperfections in packaging.
There are numerous ways that packaging optimization is beneficial for your supply chain and your bottom line. Of course, using less material is an obvious benefit, but there are many others including:
- Reduced spending on void fill
- Reduced shipping costs and/or increased network capacity
- Reduced environmental impact/increased green credibility for your brand
- Reduced labor costs in packaging
Interestingly, a hidden aspect of the supply chain that is also helped by reducing packaging costs is the return process.
Thanks to improvements in tech as well as algorithms, the ideal way to take full advantage of trimming down packaging is by moving to a right-sized packaging system. There are many systems out there. We have saved a range of pick, pack & ship operations, 3PLs and more using our own system called OBI.
Green packaging can mean cost savings
Customers and partners are demanding green packaging and generally more sustainable practices when it comes to packaging. And while it is a relatively new aspect of supply chain optimization, increasingly it needs to have an outsized place in your optimization gameplan.
Do it for the cost savings, do it for the time and labor savings, or do it for the kudos you’ll get from customers and partners. Whichever way you look at it, reducing packaging makes perfect sense, and the sooner you get started, the more your customers and partners will benefit.
Save now with right-size packaging
The economic outlook for the foreseeable future is good, but that doesn’t mean we won’t have hard economic times to weather. You have to ask yourself: is your supply chain lean and ready to compete?
Your success just might rest on optimization of packaging and the positive ripple effects it has up and down every inch of your supply chain. Get in touch on Facebook, LinkedIn or through our contact page to see how we can help your organization get a leg up by cutting down on packaging materials, costs and a whole lot more.
John Moore – Founder
Packaging & Logistics Solutions (PLS)