Is your packaging optimized? These 3 little adjustments can reap big savings.
Did you know you can realize savings through packaging optimization? If you are looking to optimize your supply chain you need to start early with optimizing packaging. Packaging optimization is the process by which your packaging is analyzed through all relevant supply chain processes. These savings are evident in improved warehouse efficiencies and product handling, reduced freight costs, and labor reduction. There are opportunities to optimize packaging design in each of the following packaging areas: the product, the container the product is housed in for retail and the container that it is shipped in.
By reducing the amount of packaging materials needed per unit and designing the shipping case to fit pallets and trucks better, logistics expenses can be reduced considerably.
Three Packaging Areas You Should Be Analyzing
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The size of your primary packaging.
There is a ripple effect in supply chain costs, so even a small reduction of size to the primary packaging can affect costs throughout the supply chain. For instance, if you are able to reduce the size of the package you could very well increase the number of products in the shipping box. You can than fit more shipping boxes on a pallet, realizing savings in warehousing and transportation.
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The size of your shipping container.
We discussed primary packaging but secondary packaging can also make a difference. If the size of the container or box the product is shipped in can be reduced you may be able to add more product on the pallet and ship more product per shipment. Saving on space, shipping and labor. It is worth considering adding more box sizes to your shipping process. If a product is shipped in the right sized box you can save on inner packing materials as well as the realized cost of shipping in smaller boxes.
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The quality of your shipping container.
A higher quality / sturdier secondary shipping box may be the better choice for product protection and damage reduction. A stronger corrugated may allow you to stack more containers on a pallet, filling it more efficiently and saving on storage and transport.
These are just a few areas to consider for package optimization. Keep in mind, these changes should'nt be made lightly, but carefully analyzed and thoroughly tested. Any changes you make should not negatively impact the packaging’s ability to protect the product. The process of package optimization should lead to improved protection, efficiency and cost savings. Take into consideration all of the components of packaging and how they work together and work to optimize the system as a whole.