shipping-optimization-supply-chain

Packaging Optimization Is Key to Big Supply Chain Benefits

If you thought that minor changes in your supply chain practices couldn’t yield big results, think again. A recent Chain Store Age article highlights the benefits of packaging optimization in an effort to get the most value out of your supply chain.

shipping-optimization-supply-chain

From the article:

In today’s data-driven world, there are now ways to analytically assess and optimize the size and shape of boxes that are shipped around the world. Understanding the optimal size and shape required has multiple positive impacts. First, it reduces the amount of corrugate required. Second, it reduces excess space (“air”) in the box which results in less damage. Third, it improves the density of the goods being transported (e.g., more packages in a truck) which results in few trucks and therefore lower freight costs. And lastly, less corrugate, less filler, and fewer trucks equals sustainability benefits.

However, packaging engineering is not typically part of most supply chain organizations’ strategy and physical distribution is not taken into consideration when designing consumer packaging. Traditionally, the focus is on consumer appeal, as expected, but retail supply chain specialists should be taking a closer look at packaging design as another way to optimize the supply chain.

Other examples and success stories are plentiful, but it is our experience that only a minority of companies have dedicated the time to explore the potential. Thinking outside the box as it relates to your packaging design is only going to grow in importance as retailers continue to realize the cost savings, supply chain efficiencies and sustainability benefits of employing a smart packaging optimization strategy. As U.S. chains increasingly focus on international markets for growth, looking for ways to streamline their in-country supply chain will be another tool to compete with local competitors and capture some of the online retail sales that are expected to exceed $1.2 trillion* globally this year.