“Package Optimization” helps the business reduce both the production and transportation cost.
That, consequently, enbles the efficiency in Total Supply Chain !!
In case you are trying to find a way to optimize your supply chain and are perhaps thinking of ways to reduce cost or lessen work processing time at every step in line with past case study findings which frequently dwell on shipping, storage and production of goods our companies sell, well, has anyone ever paid attention to the packaging of those goods?
Product packaging is often overlooked when it comes to supply chain and logistics while, in fact, it plays a key role in the delivery as well as production processes. Thus, in the context of supply chain management, package optimization can help save both time and cost.
What, then, is package optimization?
It’s not surprising if you have never heard the term before because many companies leave packaging decisions to designers or marketing experts who understand customer needs and know how to make goods on the shelves salable. Of course, this can be done in exchange for higher cost, more complicated production process and longer time.
Package optimization involves the supply chain expert’s method to make packaging more supply- chain-friendly that requires minimal modifications in the way products are packaged while emphases are put on less time as well as production and shipping costs reduction. Perhaps you are wondering why? Well, let’s look at the four top reasons for package optimization.
1. Raw Material Optimization
The packaging materials being used can both positively and negatively affect your supply chain. Using materials that are expensive, wasteful or difficult to use means an increase in cost and time. But, at the same time, you don’t want to reduce your product and packaging quality and/or hurt your customers’ perception of your brand. Actually, you can change the packaging materials without your customers’ noticing (but good quality must be maintained).
As plastic containers or cardboard boxes could have a severely detrimental effect on the environment, many companies are looking for ways to conduct businesses that are more environment-friendly. Thus, package optimization is seen as an alternative enabling you to proudly say that your business is environmentally responsible based on a wide range of measures, be they material optimization, reduced carbon dioxide (CO2) emissions, less use of thin plastic boxes or more use of recyclable packaging materials. Aside from saving time and money, this can create a positive image for your environmentally responsible business.
3. Easier Transportation
Preparing cargo for shipment, you must take into account cargo size and weight which involves not only product weight but also that of packaging materials. Optimized packaging can allow for more space and weight for shipment while unnecessary excess you could be wasting your money on can be eliminated. For example, a change in size (downsizing) or shape of packaging can allow for more cargo being shipped
4. Right Package Optimization for Your Products
In looking for the right packaging way for your products, you should take into consideration both complexity and efficiency. To reduce complexity, you want to have as many similar packages as possible but, to improve efficiency, you’ll need to find the most suitable package of each type of your products. For companies with a wide variety of products, this can be very difficult to find a balance point. At any rate, it cannot be avoided as suitable packaging applicable to diverse types of products can reduce delivery costs while allowing for more space and weight with each shipment of cargo.
No matter what industry you are in, package optimization is crucial for both your business and the environment. Take time out to determine whether you have achieved package optimization for your products. If so, you are bound to realize a positive change in your supply chain.
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Compiled by BLOG.SCGLogistics
Reference and picture credits: cerasis.com, pixabay.com