The world of logistic and packaging solutions is evolving, but not all companies are keeping up with them. There are still too many unreliable packaging materials in transit, causing losses through damaged products, high shipping costs and hefty environmental penalties for failure to dispose of damaged packages in an eco-friendly manner. All these packaging materials are the so-called “traditional packages” which have been around for decades and continue to be used out of sheer inertia and thanks to long term relationships between companies and their packaging suppliers.
However, the current market conditions no longer permit companies to ignore the importance of efficient and cost effective logistic and packaging solutions. There is a break-neck competition in all industries, on all continents and every cent companies can save in their supply chain operations is valuable and can make the difference between success and failure.
The question is: have you made an audit of your logistic and packaging solutions recently and did you get positive results? We have prepared a list of pertinent signs that show that you should consider upgrading your entire stock of shipping containers and crates:
1. Increasing Shipping Costs
Although you are shipping roughly the same quantity of products overseas, you have noticed that with each shipment the fee is higher. As you check the tariffs, they have not changed significantly. So, what makes the difference in price? Could it be that your wooden pallets have got heavier over the years, after accumulating dirt and liquids?
Many people forget that wood is a fibrous natural material with a high degree of absorbency. Every drop of liquid spilling from broken packages or from wet floors will go straight into the pallet, making it heavier. By comparison, plastic pallets maintain the same weight during their entire useful life, do not suffer from chipping and are more reliable for intense use than wooden pallets. They also offer the lowest total cost of ownership and do not need repair works.
2. A Constant Rate of Damaged Goods
Even though your employees use all diligence in packing your products in containers and crates, there is a constant (or even increasing) percentage of damaged goods returned by your clients. These damaged goods are very expensive – both in money and in deteriorating reputation.
Older packaging materials are not very reliable and extra protection packaging materials are expensive and make your shipment heavier. The modern load securing accessories usually cannot be adapted of fitted to older models of metallic or wooden crates and containers. Shrink wrapping is both expensive and time consuming. The reasonable decision is to implement new logistic and packaging solutions which ensure that most of your packaged goods arrive in good condition at the destination.
3. Unused Packaging Materials Keep Piling Up
Wood, cardboard, metallic and other traditional packaging materials are both unreliable and bulky. As they accumulate over the years, they take up more and more space in your warehouse. At a certain point, the effort of juggling empty packages, stocks of products and loaded containers for shipping becomes exhausting. Your supply chain operations become less efficient, slower, and more expensive. The initial signal of your company’s downfall is the first delayed order to a customer. Unless you make a change in your logistic and packaging solutions, there will be more delayed orders and more unhappy customers.
Instead, replacing bulky containers with foldable and stack-nest plastic containers solves the problem of storage space, and also decreases your transportation costs on the return journey of the packages.
4. Repair and Replacement Costs Bloat Your Logistic Budget
It doesn’t cost a lot to repair a wooden crate. It’s no big deal buying a few more containers to replace the damaged ones. But these small expenditures add up and – within a few years, you will notice that they represent a noticeable percentage of your logistic budget. Fixing unreliable packaging materials is false economy, because even the time spent in the repair shop, when you cannot use the containers, represents a financial loss for your company.
The cost effective solution for your company is to invest in modern and reliable reusable plastic containers which are built to withstand intense use over a long period of time, without the need for repair works.
5. Less Enthusiastic Customers
One of the indirect results of using unreliable logistic and packaging solutions is losing your loyal customers. As your packaging costs go up, they will be reflected in more expensive prices for your products. On top of that, your customers will receive their orders with a percentage of damaged products and they will also have to eliminate extra packaging at their own expense. Is it any wonder that soon they will start looking for another supplier for the products you are selling?
These are signs that something is definitely wrong in the way you are running your supply chain operations. A professional logistics and packaging solutions company can assess your company’s situation, and make the most reliable and cost effective recommendations for reusable packaging solutions.