Is packaging efficiency something you have issues with? Do you believe that you could make some improvements but are not sure where you need to make a change? You are not the only logistic manager worrying about these aspects.
We are living in times of fast and profound changes in the supply chain. The internet revolution was followed by the robotic revolution. Consumers found out that they can shop without going into a store. And companies found that they can outsource manufacturing and assembly to territories where the workforce is cheaper. All these aspects are key influences on the supply chain. And companies need to rethink their packaging and logistic operations and strive for more efficiency.
Lean Operations and Cost Cuts: the Right Way to Go About It
Over the years, we advised our clients to increase their packaging efficiency in order to save money and simplify their logistic operations. We are promoters of lean operations (kanban) and long term sustainability in the packaging solutions our client use.
The Logistic Packaging experts are concerned about finding the right solution for each client, not just the product that brings us the highest margin. We believe in long term relationships, not in closing a quick sale. This is why today we decided to share our know-how with you in terms of packaging efficiency.
Achieving Packaging Efficiency: a Continuous Effort
What we want to make clear from the start is that packaging efficiency is not something you put in place once and then you can stop worrying about. It is an ongoing work that involves:
- Auditing your supply chain periodically
- Discussing with your packaging supplier
- Involving all stakeholders in the decision to upgrade or change your packaging solutions.
With these ideas in mind, we will share five key steps that will help your company achieve packaging efficiency:
1. Include Packaging in Your Budgeting Decisions
Packaging efficiency is best achieved when you plan for investments in professional packaging materials. This means that you must always include this aspect in your overall operational budget, right next to the production costs and shipping costs.
In this way, you will never have to make “extraordinary” expenditures when you need to purchase new packaging materials, with a significant impact on your pricing policy.
2. Create a Packaging Diagram for Your Logistic Flow
This is a critical aspect for a healthy supply chain, not just packaging efficiency. It is especially important for industries with a complex logistic loop, such as the manufacturing, auto and electronics industries.
Raw materials need a specific type of packaging, such as large foldable containers. Small parts used in creating components need storage trays that fit in rack systems. Semi-finished products brought to the assembly line need EURO containers, nestable containers or other space saving and ergonomic packages. Thus, as you create a diagram of the packages you need for each step in your logistic processes, you will have a blueprint for improving packaging efficiency.
3. Work with Experts
Professional packaging is a core requirement of an efficient packaging strategy. You need packaging solutions that:
- Fit your needs
- Help you reduce operational costs
- Have a long useful life
- Help you reduce waste.
A professional packaging producer can supply you with high quality and innovative solutions which meet all three requirements. At the same time, building a solid relationship with a supplier will help your company have its own custom made packaging solutions that fit very specific needs.
4. Do Not Rely on Last Minute Decisions
Do you have a solution for every potential scenario? Can you manage a sudden surge in orders or a last minute order from a long term client? Is your company prepared to deal with disruption in the supply chain without having to cancel or delay orders?
In terms of packaging efficiency, the last minute decisions some managers rely on are not a good idea. It may work once or twice, out of sheer luck. But without provisions and a clear policy in place for emergency packaging situations (such as a container breaking right after being lifted with the forklift) your logistic operations will be fraught with delays and losses.
5. Use the Right Tools for Your Packaging Operations
At Logistic Packaging, we are advocates for replacing manual labor with logistic equipment at every step of your logistic operations. Relying on pallet changers, discharging systems for pallet boxes and forklifts helps you speed up your material handling operations.
At the same time, you stand better chances at using your packaging materials for a long time. Machines will not drop the loaded containers and plastic pallets, damaging them and the products loaded on them. Thus, your company will achieve full ROI for these materials faster, as well as packaging efficiency.
Logistic Packaging can help your company improve your operations and cut logistic costs by implementing professional packaging solutions adapted to your industry. Send us an email or discuss your project with our specialists by Skype video chat!