Some logistics and purchasing managers focus on cost optimization…at all costs. Any logistics specialist at Logistic Packaging will tell them that packaging optimization is more effective, because it has a positive impact on several areas of the business.
The goal of packaging optimization is to make the supply chain work:
- At an optimized cost
- Without product or reputation loss.
Why Is Packaging Optimization the Key to Reducing Costs Effectively?
Packaging plays a key role in any business that deals with product manufacturing, distributing and selling. Any product requires proper packaging even before it is completely assembled.
Spare parts, raw materials and component must be delivered in good condition, in packaging that ensures their integrity during transportation. Likewise, each product needs reliable packaging at each stage:
- When it leaves the production facility
- While being kept in a warehouse
- During transportation to the store or end customer.
Optimized packaging reduces the risk of damage and loss at each point of the product journey. Now, let us explain how we help our clients achieve packaging optimization in five steps:
Step 1: The Design Phase
At Logistic Packaging, we create both standard and customized returnable packaging solutions. Our R&D team follows each customer’s specifications for designing unique packaging solutions that fit their products.
For the standard packaging materials, we follow the best practices applicable at global level and the experience accumulated over years of working closely with our clients. Each type of packaging material is specifically designed to solve a challenge, such as:
- Hygiene/cleanroom pallets have smooth surfaces to ensure proper sanitizing
- VDA-KLT boxes have design features to allow handling by robots used in automotive factories
- Foldable crates for fruit and vegetables have perforated sides and bottoms to ensure proper ventilation and drainage of liquids.
Step 2: The Fit to Purpose Phase
Packaging optimization involves, among others, choosing the right type of packaging from the point of view of the loading capacity. In other words, your company should select packaging materials capable of carrying the average load when filled with products.
For example, a VDA-KLT box has a higher loading capacity than a crate for bread and bakery products having exactly the same size. The reason for this is that automotive parts stored in a VDA-KLT shipping tote are much heavier than a fully load bread crate.
Step 3: The Benefit/Cost Ratio Analysis
Many logistics managers continue to believe that they must choose the most expensive packaging solution in order to be certain that they will benefit from a top quality product. In reality, packaging optimization means finding returnable packaging solutions that meet the application requirements.
On the other hand, you should consider the purchase of professional plastic packaging materials as a long term investment. They are more expensive than wooden or cardboard packaging materials, but they also offer:
- A higher ROI
- A longer lifespan under intense usage conditions
- A reduced total cost of ownership (TCO).
Step 4: Meeting the Requirements of the Entire Supply Chain
Some companies have a very short and simple supply chain. Others, such as companies in the electronics and automotive industries, have a very complex internal logistic loop. In this context, your company needs packaging solutions that meet the requirements of every phase in the supply chain.
Specialized returnable packaging solutions are designed and built to meet all these requirements. We understand that tier 1, 2 and 3 must comply with their client’s rules in terms of how they deliver their products, and supply them with compliant packaging solutions.
Step 5: Sustainability
The last step in achieving packaging optimization is finding a reliable packaging producer for a long term and sustainable business relationship. Predictability in the quality of packaging materials and the ability to deliver the required quantity of products is essential for any company that starts working with a packaging producer.
Logistic Packaging has production facilities in strategic areas in Europe and a well organized network of distributors. This allows us to help all companies in the European Union and beyond achieve packaging optimization and stay profitable even during difficult times. Send us an email to get in touch with a packaging expert and start your own optimization process!