The automotive aftermarket is one of the busiest retail niches. The economic crisis of 2008-2009 has changed the consumers’ purchasing habits, especially for expensive products such as cars. The general trend persists even today – the useful life of a car is prolonged as much as possible by replacing and upgrading various parts.
Car Parts – from the Very Small to the Very Large
The average car parts retail usually orders, handles, and ships within a year cover every single element that makes up an automobile. The automotive aftermarket retailer who contacted the packaging experts at Logistic Packaging was no different from the average: the company receives constant orders for anything from brake discs to steering wheels or even car seats.
The key problem of the logistics manager of the client was finding a space saving and efficient packaging solution to fit the large variety of products the company has to procure from suppliers and ship to end clients. A single batch of orders usually includes both very large and very small car parts.
Standard packaging options, such as VDA-KLT containers, Euro containers and Galia boxes – although approved packaging for the automotive industry, did not represent an adequate solution. The mix of very large and very small products could not be arranged in the container in a space saving manner.
Extra Costs for Logistics Operations Stunt the Potential Growth of the Business
The result of the inability to pack products in an efficient manner was:
- High shipping costs
- A significant percentage of damaged products in transit
- The inability to increase market share and offer more competitive prices to the customers.
Every attempt at mitigating the packaging problem by the company’s logistic manager was faced with the same seemingly impossible challenge: finding packaging materials that can fit both large and small products, sturdy and sensitive products.
The only alternative option would be for the company to order different types of packaging containers and boxes, for each specific range of products. However, this would have been an expensive choice, and one which did not guarantee a decrease in the logistics costs, as the company never had two similar types of orders. Thus there is absolutely no possibility of predicting the frequency of shipping for each type of product.
Logistic Packaging Experts Weigh In
The packaging experts at Logistic Packaging understood that this was a special and difficult problem, one which standard packaging solutions could not solve. At the same time, customized packaging materials were also inefficient, given the wide range of product sizes.
The ideal packaging solution had to be adaptable on the spot for every specific order, creating packing units adequate for the combination of large and small parts. The only type of product to answer this requirement is actually a popular accessory: plastic pallet collars.
Plastic Pallet Collars: Build Packaging Units on the Go
The principle for creating plastic pallet collars was that warehouses and distribution hubs have to deal with a wide range of orders to pack and ship: from very bulky to very small and delicate products. In such a situation, plastic pallet collars can be easily attached to a plastic pallet and go up, layer by layer, until all the products are tightly and efficiently packed.
This solution seems to be too simple to be real, but many companies are using pallets and pallet collars, topped with a pallet lid, as their regular packaging solution for order picking. The plastic pallet collars create a solid and reliable packing container once placed on the pallet. They have a secure lock-in system, which allows warehouse workers to create and dismantle a packing unit in a very short time.
The Outcome: Improved Logistics Operations and Costs
The automotive aftermarket retailer accepted the solution presented by the Logistic Packaging, together with various dividing system and textile dunnage. This combination of packaging materials allows the retailer to place sensitive items in the same packing unit with other products, without causing them any damage during transportation.
This flexible packaging solution proved to the right choice for the car parts retailer. The company has already noted a significant decrease in the percentage of damaged products in transit. Also, they were able to stop searching for packaging materials and experimenting with various containers and boxes.
Instead, the time and money thus saved are put to use creating smart marketing strategies and improving customer care services in order to increase their market share to its full potential.
Plastic pallet collars are just one product of the full range of professional packaging solutions you can find at Logistic Packaging, together with expert advice to solve any logistic problem, no matter how complex. Schedule a Skype video call with us or send us an email with your packaging project!