Question: do you use the right packaging materials in your business? Do you implement reusable packages or only one-way packages? And does it matter which ones you use? The answer seems obvious: as a careful and diligent logistics manager you researched and found the most cost efficient packaging option.
But is it really the right option? Or the initial calculations and the real life results you get when you look at the logistics budget are not quite similar? The truth is, as our team of packaging specialists at Logistic Packaging observed in many client cases, that the premises which led to the choice of a packaging solution are rarely long term ones. They are true for a short period of time and create savings only in the first few months after the implementation.
To help managers like you make the right choice, we prepared a detailed quiz with clear explanations for what you need to analyze. There are no right and wrong answers to this quiz – but in the end it will show you what type of packaging material is adequate for your company.
Question 1: Do You Manufacture and Ship Expensive Products?
Are you products luxury or premium items? Are they complex machinery parts or made of valuable raw materials? Is your company a part of a logistic loop which ends with the manufacture of a complex and expensive product, such as an automobile, an airplane or an electronic device?
Question 2: Do You Fully Amortize the Price of Packages?
Do you use the packages for a sufficient period of time to cover their purchase cost? Do you have to replace them frequently? Are they single-use packages, reusable packages with a short period of usage or long term packages solution? Do you have a clear total cost of ownership for each category of packages?
Question 3: Do Your Customers Have to Deal with Your Packages?
Do you arrange for the packages to be returned to you, or does the client have to dispose them? Can the client benefit from them as reusable packages or are they for single use and the client must pay a waste management supplier to pick them up?
Question 4: Do You Get a Percentage of Damaged Products for Each Shipment?
How large is this percentage? Is it an occasional or frequent occurrence? Do you have a clear estimate of the losses caused by products damaged in transit? Have you traced the cause of the damage – improper packaging?
Question 5: Do You Make the Best Use of Space in Warehouses and in the Trailer?
Do you have a chronic issue of too little space in your warehouse? Do you manage to properly fill a trailer with your products? Do the customers complain of the shipping costs?
Now for some answers:
Reusable Packages – the Solution for All the Issues Above
The questions above are the ones our packaging consultants at Logistic Packaging usually ask clients and the solution to all the issues is this: reusable packages.
These packages are sturdy – made from high quality materials, and designed to serve your needs for storage and transport for any kind of products, including expensive ones. Reinforced pallets or heavy-duty rigid containers are designed for heavy but sensitive products. ESD boxes and pallets are the only safe packaging material for electronic devices and parts.
Since you can use them for a long time, reusable packages will amortize their cost of purchase with the benefits you get from shipping products in them over and over again. At the same time, you will always get them back from the clients – thus they do not have to deal with one-way packages and they will value your business more.
Last, but not least, many models of reusable packages can be stacked or nested, thus saving space and allowing you to make a better use of the warehouse space and cut your shipping costs.
The team of experts at Logistic Packaging can help you make the transition to reusable packages. Send us an email or schedule a Skype video conference and we will show you how much money you can save by switching to reusable packages.