Online stores are experiencing the fastest paced growth of all types of retail businesses. In the span of just two years, online shopping changed from convenience to necessity. And even after brick and mortar stores were open for customers again, most of them preferred to keep making their purchases from the comfort of their homes. In this case study, we want to showcase the benefits of space saving returnable packaging for online stores, especially for the internal logistics – the key to ensuring on time deliveries to clients.
Online Stores Need to Speed Up and Optimize Their Internal Logistics
From several to hundreds of orders placed every day, many online stores are still trying to figure out how to improve their operations. They cannot break their next day delivery policy. They cannot risk getting too many returns because the orders are wrong or incomplete.
These are facts many online store managers learned at a high cost for their business and brand image. As professional packaging producers and reliable suppliers for all companies, we want to help as many managers as possible avoid this issue. And this is why we were ready to take on a challenging packaging project: optimizing the internal logistics of a popular online store.
The Client’s Problem: New Technological Upgrades Perform below Expectations
Started as a small business, our client’s online store experienced an unexpected growth during the COVID pandemic. Through strategic partnership, the business expanded its range of products from gadgets and computers to a wide range of consumer electronics and appliances.
Thus, the client invested a large part of the profits in the modernizing of their distribution hub. From smart handheld devices for order picking to conveyor belts sending packaged orders to the loading bay, the internal logistics of the store was completely overhauled. But the benefits of this technological upgrade were still below the forecasts.
Logistic Packaging Experts Identify the Issue: Outdated Packaging Materials
When the Logistic Packaging consultants made a tour of the client’s facilities, the problem became obvious: the packaging materials were the same the online store used when most of the order picking work was manual.
The bulky crates and unreliable cardboard boxes were absolutely inadequate for the conveyor belts, robotized picking machines and loading equipment. Thus, the employees had to stop the conveyor belt and delay trailer loading because boxes would break down or fall.
Our Recommendation: Implementing Space Saving Returnable Packaging
During the inspection, our specialists also noted many areas that could be put to better use. However, they were filled with empty packaging materials – some of them damaged, waiting to be picked up by the waste management company.
Based on these observations and the experience we developed in the online shopping sector, we recommended a mix of space saving returnable packaging solutions:
- Nestable containers with lids for distribution
- Bale-arm containers for order picking
- Non-Euro nestable boxes for items of atypical sizes.
Key Benefits of Using Space Saving Returnable Packaging
Professional plastic packaging is the new norm for all businesses. They have a sturdy build and have a long lifespan, resulting in significant savings for businesses. Also, these space saving packaging solutions offer many specific benefits that solve the client’s issues:
- They have a flat bottom ensuring a smooth and silent movement on conveyor belts
- Nesting empty containers reduces their volume by up to 70%, saving storage space
- When full, the containers form a stable stack in the trailer
- The containers can be customized with barcodes or RFID labels to improve order picking and traceability.
The Client’s Feedback
Logistic Packaging offered assistance to the client during the implementation phase. We also kept in touch to evaluate their satisfaction with the choice. Several months later, the online store already experienced improved internal logistics.
Employees became more productive while preparing orders. Shipments were ready ahead of time, allowing trailers to leave faster, making space for new ones to be loaded. On the other hand, the online store received many positive reviews and high ratings from clients, mostly owed to its fast deliveries and integrity of all orders.
At Logistic Packaging, we believe that there is always room for improvement in your logistic operations. We have the know-how to identify and correct any problems by implementing space saving returnable packaging solutions that fit your business needs and help you reduce costs. Send us an email and let our experts optimize your supply chain!