The process of packing the cargo is a vital stage of the supply chain process that is carried out by the freight forwarding companies or the fulfillment centers. Proper packing ensures that the cargo reaches its consignee in its intact condition and optimizing the packaging process has several benefits for the entire supply chain. In today’s blog, we will talk about the importance of the right packing in the supply chain.
What is packaging optimization?
Simply put, packing optimization is the process of packing that is effective, cost-efficient and time-saving. Small and mid-sized freight forwarding companies need to think of cheap and innovative packing strategies that would balance the safety of the cargo as well as the expenditure. Over the last couple of years, e-commerce has become the primary source of income for many freight forwarding companies. This has led to renewed stress on the aspect of the packing of parcels. The primary purpose of packaging optimization is to safeguard the cargo from any external damages right from the time when it leaves the warehouse until it is safely delivered to the customer. Therefore, logistics companies need to pay special attention to several aspects of the packing process including the selection of the packing material, design, and ensuring the sustainability of the packing process.
Advantages of packaging optimization
When it comes to selecting the right packing materials there is no dearth of options. Right from the outset, you need to decide on the packing material that would best protect the cargo you are moving. Using expensive and wasteful packing materials is absolutely pointless, since it just adds money to the shipping process which is not profitable. Most importantly, while optimizing the packing process, you need to select materials that allow for sustainability. Choosing plastic cartons, excessive paper, and plastic wrap, and cardboard boxes can have a serious environmental impact.
With so many logistics companies trying to find new ways to improve their sustainability, packaging optimization is one of the easiest ways of reducing the environmental impact of the shipping process. Using recycled paper and cartons not only saves you money but also makes your packing more sustainable. You should try to make package optimization a significant brand initiative that will help to drive value to your brand while lowering your operational expenses.
The most visible benefit that packaging optimization brings to the supply chain is amplified cost savings. The material you use will reduce a considerable chunk of your expenses. For example, choosing corrugated paper packing reduces the number of packing materials and brings down your expenses. Additionally, even a slight reduction in the size of the package could save a lot of expenses throughout the supply chain. Apart from saving the material cost it also allows you to reduce the net weight of the cargo and thus save weight on transportation.
For example, reducing just a quarter of an inch of the packing could translate into substantial saving along the shipping process. It would imply that more number of parcels can be stacked into a truck which in turn will help to reduce the number of truckloads. In the long run, it could lead to lesser costs, less weight, fewer truckloads, and less fuel.
Fewer chances of cargo damage
When it comes to e-commerce shipments, even the slightest damage to the parcel involves the cost of reverse logistics and replacement. Selecting the right packing mode and packing material that is strong enough to withstand the journey in transit will protect the cargo from multiple threats like careless handling in warehouses, ports, and airports, bulk transport, and weather conditions.
More efficient delivery
A proactive approach to packaging can optimize the entire shipping process and make your deliveries more effective. Rethinking packaging from a delivery perspective could help you save plenty of money annually.
Better labeling and tracking solutions
Supply chain management is all about making sure that the client is satisfied with the cargo they receive. Packaging optimization also allows you to enhance tracking solutions and thus speed up the entire shipping process. Automating the packing process with the use of personalized shipping labels and product tracking software. Optimizing product traceability helps the supply chain in several ways including streamlining stocking, effective delivery, better customer satisfaction, and minimizing redundant packing expenses.