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Unlock Supply Chain Savings with Smarter Packaging Strategies
Transport packaging isn’t typically something you think about in supply chain management, but it plays a huge role in getting your products from manufacturing facilities in Southeast Asia to retailers and consumers in Europe and North America. Transport packaging optimized for the entire supply chain can have a significant impact on your bottom line. To start reaping the benefits of better packaging, start by implementing these three opportunities to optimize your transport packaging solutions.
1. Consider different materials for transport packaging
While you might think transport packaging needs to be heavy-duty or extra thick, well-designed transport packaging can actually include single-wall materials or corrugated materials that are thinner without sacrificing strength. This switch might not seem like it's worth spending time on, but with thinner, stronger transport packaging materials, you can not only save space in freight containers, but also reduce the number of damaged products that can't be sold to customers.
A managed packaging provider can also ensure that the materials used in your transport packaging are compliant with sustainability and sourcing regulations and that they meet changing customer preferences for sustainable products and packaging. If you're not sure whether your current transport packaging provider is using compliant materials, a transport packaging redesign is the perfect time to reassess and gain transparency around packaging materials.
2. Eliminate empty space: stop shipping air
When you ship your products, is there empty space in your transport packaging? Even a few inches of empty space can add up when you're freighting thousands of packages a year. Empty space also means your product has space to move around, increasing the chance that products or packaging are damaged beyond sellability. A thorough analysis should consider every part of the package system—how well products fit inside primary packages, how primary packages fit inside master outer cartons (MOCs) and how MOCs fit inside tertiary packaging.
By eliminating void space, you can effectively fit more products inside fewer shipping containers. In one example, a new packaging design decreased the number of shipped containers by 12% and resulted in $1.2 million in freight cost savings in just the first year. Right-sizing can also reduce or eliminate the need for void fill materials, resulting in additional cost savings.
3. Design for distribution: protect products and reputation
Products are handled many times throughout the supply chain before they ever hit the shelves where consumers see them, and they're handled even more frequently if the customer is buying online. This creates plenty of opportunity for damage to occur.
Replacing a damaged product often incurs higher costs than the original shipment— if you account for return shipping costs, re-issue or reimbursement, warehouse labor, additional packaging supplies, and the cumulative environmental impact. Damaged packaging can also result in lower customer lifetime value, especially when a customer's first experience with your brand is receiving a damaged product in the mail.
The idea of “designing for distribution” aims to minimize product damage by mitigating the risks of supply chain hazards. By tracing the entire product journey end-to-end and understanding what conditions are experienced along the way, packaging designers and engineers can create appropriate solutions that stand up to these various distribution hazards, including:
- Rough handling
- Dropping or falling off machinery
- In-transit/warehouse stacking
- Loose-load vibrations
- Temperature and humidity
Designing for distribution enables brands to achieve true packaging optimization. According to the Innventia AB Model (formerly known as the Soras Curve), optimization occurs where total costs and cost-of-damage curves intersect. Adjustments to one factor typically affect the other in inverse ways. By tailoring packaging to the specific hazards of your supply chain, from origin to destination, brands can minimize material costs and reduce the environmental impact of overpacking.
Why Smarter Packaging Matters Now
Every detail of your transport packaging—from weight to design—carries financial and environmental implications. Optimized packaging isn’t just about cutting costs; it’s about addressing a trifecta of modern supply chain priorities: operational efficiency, sustainability, and customer satisfaction.
Operational Efficiency: In a competitive market, the pressure to do more with less is unrelenting. Smart packaging solutions can help reduce freight costs, streamline warehouse operations, and improve shipping logistics by maximizing load efficiency. This translates into significant savings over time and smoother operations across the entire supply chain.
Sustainability: As global regulatory standards tighten and consumer demand for eco-friendly products grows, businesses must align packaging strategies with sustainability goals. Reducing packaging weight and eliminating unnecessary materials can cut carbon emissions, reduce waste, and enhance your brand’s environmental credibility—a factor that increasingly influences buying decisions.
Customer Satisfaction: Packaging is one of the first impressions a customer has of your brand, whether in a retail store or through e-commerce delivery. Packaging that protects products from damage while being easy to handle and dispose of creates a positive experience for buyers. On the flip side, damaged or overpacked products can erode trust and reduce long-term customer loyalty.
By focusing on smarter packaging, businesses can not only cut costs but also position themselves as forward-thinking leaders in their industries. As supply chains grow more complex and customer expectations evolve, packaging optimization offers a critical edge in driving financial and environmental value while building stronger customer relationships.
