Packaging has become an increasingly important part of supply chain management in recent years. The reason? It’s one of the ways that you can help make sure your products arrive at their final destination without damage, but it also helps increase the appeal of your brand and its product offering, which could encourage repeat purchases from your customer base. So how can you measure the impact of packaging on supply chain performance, and how do you identify what might be an effective packaging strategy in your supply chain? The answers to those questions are what we’ll cover in this article on the impact of packaging on supply chain performance.
Impact of packaging on cost
The cost to have a product packaged and ready for retail vary widely. Packaging can comprise 3 percent or less of the price that you pay for something, such as a water bottle or cereal box, or it can cost 50 percent more than what you’re paying for an item, like an electronic device. The actual cost depends on where in a supply chain a product gets packaged and how long it stays in that package before being sold.
Impact of packaging on efficiency
In order to understand what impact packaging has on your efficiency, you first need to understand how it affects your logistics. Logistics is defined as the process of transporting and delivering goods from a provider to a customer (Wikipedia). Understanding how logistics operate is vital to understanding how packaging impacts efficiency. In order for packages get from point A (manufacturing facilities) to point B (end customers), they must go through shipping and delivery services.
Impact of packaging on speed
Packaging has a large influence on speed, especially in developed markets such as North America and Europe. In fact, if you look at domestic shipments within these regions, you’ll notice that almost 60% of all shipments arrive within three days! But wait! This statistic includes local shippers who are generally transporting goods to areas that are less than 400 miles apart. So let’s cut out these local shippers and have a look at long-haul transporters.
Impact of packaging on safety
Packaging, although it might not seem like it, plays a critical role in making sure that your product gets from place to place in one piece. While some companies do produce packaging that doesn’t actually serve much purpose other than marketing, most containers are put together to protect their contents. A damaged container may mean broken or lost products and wasted money.
An important part of any company’s operations is its supply chain—the process by which raw materials are transformed into finished goods and shipped out to customers. This process involves many different steps, including production, distribution, shipping, and receiving. Supply chains can be complex systems with many moving parts; they require careful planning and oversight in order to work smoothly.
Standardization vs Lock-in Effects
The choice between standardizing and customizing can have implications for both supply chains and customers. While choosing to customize requires a longer design time for each product, it creates value for customers by allowing them to select features that are important to them. This can increase customer satisfaction because they feel as though their needs are being met.
However, customization also increases costs in terms of materials and labor because more effort must be put into producing each individual item. In addition, customization may lead to higher costs for consumers due to increased production costs or higher prices due to a decrease in economies of scale. Lock-in effects occur when a company decides to switch suppliers after having already invested heavily in its current supplier’s products.
When companies make major investments in capital equipment, oftentimes they make long-term contracts with manufacturers to ensure future support and maintenance of those items. Even if those companies choose to change manufacturers, then, they might still need parts or support from their previous suppliers—which can create lock-in effects.
Similarly, these effects can also be created among consumers and their suppliers. While standardization focuses on reducing costs and maintaining efficiency, the lock-in effect focuses on keeping the customer engaged and satisfied.
How Packaging Can Be Improved for Better Performance:
The product a customer is holding in their hand is only an end product of what happens throughout its entire supply chain – from raw material to ready-to-sell product. Packaging plays a significant role in controlling quality at every step, but it also has an enormous impact on how customers see a brand and ultimately experience a business. Successful companies develop systems that optimize quality, streamline operations and maximize potential cost savings by examining all elements of packaging at every stage of their supply chains.
Here are some ways businesses can improve packaging for better performance
- Inspect every unit before it leaves your facility. Every part of your packaging process should be controlled with accuracy and precision; if you do not inspect each unit when it leaves your facility, there is no way to ensure its condition when it reaches a customer’s hands. Poorly packed products could lead to damage or poor presentation upon arrival—potentially affecting sales and negatively impacting brand perception.
- Invest in reusable packaging options. Reducing waste is important for many reasons, including reducing costs and increasing sustainability efforts. Reusable shipping containers can help reduce costs associated with purchasing new boxes or containers every time a shipment needs to leave your facility.
- Consider different materials for different products and services offered by your company. Different types of materials require different handling methods during production, shipping and storage – so choosing appropriate materials is essential to ensuring safe transportation of all goods produced by your company.
- Design labels that can be easily removed without damaging the box or container. Labels protect products while they are in transit, but they must also adhere to certain standards set forth by government agencies and other governing bodies. If labels cannot be removed without causing harm to either label or box/container, then you may have a problem on your hands (literally).
- Monitor inventory levels regularly. It is crucial to keep track of how much stock you have on hand at any given time. This will allow you to make smart decisions about which products need more attention and which ones can wait until your next shipment arrives. For example, if one type of product sells out faster than others, consider switching up packaging colors or styles for future shipments.
The Atlantic supply chain comprises three distinct parts. The first part focuses on the Atlantic product packaging company itself. Its second part focuses on its customers. Customers include QVC, Procter & Gamble, Bass Pro Shop, and Williams-Sonoma. Atlantic also provides custom packaging for many major retailers. Wes Carter, president of Atlantic Packaging, said the company was looking for new ways to differentiate itself from its competitors.