Why Packaging Is A Vital Part Of Your Supply Chain Management

Product packaging is an important part of product supply chain. Not only does effective packaging protect goods from getting damaged, but it also makes for more efficient product distribution and helps promote products in a competitive marketplace. Unfortunately, packaging is an afterthought in most supply chain management systems.

Seemingly small adjustments and alterations in the product’s packaging can completely change how it’s stored and distributed. Let’s see how efficient packaging can affect supply chain in areas like warehousing, logistics, etc.

The Design

Good design and functionality are correlated. Two design elements that should be kept in mind are:

1. Identification — A well identifiable product will improve the supply chain management cycle immensely. So, it is vital that important information, such as barcodes and RFID, are prominently displayed on the product’s packaging. This makes doing cycle counts and inventory a lot easier. Any relevant information about product handling, such as hazard warnings, nutrition facts, care instructions, etc., should be clearly labeled on the packaging. This helps with easier organization and tracking during the supply chain process.
2. Physical Design — Well-designed packaging should also be optimized to be easily handled, transported, and stored. Make sure the packaging design takes into consideration handles, materials used, and stacking ability etc., to improve functionality.

Package Optimization

Optimizing your packaging can have a direct impact on the amount of money you save. By incorporating lean thinking ideas into product packaging, companies are able to reduce the amount of surplus packaging material they use. The idea is to remove any extra feature from the packaging that takes up unnecessary extra space, such as bottle necks. This results in the items being lighter in weight, which makes transporting them easier.

The bottled mineral water giant, Nestle Waters, took the initiative to optimize their packaging; from 2010 to 2015, their plastic usage was reduced by 19% and they also reduced product weight by 9%.

Sustainable Packaging

More and more companies are adopting sustainable packaging by taking up green initiatives. Businesses are optimizing their packaging and switching to sustainable materials which reduce environmental impact. It also brings product procurement into focus, where green suppliers are given preference for procuring reusable packaging.

Improving your packaging functionality can improve the efficiency of the overall supply chain system. If you’re looking for viable packaging solutions, PremiumVials is the place to go!

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