If there is any stage that can affect the supply chain process, it is the packaging and packaging optimization.
Shipping companies and fulfillment centers package products to guarantee protection and ensure the end-user receives them in good condition. However, if suitable packaging materials are not used, the items might get destroyed. So when goods get destroyed, there are high chances of customer complaints, which can cost a company’s reputation.
While you might not have control over what happens during transportation and delivery, optimizing your packaging solution is the only way to reduce such issues.
Here are factors worth your consideration about this critical supply chain management element.
What does packaging optimization involve, and why is it important?
Packaging optimization involves using cheaper and innovative packing strategies to ensure your customers receive their orders devoid of damage. As a result, your business processes improve by optimizing your packaging solutions, leading to a little-to-no carbon footprint and increased productivity. In addition, it is an excellent solution for businesses operating on a tight budget.
In the past few years, online selling has become more popular due to the Corona Virus pandemic. Firms that closed down due to the economic crisis had to shift to e-commerce to continue to survive. So that means they will be doing more deliveries to local or overseas clients.
Optimization of packaging solutions is one way of preventing products from damage from the time they leave the warehouse or fulfillment center to when they land in a customer’s hands.
The benefits of optimizing your packing solutions include:
1. It saves you money
Most businesses, whether online or brick-and-mortar, operate to earn a profit. One way of maximizing your profit is by reducing operational expenses, and that is where packaging optimization comes in handy. It involves choosing the correct package sizes at a cheaper cost.
The packaging material is also high-quality despite its cheap pricing. So, when you spend less on packaging material costs, it means your transportation service provider won’t charge you highly for excess weight.
For example, if you pack your products in reduced box sizes, they can fit in one shipment. That means you will not have to foot hidden costs that come with more transit miles, fuel use, and packaging materials.
2. Improved customer experience
When a client places an order, it means you have to pack it well and ensure it reaches their hands in good condition. Without an excellent customer experience, your business will hardly flourish.
Packaging optimization involves a series of activities whose primary goal is to cater to the needs of clients. Even if you have quality-assuring products in the market, you must ensure your clients are happy each time.
3. Enhanced labeling and tracking solutions
SCM is all about ensuring a customer is satisfied with the products they ordered. However, one of the most overlooked elements of the supply chain is the packaging. As an online seller, your primary goal is to automate your packaging solutions through reliable software and customized shipping labels to help you track the products.
Optimizing an item’s traceability is one of the most vital decisions you can make for your organization. Not only does it streamline stocking, manufacturing and delivery processes, but it also saves your company from incurring unnecessary packaging costs and reduces customer complaints. In addition, it permits you to scrutinize merchandise automatically and grade them.
4. It guarantees little-to-no carbon footprint
Companies that use packaging materials that do not pollute the environment have high chances of thriving now that everyone knows the benefits of going in this direction.
For example, using polythene or plastic as secondary packaging might sound practical, but it is improbable that these two materials will exit the face of the earth anytime soon. Fortunately, many biodegradable packaging materials are of high quality.
Upgrade your packaging solutions to improve your supply chain management process
The SCM process can be complex, but businesses can enjoy various privileges with the right packaging optimization strategies. There is power in optimizing your packaging from cost savings, improved customer experience, excellent labeling and traceability solutions.
However, you will need to work with a reputable and up-to-date third party such as Enkoproducts, which provides shipping labels and customization services. As you go on such a hunting mission, ensure you use these four advantages of packaging optimization to influence your supply chain management.