10 Tips to Increase the Value of Packaging Operations
Packaging has historically been treated as a bolt-on service that isn’t tightly integrated with other supply chain processes. But with the rise of omni-channel sales and increased customization, that approach can limit both your agility and ability to optimize supply chain costs. Taking a holistic and integrated approach to packaging increases overall supply chain efficiency, allows you to respond faster to changing market requirements and improves sustainability.
By Alicemarie Geoffrion, Vice President, Packaging Operations, DHL Supply Chain
1. Locate Packaging Close to Inventory. Putting packaging close to inventory improves agility and reduces transportation costs.
2. Plan and Manage Holistically. Packaging has impacts upstream and downstream. Thinking about packaging holistically creates opportunities to improve planning and inventory management and eliminate transportation costs resulting from packaging inefficiencies.
3. Deploy Packaging Management Software. Advanced packaging software enhances packaging productivity and visibility. Working with a 3PL that has a standardized platform across multiple sites provides the ability to benchmark efficiencies with similar operations.
4. Integrate Systems. To fully optimize inventory management, material management, sourcing and procurement and demand planning, the packaging system should be integrated with both the WMS and the ERP system. Procurement can then leverage economies of scale while ensuring just-in-time delivery of materials required for each project.
5. Ensure Labor Flexibility. Inefficient packaging processes not only increase costs, they can compromise deadlines. Well-designed processes with disciplined execution are fundamental to realizing the full benefits of packaging to your business.
6. Improve Process Efficiency. Meeting the peaks and valleys of packaging labor requirements can be a challenge for organizations that don’t have the sophisticated labor management strategies that allow them to scale quickly without compromising quality.
7. Delay Customization. The later you can delay customization, the faster and more accurately you can respond to market requirements. By providing a single-source-of-truth, dedicated packaging software helps protect against last-minute critical inventory shortages and provides up-to-the-minute data on inventory location and quantity.
8. Right-Size Packaging. DHL Supply Chain research has found that, on average, 24% of the volume of an e-commerce package is empty space. Using sophisticated optimization algorithms combined with an on-demand approach to packaging can ensure the right package is produced at the right time for each shipment.
9. Increase Recyclability. Consumers are becoming less tolerant of shipments received in packaging that isn’t recyclable. A packaging partner that is material neutral is best positioned to help you transition to materials that are recyclable, or even reusable.
10. Automate Effectively. Not every operation requires automation, but when appropriate, systems such as robotic palletizers can enhance productivity and efficiency and deliver an excellent return on investment.
