Decreasing the amount of packaging a firm is using can reduce waste and increase positive public perception of your organization. Ideally, a supply chain will be conscious of the cost cutting importance of recycled materials. Taking an audit of packaging can reveal ways to “cut the fat” and make the packaging a lean machine that helps to keep the workflow moving along nicely. Many things happen in the supply chain that is hard to control. Technology in the warehouse, in transportation for inventory and more is incredibly important but there are other smaller, less expensive steps that some companies have been using that not only optimize the chain but also saves money and improves public perception. Every supply chain executive has the duty of auditing process to make changes where improvements are possible. This is a simple plan to integrate into the system with the right packaging option. A common mistake that we find in many supply chains is the tendency to over pack goods for shipping and storage. The goal is to use packaging that delivers flexible options i.e., easy to manage, easy to store, does not generate waste and delivers the best value. When our supply chain is using packaging that the supply chain cannot reuse, we are essentially throwing good money after bad. According to statistics there was over 35.4 million tons of paper and cardboard generated in 2016 and (16.3 million tons for each of these waste materials in 2016 and that was just in the EU! In the United States, packaging waste is around 77 million tons just in cardboard packaging waste. Even supply professionals that are not well-versed in packaging will understand the importance of using packaging that enhances workflow, protection and that reduces risk. In the perfect packaging scenario, our packaging need to recycle in the supply chain. The costs of waste generated by packaging materials is tremendous not just economically but environmentally as well.
Keywords: Supply chain optimization,Packaging, Recycle,waste,firm.
Supply and logistics are the backbone to any successful business, look at Jeff Bezos and Amazon and how wildly successful that model has been, and it all comes down to innovative supply chain activities. It can be easy to overthink ways to optimize the supply chain and miss the smaller things that can have a big impact on efficiency, cost and overall optimization.
Supply chain optimization
Technologies Are Not the Only Option
In today’s supply world technology is king. Most supply executives turn to modernization and technology to make their supply chain more efficient, which it does, but it is not the only answer. Technology in the warehouse, in transportation for inventory and more is incredibly important but there are other smaller, less expensive steps that some companies have been using that not only optimize the chain but saves money and improves public perception.
Take an Audit
Every supply chain executive has the duty of auditing processes and taking a closer look at where improvements can be made. Unfortunately, when it comes to shipping and storage packaging a lot of executives take a back seat and leave it up to engineers and designers to manage. The fact is while designers and engineers are great at developing packaging that the end user will find appealing they are not the best source when it comes to efficiency and safety in the warehouse. Taking an audit of your packaging can reveal ways to “cut the fat” and make your packaging a lean machine that helps to keep the workflow moving along nicely.
Analyzing Your Packaging
There are a lot of things that happen in the supply chain that is hard to control. Weather and transportation delays, labor problems and more can slow things down and there is not a lot you can do to control it but there are some things that you can easily control like packaging.
Ask yourself the following questions during your overview of processes:
How much labor is dedicated to packaging goods?
How much waste is generated not only in the warehouse but at the end users as well?
Is your packaging fully recyclable?
How much use do you get out of your packaging?
Can your packaging be reinserted into the supply chain and used again?
What does your inner packaging process look like?