supply chain packaging

Optimization in Packaging: Impact, Processes, and Best Practices

Packaging plays a pivotal role in ensuring logistical efficiency and sustainability. As supply chain management processes evolve, optimizing product packaging has become essential to support seamless operational workflows and help minimize costs, driving overall supply chain performance. Even increasing consumer demands have pushed experts to develop and implement innovative strategies that enhance the effectiveness of retail packaging in the supply chain.

For instance, the use of ink-jet printing on aluminum cans is a practice that has made branding more accessible and cost-effective, especially for small businesses. In particular, it has also successfully reduced lead times and improved inventory management within the supply chain. Traditional gravure printing methods often require a minimum purchase of 1-5 truckloads of cans, making it challenging for emerging brands to compete.

In contrast, digital ink-jet printing allows these brands to avoid the need for labels and shrink sleeves, enabling them to produce smaller batches more efficiently and flexibly. This result illustrates how packaging innovations can significantly impact the efficiency and responsiveness of the entire supply chain.

This resource article explores the importance of packaging in logistics and supply chain management, as well as some best practices for packaging optimization in the supply chain to meet both current and future challenges.

supply chain packaging

How Optimization in Packaging Impacts the Supply Chain

Before reviewing some packaging optimization, discussing how different packaging requirements affect the global supply chain is essential to understanding their interplay.

Product protection and safety

Product protection is a critical aspect of packing that directly affects the supply chain’s efficiency and reliability. It addresses a pressing packaging issue in the global supply chain: products that sustain damage in transit, which accounts for up to 30% of the $32 billion worth of returns the US suffers from during high-demand seasons. This figure underscores the critical need for protective packaging solutions.

Reliable packing becomes even more evident when dealing with fragile or perishable items. For food packaging in the supply chain, wrappers and boxes must keep products safe from pests and moisture.

Lunchables’ packaging is a notable case study. It mimics school lunch trays to appeal to young people, yet it seals food items so effectively that they’re entirely safe from outside damage, reducing the likelihood of consumer complaints. This technology and other solutions like vacuum-sealed plastics protect products from contamination and maintain their quality.

Source: Cubery

Recent innovations in shock-absorbing materials have been a game-changer for fragile items. Take expanded polypropylene (EPP) molds, for example. It fits snugly with any delicate item but still provides cushioning, minimizing risks during transit and reducing product returns. In short, leveraging durable and protective packaging is also crucial to nurturing one’s brand image.

Transportation efficiency

At the same time, packaging is essential to optimizing transportation efficiency, explicitly affecting logistics’ sustainability and cost-effectiveness.

It achieves this through space utilization. Compact and stackable packing allows for transporting more products in a single shipment by maximizing available cargo space. Such efficiency reduces the number of shipments required to meet quotas, lowering overall transportation costs and, as a bonus, cutting the operation’s carbon emissions.

Lightweight solutions are another critical factor in improving transportation efficiency. Reducing the material’s weight enables companies to lower fuel consumption during transportation, translating to significantly cheaper shipping costs. Take the Coca-Cola Company’s new PET bottle, which has reduced their bottles’ weight from 21 grams to 18.5.

Bottle comparisons for Coca Cola, Fanta and Sprite

Source: The Coca‑Cola Company

Likewise, standardizing packaging sizes and shapes improves transportation efficiency by predicting cargo space utilization. When packing conforms to standardized dimensions, businesses can easily stack and arrange them within shipping containers, maximizing space usage and reducing the need for additional shipments.

What is Supply Chain Management?

Supply chain management involves coordinating a network of businesses that contribute to the production, handling, and distribution of goods, from sourcing raw materials to delivering the finished product to the end customer.

It encompasses procurement, production planning, inventory management, logistics, and customer service. Its primary goal is to improve the supply chain’s efficiency and cost-effectiveness by ensuring the right products arrive at the right place at the right time and with the lowest possible price. Effective supply chain management requires collaboration between all stakeholders involved.

The Role of Packaging in Supply Chain Management

Knowing how to utilize packaging to streamline supply chains is essential to business success. Below are key ways in which packaging impacts and optimizes supply chain management.

1. Integration with supply chain operations

As mentioned, efficient packaging dimensions maximize storage spaces, allowing businesses to store more products without expanding warehouse capacity. Take boxes, for example, which are more stackable and organizable than round containers.

Modern technologies integrated into product packaging also contribute to optimization in packaging by streamlining the supply chain. Some standard implementations include barcode and RFID tech, which improve inventory tracking by providing real-time data on product location, reducing discrepancies. Smart tech like Internet of Things (IoT) sensors and GPS tracking also offer end-to-end visibility across the supply chain.

Packaging designed for easy identification and handling helps warehouse staff locate and retrieve items quickly. Circling back to barcode tech, studies show that warehouses utilizing barcodes speed up order fulfillment by up to 50%.

packaging supply chain

2. Customer experience and brand protection

Packaging influences how consumers perceive a brand and its products, making it a critical component of the overall customer experience.

For one, aesthetics—design, color, and branding elements—enhance brand recognition and product differentiation on crowded shelves. Most American consumers (72%) agree that packing design influences their purchasing decisions. After all, packaging is  a brand’s first point of contact with customers. Hence, investing in designs that resonate with their target audience is crucial.

More than aesthetics, packaging also shapes unboxing experiences. Elements such as personalized messages, branded tissue paper, or unique opening mechanisms create memorable unboxing moments that elevate the customer’s overall experience.

3. Environmental impact and sustainability

Sustainability has become a focal point in supply chain management. The shift toward biodegradable, recyclable, and renewable packing solutions reflects a broader industry trend driven by rising consumer demand for sustainable packaging. Just look at Nestlé, which committed to reducing its non-recycled plastic use to a third by 2025.

Implementing sustainable packaging throughout the supply chain involves careful planning and optimization in packaging strategies. For example,  lifecycle assessments (LCA) are required to evaluate environmental effects across all stages of packing, from raw material extraction to end-of-life disposal. It helps companies make informed decisions about packaging materials and design choices that minimize their ecological footprints.

Sustainability in Packaging

Source: Pin / Studio Bruch

To further enhance sustainability efforts, invest in software like COMPASS by Trayak, which provides insights into the full lifecycle impact of your packaging. This tool will become even more valuable as Extended Producer Responsibility (EPR) regulations take effect in the USA.

In addition to using advanced tools, brands must educate themselves and collaborate with suppliers who are well-versed in the entire packaging lifecycle—not just those focused on meeting sales quotas. It’s also crucial to engage with the broader supply chain by visiting Material Recovery Facilities (MRFs) and communicating with end-of-life users to understand the full impact of packaging decisions.

Integrating automation, robotics, and other advanced technologies is revolutionizing optimization in packaging within the supply chain. Automated packing systems improve efficiency by speeding processes by up to 40% and minimizing human error. Likewise, robotics handle repetitive tasks like picking and packing with precision and speed, surpassing manual labor.

The industry also has a place for augmented reality (AR) solutions. AR and interactive packaging are emerging trends that elevate consumer engagement by providing immersive experiences via product packaging, as Kellogg’s did in their “Colour & Win” partnership with Crayola in 2019.

Source: Dieline

Companies can expect smart technologies to shape the industry’s future in supply chain management. Innovations like blockchain-enabled logistics solutions to improve traceability and AI-powered predictive analytics may drive the subsequent waves of efficiency gains. Adopting these techs also presents challenges that hinder growth, including high implementation costs.

5. Regulatory compliance and risk management

Product packaging must adhere to global standards and regulations to avoid penalties. Designations from the International Organization for Standardization (ISO), such as ISO 55, which standardizes the packing and distribution of goods, are a must-have. At the same time, the American Society for Testing and Materials (ASTM) evaluates the material composition, labeling, and safety of packaging materials.

Navigating regulations abroad is more challenging. Brands must meet the recycling and recovery requirements of every country they sell to, which vary greatly by region.

Businesses also implement robust risk management strategies to protect against potential supply chain disruptions caused by packaging failures, such as leaks or contamination. It is beneficial to subject designs to rigorous testing and simulations to ensure they can maintain product integrity throughout their entire lifecycle.

Packaging Optimization Strategies for an Effective Supply Chain

Now, how do businesses ensure an efficient supply chain with packaging? This blog highlights several proven tactics below.

1. Implement right-sizing strategies

Right-sizing involves optimizing material dimensions to ensure products are secure and safe while minimizing the use of excess materials. Apart from making shipments more organized, this practice also cuts material costs and improves transportation efficiency—all while minimizing waste.

Source: Pin / Dieline

One way to ensure the effectiveness of right-sizing is to always obtain prototypes and conduct thorough testing. This strategy helps confirm that the product will arrive fully intact using the least possible packaging.

2. Embrace sustainable materials

Using eco-friendly materials is essential to reducing the supply chain’s environmental impact and meeting sustainability requirements. 75% of companies worldwide have committed to the cause. Brands that want to remain competitive must follow suit and use materials such as molded pulp, paper bags, and plant-based plastics.

3. Adopt smart packaging technologies

Smart technologies provide real-time monitoring and tracking capabilities that strengthen visibility throughout the supply chain. For example, RFID and NFC tags streamline inventory management by providing accurate data on product location and status, reducing errors from manual checking.

4. Automate packaging processes

As mentioned, automation in packaging considerably boosts efficiency, accuracy, and cost-effectiveness. Robotic systems can handle repetitive tasks like packing and sorting, allowing companies to scale operations quickly while keeping labor costs down. Meanwhile, automated packing lines enhance speed to minimize errors and increase performance.

5. Optimize for logistics

Designing packages with logistics in mind minimizes guesswork down the line. Optimizing packing for stackability ensures products occupy minimal space, maximizing warehouse storage space and reducing transportation costs. Modular packaging designs offer flexibility that can help in this regard.

packaging logistics

Source: Pin / Packaging of the World

6. Enhance reverse logistics capabilities

Reverse logistics focuses on efficiently managing product returns to minimize delays for both the business and the customer. Packaging designed for easy returns, such as resealable or reversible options, streamlines the process by reducing handling time. This approach also supports sustainability, as customers can return items without needing to use new packaging.

7. Promote circular economy principles

Adopting the circular economy in packaging entails designing systems that keep materials in use for as long as possible. Take the soda refill practices in some countries, for example, which keep bottles in a cycle of purchase, consumption, refilling, and resale. Exploring biodegradable and compostable alternatives further minimizes the industry’s environmental impact.

8. Foster collaborative partnerships

Collaboration between suppliers and stakeholders along supply chains is crucial for continuous innovation in packaging design. Engaging with them early on could spur the co-creation of optimized solutions that meet specific supply chain needs. Likewise, consolidating suppliers streamlines procurement and improves consistency in packaging materials and quality.

Streamline Your Supply Chain via High-Quality Packaging

Packaging has gone beyond a shell to protect goods. It has evolved into an asset that drives optimization in packaging by significantly improving supply chain performance while showcasing a brand’s commitment to sustainability and corporate responsibility. Brands that keep up with the latest packaging trends and consistently innovate their logistical strategies will be better positioned to optimize their operations and meet ever-changing consumer demands.

Learn more about your business’s packaging needs by talking to the team of experts at Meyers. As a leading custom packaging solutions provider, we specialize in offering a range of products, including folding cartonsPCR packaging, and prime labels. Our focus is on helping you realize your packaging concepts with practical and tailored solutions that meet your specific needs.our brand. Meyers can elevate your product packaging, whether you’re looking for minimalist packaging or something bold. We are here to develop packaging that reflects your values and delights your audience. Together, we can shape the future of packaging.

Meyers creates folding carton packaging and labels that help shape a better future for people, products, and the planet. Trusted by leading brands like Hormel, Ulta Beauty, and Microsoft, Meyers combines innovation with a commitment to sustainability. Contact us today to learn more.