What is TCO and why is it crucial for packaging decisions?

Thijs Canjels

Thijs Canjels is Business Innovation Manager at Faes and specializes in packaging management and supply chain optimization. In his blogs, he shares insights on efficiency improvements, cost savings and the strategic role of packaging in modern supply chains.

Transport & Logistics

What is TCO and why is it crucial for packaging decisions?

Total Cost of Ownership (TCO) reveals the true cost of packaging by looking beyond purchase price to the full lifecycle impact. By factoring in handling, transport, damage prevention, and sustainability, companies make smarter packaging decisions that reduce risk and lower long-term costs.

Transport & Logistics

How does custom packaging reduce DOA for automotive components?

Custom packaging plays a critical role in reducing Dead-On-Arrival (DOA) rates for automotive components by protecting parts against shock, vibration, moisture, and contamination. By tailoring materials and internal designs to each component, manufacturers can prevent damage, avoid production delays, and significantly lower total supply chain costs.

Transport & Logistics

Which tests predict DOA risk for your products?

This article explains how targeted transport tests such as vibration, shock, temperature, and humidity testing help predict and reduce DOA risk. By identifying the most critical stress factors early, companies can design packaging that prevents damage, lowers costs, and protects high value products throughout the supply chain.

Transport & Logistics

How do you report DOA damage for insurance claims?

This article explains how to correctly report Dead on Arrival (DOA) damage for insurance claims, including strict timelines, required documentation, and common pitfalls. It shows why proper evidence and packaging records are critical to claim approval and how better packaging can prevent costly DOA incidents altogether.

Transport & Logistics

What does a high DOA rate cost your organization annually?

A high DOA rate silently drives up costs far beyond product replacement, impacting logistics, operations, and customer trust. This article explains how hidden inefficiencies compound annually and why structurally engineered packaging is key to reducing risk and total cost.

Transport & Logistics

What is the difference between standard transport crates and custom solutions?

This article explains the key differences between standard transport crates and custom packaging solutions, focusing on risk reduction, logistics efficiency, and total cost of ownership. It shows why custom solutions are often the more cost-effective and sustainable choice for transporting high-value or sensitive equipment.

Transport & Logistics

How can TCO optimization reduce packaging costs in 2025?

TCO optimisation shifts the focus from purchase price to the full lifecycle of industrial packaging, revealing where hidden costs drive inefficiency. By choosing durable, reusable solutions and improving handling, logistics and damage prevention, companies can significantly reduce total packaging costs in 2025 and beyond.

Transport & Logistics

How do you calculate the total cost of ownership of your logistics packaging in 2025?

Most companies underestimate the real cost of their logistics packaging by focusing only on the purchase price. This article explains how hidden expenses like damage, handling, transport and sustainability compliance shape the true Total Cost of Ownership in 2025, helping you make smarter and more future-proof decisions.

Transport & Logistics

What is total cost of ownership (TCO) in logistics?

Total Cost of Ownership (TCO) allows companies to look beyond the purchase price and reveals all logistical costs over the entire lifespan. It uncovers hidden costs such as damage, maintenance and inefficiency, enabling you to make informed choices. For example, a more expensive packaging solution often turns out to be the cheapest in the long term.

Transport & Logistics

What is TCO optimization for industrial packaging?

TCO optimization for industrial packaging goes beyond just the purchase price. It encompasses all costs during the entire lifecycle - from acquisition to waste disposal. Companies that apply this holistic approach discover that investments in higher quality packaging solutions often result in cost savings and contribute to sustainability goals. Discover which cost components are included and how circular packaging can significantly reduce the TCO.

Transport & Logistics

What is DOA prevention in industrial packaging?

Dead-on-arrival prevention is the cornerstone of reliable industrial logistics. By mapping every risk in the supply chain and designing custom protective solutions, Faes ensures that high-value equipment arrives exactly as intended: fully operational and damage-free.

Transport & Logistics

What is the difference between acquisition costs and total cost of ownership in logistics investments?

Understanding the difference between acquisition costs and Total Cost of Ownership (TCO) is essential for smart logistics investments. Faes explains how sustainable, reusable packaging may cost more upfront but delivers long-term savings through reduced maintenance, waste, and lifecycle expenses.

Transport & Logistics

How can DOA preventive packaging reduce transport damage?

Faes explains how DOA preventive packaging minimizes transport damage, reduces costs, and boosts reliability in high-tech logistics. By using tailored materials and shock-absorbing designs, it safeguards sensitive equipment and ensures every delivery arrives in perfect condition.

Transport & Logistics

How do you calculate the total cost of ownership for logistics packaging solutions?

Discover how to calculate the true Total Cost of Ownership (TCO) for your logistics packaging. This Faes guide explains how hidden costs such as transport inefficiencies and product damage affect profitability and shows why a lifecycle approach results in smarter, more sustainable packaging decisions.

Transport & Logistics

What is the difference between standard packaging and DOA preventive packaging solutions?

Faes highlights the difference between standard packaging and DOA preventive packaging. DOA solutions are custom engineered to ensure products arrive functional and undamaged, reducing failure costs and increasing reliability throughout the logistics chain.

Transport & Logistics

How does packaging management contribute to sustainability?

Discover how smart packaging management drives sustainability by enabling reuse, repair, and data-driven optimization. Faes shows how circular systems reduce CO₂ emissions, cut waste, and ensure compliance with upcoming EU regulations.

Transport & Logistics

How does packaging management increase supply chain effectiveness?

Strategic packaging management transforms packaging from a cost center into a driver of supply chain efficiency. By optimizing design, materials, and lifecycle, businesses reduce costs, minimize damage, and enhance sustainability across the entire logistics chain.

Transport & Logistics

How do you calculate total cost of ownership for reusable transport cases?

Are you only looking at the purchase price of transport cases? Then you're missing the big picture. Total cost of ownership (TCO) provides a complete picture of all costs: purchase, use, maintenance and disposal. This article shows how to fairly compare single-use and reusable transport solutions, which hidden costs are often overlooked, and when investing in premium quality is financially smart. Discover how the correct TCO calculation can save you thousands of pounds.

Transport & Logistics

How do you optimize logistics processes with custom packaging?

Custom packaging streamlines logistics by reducing product damage, saving space, and improving handling efficiency. Faes shows how tailored solutions boost sustainability, cut costs, and optimize the entire supply chain.

Transport & Logistics

The blind spot in DOA problems: why logistics causes are structurally underestimated

Discover why logistics failures are often the hidden culprits behind DOAs and how simple adjustments to packaging and processes can immediately yield significant gains. Read how you can transform logistics from a blind spot into a strategic asset for your supply chain.

Transport & Logistics

Design for Distribution: engineering choices that reduce DOA probability

Discover how you can significantly reduce the risk of defective deliveries (DOAs) right from the design phase by incorporating smart packaging, material and installation factors. Learn how Design for Distribution prevents technical choices from causing headaches, costs and quality losses later in the chain.

Transport & Logistics

Field Service Engineers as DOA remedy: training, tooling and installation scripts

Field Service Engineers play a crucial role in reducing DOAs. With the right training, tools, and installation scripts, you can prevent errors, save time, and increase the reliability of your service.

Transport & Logistics

Not just material: why one DOA costs >100% of part value

A defective part upon arrival costs much more than you might think. Once you factor in service hours, urgent transport and stock costs, the damage can amount to between 135 and 219 per cent of the material value. Understanding the causes is crucial to protecting margins and securing growth.

Transport & Logistics

Root causes unraveled: logistics, part quality and service quality (with NFF)

Discover how logistics errors, component quality and service quality together cause the hidden costs of DOAs. This article shows how root cause analysis and smart improvements can make your supply chain more reliable and cost-efficient.

Transport & Logistics

Packaging first: how fewer variants nearly halved DOAs

Discover how reducing packaging variants drastically improves the service chain: lower costs, fewer DOAs and higher customer satisfaction. This article shows how smart choices in packaging deliver immediate results.

Transport & Logistics

EU Battery Regulation 2027: What does it mean for transport and packaging of lithium batteries?

The EU Battery Regulation imposes strict requirements on the transport and packaging of lithium batteries from 2027 onwards. This article provides insight into new rules concerning QR codes, Battery Passports, return flows and recycling targets.

Transport & Logistics

From complaint to opportunity: how DOA can help you improve your supply chain

DOAs may seem like complaints, but they are primarily signals that help improve your supply chain. By analysing causes and optimising processes, you reduce costs, increase reliability and strengthen customer relationships. Faes shows how smart DOA management leads to competitive advantage and sustainability.

Transport & Logistics

What is ADR and why is it important for industrial packaging?

ADR regulates the safe transport of dangerous goods and sets strict requirements for industrial packaging. From UN markings to labelling and compatibility, compliance prevents fines and guarantees safety and continuity in the supply chain. Faes helps companies make their packaging fully ADR compliant.

Transport & Logistics

The €1,200 reflex: how rush shipments are driving up the real DOA bill

Urgent shipments seem like a quick solution for DOAs, but they can drive costs up to eight times higher than regular transport. This article shows how prevention, detection, and smart inventory strategies not only reduce costs but also structurally increase reliability and customer satisfaction.

Transport & Logistics

PPWR: What does the new EU regulation mean for industrial packaging?

The new EU PPWR regulation will impose strict requirements on industrial packaging from 2026 onwards. Companies must focus on reuse, recyclability and digital traceability in order to remain compliant. This article explains what is changing and how your organisation can prepare.

Transport & Logistics

Responsibility in DOA: who pays the bill?

Dead on Arrival products incur high costs due to transport, stock and repair work. This article explains who is responsible for these costs and how better packaging and chain collaboration can structurally reduce the number of DOAs.

Transport & Logistics

The hidden 4%: how DOAs erode your service revenue and margin

Dead-on-arrival parts may seem like a minor issue, but their impact is significant. On average, companies lose more than 4% of their spare parts revenue due to defective deliveries. Discover the hidden costs and how you can limit them in this article.

Transport & Logistics

Service levels at risk: what DOAs do to fill and ready rates

DOAs have a direct impact on service levels and increase costs due to additional demand, urgent deliveries and higher stock levels. This article shows how fill and ready rates come under pressure and offers strategies to limit damage and gain a competitive advantage.

Transport & Logistics

Whitepaper: Packaging-as-a-Service

Packaging as a Service transforms packaging from a cost item into a strategic tool for cost control, circularity, and compliance. The white paper demonstrates how this model assists companies in operating more sustainably and efficiently within the requirements of the EU Packaging Regulation.

Transport & Logistics

Increase inventory against DOA? Only makes sense at extreme ratios

Increasing stock seems like a quick fix for DOA, but often incurs high costs without addressing the real cause. This can only be useful in cases of exceptionally high defect rates, whereas structural improvements in packaging and logistics are almost always more effective.

Transport & Logistics

The hidden costs of Dead-on-Arrival (DOA): Why the problem is bigger than you think

Dead-on-arrival products cause more damage than just return costs and replacements. They disrupt production processes, strain customer relationships and increase the ecological footprint. Through better packaging strategies and chain-wide collaboration, Faes helps companies to prevent these hidden costs on a structural basis.

Defense High tech Transport & Logistics

Whitepaper: Customisation for demanding environments

This white paper demonstrates how customised packaging provides protection in the most demanding environments. With a focus on strict standards, sustainability, and first-time-right solutions, you will discover how packaging contributes to safety and efficiency.

Transport & Logistics

Faes – partner in Printed Electronics

Faes strengthens the growth of Printed Electronics through smart collaboration and automated packaging management. With solutions such as RFID tracking, pool management and PackAssist®, we ensure that companies can organise their supply chain more efficiently and focus on their core activities.

Transport & Logistics

DOAs snatch 30 percent off profits

In this article, you will learn how Defects On Arrival (DOAs) consume an average of 30 per cent of profits and why the actual costs are often underestimated. You will also discover how better packaging management and process improvement can drastically reduce damage and increase customer satisfaction.

Transport & Logistics

Socially responsible purchasing and sustainable packaging, are you doing it already?

Socially responsible purchasing and sustainable packaging go hand in hand: less material use, lower costs and a smaller ecological footprint. By packaging smarter and using data, you can optimise efficiency and comply with increasingly stringent sustainability regulations. Faes shows how companies can achieve immediate results with the right approach.

Transport & Logistics

Prevent packaging problems in your supply chain

Packaging problems in your supply chain lead to higher costs, delays and errors. By standardising packaging and using smart tools such as PackAssist, you can improve efficiency and customer satisfaction. Faes shows how this directly contributes to cost savings and a professional image.

Transport & Logistics

What does packaging have to do with SLAs?

Good packaging is crucial to meeting SLAs, as it directly affects delivery time, quality and customer satisfaction. Poorly packaged products lead to damage and DOAs, resulting in fines and reputational damage. By organising packaging smartly, you reduce risks and increase reliability towards customers.

Transport & Logistics

5 opportunities for better packaging management

Better packaging management reduces costs, prevents damage and makes processes more efficient. Clear agreements, smarter use of resources and optimal coordination throughout the chain enable you to create immediate value for your business.

Transport & Logistics

Lean and packaging: 5 eye openers

Lean working does not stop at the production line; packaging also plays a crucial role. By integrating packaging management into Lean processes, you prevent waste, reduce costs and ensure a smoother flow throughout the entire chain.

Transport & Logistics

A lot of money can be saved with Fourth Party Packaging, but how?

Many companies underestimate the hidden costs of packaging and its impact on customer satisfaction and the environment. With Fourth Party Packaging, you can gain control over processes, reduce costs and lower your carbon footprint. This turns packaging management into a strategic opportunity rather than a blind spot.

Top 4 problems in packaging industrial service parts

High tech

Increase your profitability with Packaging-as-a-Service

With Packaging-as-a-Service, you no longer invest in packaging but only pay for use. This reduces costs, lowers CO₂ emissions and ensures a flexible and scalable packaging process that delivers optimal returns.

Transport & Logistics

Whitepaper: improve the efficiency of your supply chain

Many companies lose margin unnoticed due to inefficient packaging processes and a lack of control in the supply chain. This white paper shows how you can regain control, reduce costs and improve your return on investment in a sustainable manner with an integrated approach.

High tech Transport & Logistics

More efficient supply chain: the benefits of good packaging management

Good packaging management prevents errors, reduces transport costs and limits damage. By using clear guidelines and smart software, you can increase efficiency and reliability throughout the supply chain.

Transport & Logistics

Fourth Party Packaging (4PP) as an extension of Fourth Party Logistics (4PL)

This article explains how Fourth Party Packaging (4PP) is an extension of Fourth Party Logistics (4PL). By strategically managing packaging, a 4PP provider prevents waste and optimises costs, materials and processes in line with the supply chain.

Transport & Logistics

Research: 25% more profit by addressing DOAs

DOAs cause high costs due to returns, repairs and damage to reputation. By tackling them in a targeted manner, companies can achieve up to 25 per cent more profit and strengthen customer relationships. Investing in better packaging solutions pays for itself immediately in terms of cost savings and continuity.

Transport & Logistics

What is a DOA?

Defect On Arrival (DOA) means that a product arrives damaged at the customer's premises, immediately incurring high direct and hidden costs. It reduces customer satisfaction, damages your reputation and can amount to as much as 5% of turnover. Good packaging solutions minimise this risk and protect both your margin and your customer relationship.

Transport & Logistics

Smart Packaging: working together on the smart logistics of the future

Smart Packaging connects packaging with data and enables real-time insight into the supply chain. Sensors and smart algorithms make processes such as order picking and inventory management more efficient, while product quality is better monitored. Collaboration between partners such as Faes and Bright Cape accelerates the path to the logistics of the future.