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Summary of this article

Within industrial organisations, packaging management is often approached as an operational activity, even though the greatest opportunities for improvement are spread across the entire supply chain. Without clear agreements on responsibilities, use, maintenance and return flows, unnecessary handling, inefficient processes and additional costs arise. By organising packaging as an integrated supply-chain process, organisations can identify where time, materials and capacity are being lost and where standardisation or improved collaboration can create value.

The financial impact is not limited to the purchase price of the packaging. Inadequate protection can result in damage and dead-on-arrival incidents, while inefficient dimensions and an unfavourable weight-to-volume ratio increase transport costs. Information flows also play an important role. When data on the availability, location, condition and use of packaging is lacking, the risk of downtime, urgent transport and unnecessary inventory increases. The actual performance of packaging should therefore be assessed on the basis of all associated activities, processes and costs throughout its entire life cycle.

For management, this means that packaging management requires supply-chain-wide coordination, measurable objectives and clear ownership. Technology can support this through centralised web applications, monitoring and greater visibility into packaging flows. Collaboration with specialised supply-chain partners or an independent coordinating party can also help optimise processes across departments and organisations. In this way, packaging develops from an isolated cost item into a strategic instrument for structurally reducing damage, transport costs, inventory levels and operational complexity.
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Look at the role of packaging with a broad view, across the supply chain

At Faes, packaging means much more than the packaging itself and the physical act. We look at the total process, your entire supply chain. Which links in the chain does packaging affect and how can we make this run more smoothly? We call this packaging management.

To give you an idea of exactly what this means, we’ve listed 5 opportunities for better packaging management for you:

Faes medewerker bespreekt logistieke data en verzendvolumes om de totale eigendomskosten van industriële verpakkingen inzichtelijk te maken.

1. Establish clear packaging agreements

In many industrial environments, packaging is not considered a high priority. However, significant cost savings can be achieved by establishing clear agreements and procedures with all stakeholders throughout the supply chain.

2. Review all packaging-related activities and processes

The true efficiency of packaging can only be assessed by examining all related activities, processes and information flows. Naturally, this expertise can also be sourced externally. The associated costs and efforts generally pay for themselves quickly through the savings achieved.

3. Prevent damage and DOAs

Field research into DOAs (Defect on Arrival) within service logistics shows that 30% of all damage can be attributed to packaging. You can read more about one of these studies in this e-book.

4. Reduce transport costs

Freight costs are based on weight and volume, but these factors are not always taken into account when packaging is developed. As a result, companies often end up shipping air. Transport costs can be as much as six times higher than the cost of the packaging itself, meaning that packaging improvements can quickly pay for themselves. This case study explains how we helped Philips Healthcare reduce its transport costs.

5. Fourth parties and web-based applications

New technologies, such as intelligent web-based applications, make it possible to continuously monitor all packaging activities, identify opportunities for optimisation and implement improvements.

An increasing number of supply-chain partners are looking for new ways to collaborate and determine the right approach. Some refer to this as an “ecosystem” or “moving up the value chain”, while others use terms such as “partnerships” or “control towers”. We prefer to call them “fourth parties”.

Examples include Fourth-Party Logistics and Fourth-Party Packaging. You can read more here about what 4PL and 4PP involve.

Do you also want to take the next step toward better packaging management?

Our packaging experts are happy to talk with you to see where opportunities exist for you to optimize your supply chain and processes. Leave your comment or question in the form below or contact us directly.

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Thijs Canjels

Thijs Canjels

Business Innovation Manager

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.

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