The Two Faces of Packaging
Commercial Packaging
Designed to be the vanguard of marketing, to speak about the product, to sell at a 'glance'. Companies invest heavily in making consumer packaging attractive and commercially desirable.
Industrial Packaging
Has a more mundane role to protect the quality of the product during transportation. Yet it often receives minimal attention despite its significant impact on costs and efficiency.
What is Good Industrial Packaging?
Essential characteristics for effective industrial packaging
Protection
Shield products from shock, dust, humidity, ESD, temperature, theft, light, and contamination during transport and storage
Product Density Optimization
Ensure the best product density to reduce transport costs and maximize efficiency
Environmental Considerations
Correctly address environmental aspects (returnable vs. one-way, recyclable vs. non-recyclable)
Legal Compliance
Respect all law requirements at the destination or intermediate storing points
Customer Requirements
Meet all specific customer requirements and specifications
Work Ergonomics
Follow work ergonomics rules and principles to ensure worker safety and efficiency
The Economics of Packaging
Packaging typically costs between 0.01% and 5% of manufacturing cost
Typical range: 0.01% - 1%But Can Packaging Influence Other Costs?
Transport Costs
Poor packaging leads to inefficient space utilization and higher freight costs
Waste Management
Improper packaging increases disposal costs and environmental impact
Storage Costs
Inefficient packaging consumes valuable warehouse space
Handling Costs
Poor design increases labor costs and slows operations
From my experience, a good design of packaging can bring up to 0.5% profit to your company's P&L. Does it make sense to care about your packaging concept?
10 Essential Packaging Practices
Proven strategies for optimizing industrial packaging
Validate Both Product and Packaging
Packaging is as important as the product. When you request validation for the product, be ready to request validation for the packaging you will use as well. Don't treat packaging as an afterthought.
Always Have a One-Way Alternative
If you propose returnable packaging, make sure that from the beginning you propose a one-way alternative packaging to the customer. My recommendation is to mandatorily validate a one-way option in all cases, even if your customer doesn't request it. Clarify general conditions for returnables (cleaning responsibilities and timing).
Monitor Returnable Loops Constantly
Number of returnables in the loop and the constant and consistent revision of this loop will keep you out of trouble and with money in your pocket. Make sure the contract with customers or suppliers regarding the number of returnables in the loop is well known in the organization. Recalibrate this loop whenever changes occur!
Test with 3D Models and Hands-On
To achieve good product density from the start, don't rely only on CAD design. Use a 3D model of your product and packaging to simulate the packaging process. 3D printers are now accessible! Pack with your hands it can be different and helpful to see the real result. Take the time for this operation! You can always show the live concept to your customer.
Embrace Environmental Responsibility
Understand one-way vs. returnable. Transport also generates CO2! It can be good practice to reuse the same packaging you received from suppliers and ship to your customers. Re-use can be an excellent solution! You may already do this for pallets why not for boxes from your suppliers? Minimize plastic bags avoid having 2 bags in the same box.
Avoid Over-Protection
Problems can occur during the lifetime of your product, usually resulting in customer complaints. It's very easy (common sense) to add different layers of protection over the existing one. Over-protections cost you money and effort. Put the effort into proper problem-solving! Understand where it's used by the customer and what they really want.
Control Supplier Packaging
Don't rely only on suppliers to take care of packaging for their products. Your cost of handling can go up, as well as storage and transport. Be active and ask to see how they will pack. Include packaging validation in the PPAP process and check conformity from time to time. Proper packaging will help a lot in the internal logistics process. Standard packaging specifications will help but don't assume they'll solve all problems.
Continuously Improve
Everything can be improved packaging included! Don't consider that packaging is forever during the product's life span. Improvements can come from customers, internal suggestions, or suppliers. Good companies don't wait they request improvements from suppliers periodically and maintain a continuous improvement mindset internally. The change management process, if well applied, will ensure changes don't affect quality and are properly validated.
Share Your Unwanted Packaging
Not many companies do this, but share (sell) your unwanted packaging with other companies. Your neighbor might use it! The recycling of paper, plastic, wood, and metal can happen later. This way, the amount of packaging decreases on the market as well as the burden on the environment.
Control Everything
Control your packaging control your stock, your waste, your transport. In general, make sure all people in your company understand the impact and actively contribute to a better environment and, in the end, to a positive P&L in the company.
Industrial Packaging Engage!
As long as we don't use a teleport device to move your products, packaging will make a difference in your company. Don't miss out on this challenge!
Transform packaging from an overlooked necessity into a strategic advantage
The Last Frontier Awaits
Industrial packaging represents one of the last frontiers in operational efficiency. While it may seem mundane compared to commercial packaging, its impact on your bottom line, environmental footprint, and operational efficiency is substantial. The question is: are you ready to conquer this frontier?
