Packaging optimization can significantly reduce supply chain costs by improving how products are packaged for shipping. The efficiency of the supply chain depends on both the network of movement as well as the physical characteristics of the product. By designing packaging to better fit pallets and trucks, companies can impact key shipping rate factors like density and reduce logistics expenses. Through packaging assessments and cost-benefit analyses of improvement options, optimization programs can be developed to streamline packaging systems, lower costs, and enhance supply chain efficiencies. Examples of opportunities include reducing package weight and size, improving density, and designing packaging that better withstands distribution damage.
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Packaging Optimization Reduces Supply Chain Costs
1. Raymond Tarr Page | 1
Leveragingthe SupplyChain through Packaging
The efficiency of any company’s supply chain is a factor of the network [how far the product moves and how many times
it is handled] as well as the physical characteristicsof the product[shape, sizeand density].
Whilemany consultants would typically work on network optimization my focus is more “holistic”with the emphasis
packagingoptimization;I have completed projects for the automotive industry over 23 years,in many instances,reduced
supply chain costs by millionsof dollars.
The success in packagingoptimization lies in understandingthe relationship of packagingto transportation and
warehousingoperations.For example, many experienced logisticsexecutives do not realizethat a ll small packagecarriers
such as FedEx and UPS and LTL truckers likeRoadway and Yellow basetheir billingrates on these product factors:
Density, storability,susceptibility to damage, ease of handlingand density is the key factor, makingup more than half of
the weighting. Thus by designingthe shippingmedium to fitpallets and trucks better we areableto impactthe key rate
factors and reduce logistics expenses for clients. Below aresome real world examples of how to make our clients more
efficient:
PACKAGING OPTIMIZATION AND COST REDUCTION
I can provide packagingoptimization and costreduction programs to clients seekingto reduce cost and increase
efficiencies in packagingoperations. Usinga proven systematic approach, full assessments of current packagingsystems
and opportunities to reduce cost aredetermined. A detailed project scope and costbenefit analysisof variousoptions for
improvement would typically beprovided as an outcome of a feasibility analysis
Packaging Assessment
Determination of potential savings and optimization of packagingsystems
All brand families,segmented product groups or individual products
Cost savings projects to maintain critical brand requirements includingmarketing,distribution,production and
supply chain
Project Scope
Identification of each opportunity with a detailed projectscope to allowfull understandingand reviewof
packagingoptimization and costreduction opportunities
Cost Benefit Analysis
Cost of implementation vs. benefits are considered by all stakeholders
Projects areprioritized based upon costvs. benefit, resourceneeds and strategic plans
Measured Results
2. Raymond Tarr Page | 2
Benchmarking and validatingmeasured improvement results duringand after the project
Design, Development, and Prototyping
As an experienced packagingengineer, I would providepractical and costeffective solutions for most challenges.
Utilizing3D design engineers to create designs for specific productrequirements.
I would typically facilitatepackagingtestingand evaluateperformance.
Key experiences:
SustainablePackagingSolutions
PackagingDesign & Testing
PackagingEngineering
TransportPackagingSolutions
PackageDesign
Damage reduction
Cost reduction
ShippingAnalysis
PackagingModeling
ReusablePackaging
PackagingMaterial Selection
Returnable Systems
New PackageDevelopment
PackagingAssessment
Supply chain assessment
Financial Modeling
PackagingPrototyping
Supplier Sourcing
Sustainability scorecard
Consulting
Other:
Warehousedesign
Project Management
Facility engineering
Cost Reduction
Key to cost reduction in the ever-competitive business environment, organizations arecontinually seekingways to save
money on packaging.I am able to assess all aspects that can affect the packagingcostand create a design that will add
savings to the bottom line.
PackagingAssessments frequently lead to additional cost-reduction opportunities in theindirectpackaging-related costs,
includingimprovements such as productivity,quality,communication and customer satisfaction.
Distribution Damage
Each packagehas a unique lifecycleand differingdemands throughout the distribution system.
Each step of the process is examined to ensure that product is packaged to withstand the rigors of the distribution
journey. The assessmentcan discover if there is potential to improve the packagingwhilesavingcosts.
Damage reduction efforts are commonly two scenarios:tactical needs or strategic initiative.
Tactical:
Requires an urgent intervention to quickly identify a remedy or realization of quick wins.
Strategic:
Tested methods and a disciplined approach to achievetargeted reduction in damaged goods.
3. Raymond Tarr Page | 3
Transportation Cost Reduction
Optimizingpackagingmaterials,reducingshipping weight and cube, and increasingpackagingcubic densities can lead to
significantsavings.Whilethere may be minimal material savingsin directpackagingcosts,itcan havea multiplier effect
on the cost of transportation,handlingand storage.A change in packagingcan create a rippleeffect throughout the
supply chain producingefficiency gains,dramatic cost-savingsand reduced energy consumption.
Packaging Standards and Guidelines
Knowledgeable in the ASTM, ISTA and Tappi standards and guidelines for packagingthatimprove the efficiency of your
packagingand distribution systems.These are standards and guidelines thatmay help improve the efficiency of transport
packagingand distribution systems.These standards cover plastic,paper,glass,metals rubbers and composites used in
containers,cushioning,wrapping,barriers,closures and aids for sealing,utilizing,reinforcingand handling.
Fact
If analyzed, packagingas a whole,within the greater realms of supply chain,constitutea surprisingpercentage of any
countries GDP who are activein the global movement of product.
It’s all aboutthe “C” price– total collectivesupply chain costdelivered to pointof use……optimized cubes received
damage free