Getting Packaging Costs Down to Size

I’d like to present you an article combining two topics that are growing more and more important both for logistics, as well as for environmental protection; the reduction of packaging.

First of all, from the point of view of business logistics and supply chain management, a smart and thoughtful reduction of packaging can result in saving a lot of money. These savings are brought by through either lower shipping costs, as less spacious or lighter freight obviously reduces the overall costs by a higher cost effectiveness in packaging material.

Secondly, the mentioned reduction of packaging material could significantly lower a company’s ecological footprint by using less natural resources that are needed to produce or ship them. The article mentions some examples of firms that try to reduce their carbon emissions by making use of alternative and more ecological filling material as a substitute to conventional materials thus being making their business more sustainable. Other companies however, especially in the IT sector cut short on the card board that surrounds their products on their way from production to the end consumer without altering the risk of damage. Furthermore, they invest in sustainable materials, resulting for instance in a growth rate of 3.6 in revenues in the bioplastic industry.

However, this trend is also being challenged by consumers expecting something bigger in their hands when buying expensive electronic merchandise, at least before opening the package. Yet, with a majority of consumers being more aware of environmental issues and therefor pushing for innovation in this field, producers are sure to be delivering, especially since there is not only money to be saved, but also made.

By: Konstantin Brosch
Referenced by: Inbound Logistics

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