The Role of Packaging in Distribution

Distribution centre operations rely on aligning several critical components to achieve performance throughout the entire distribution process. Packaging is generally a component that does not receive enough attention, yet it is one of the most important factors and can negatively affect the performance of the distribution centre.

At best, poorly designed packaging can lead to a range of inefficiencies. In some cases, packaging problems can affect the entire supply chain across all its divisions.

This article explains both the inefficiencies and consequences of poor-quality packaging, as well as the importance of packaging optimisation for improving distribution centre performance.

How Packaging Can Affect Distribution Centre Operations

1. Damage and Injury

Both durability and efficiency should be key strengths in packaging design. Packages that do not remain secure during transport can lead to damage to the packaging or even to the product itself, resulting in repackaging or temporary storage before being returned to the manufacturer.

At the same time, low-quality packaging can pose a safety hazard to those responsible for stacking packages. It may collapse under the weight of other packages and topple over, striking a warehouse worker.

Always place heavier items at the bottom. This will ensure that pallets remain stable and that the weight of the materials is distributed correctly, preventing deformation. The best technique for properly securing a pallet is to wrap it with stretch film 5 times from top to bottom and then as tightly as possible all the way to the end.

Once arranged on pallets, boxes can be secured with stretch film (resistant to environmental conditions, securing and protecting products on pallets, flexible and extensible), pallet strapping (ensuring constant tightening tension throughout all stages of handling the strapped package), VCI aluminium shield (ideal for maritime transport and the transport of containers holding materials that must be protected against moisture, corrosion and salt) or thermal insulation cover (for insulating pallets and protecting them from excessively high or low temperatures).

2. Workflow

Packaging that makes handling and processing difficult, or that requires additional labour, will affect receiving, storage, handling, packing and shipping.

Performance can be negatively affected in the following ways:

• Accuracy in order receiving, storage and picking;
• On-time shipping;
• On-time order fulfilment;
• Processing time;
• Percentage of damaged products;
• Inventory-to-sales ratio;
• Units per transaction;
• Product return rate;
• Profitability rate;
• Perfect order rate;
• Inventory transportation costs;
• Use of labour and equipment.

3 .Space Utilisation

Incoming packaging has a significant impact on space, which is a finite resource for most distribution centres. The best packaging solutions increase the efficiency of storage systems. Reducing the size according to the requirements of the packaged product helps save on packaging costs, transport expenses and storage space. Productivity will also increase as long as access to products becomes much easier and more organised.

As long as you use correctly sized packaging, you will not lose storage space. Using pallets offers an advantage in this respect.

Foldable wooden crate is designed to make it easier to store goods of various sizes, including bulk goods, in the available storage space. Once the crate is emptied, the storage space it occupies is reduced because it can be folded.

During peak seasons, storage space is extremely important because additional inventory is required. Therefore, efficiently designed packaging helps us avoid additional costs related to storage space.

You can find out more about efficient storage, as well as the most common mistakes, in our previous articles: 5 Common Warehouse Management Mistakes  or Storage Solutions.

At Inatech Packaging, you can choose from a wide range of storage products, ensuring that your needs align perfectly with our ability to customise products. For further advice regarding our product range and packaging operations, contact our packaging specialists on +40 214.480.358 or at [email protected]