Packaging products involves far more than the physical material used to encase and transport products. From choosing the right type of packing and accounting for environmental factors during the transportation process to working with the right package design and material vendors, the art of packaging is complex and demanding. This is why all successful companies have one thing in common: an emphasis on packaging optimization.
An Introduction to Packaging Optimization
Packaging optimization can be defined as the process of using intelligent packaging that efficiently contains, communicates, and protects a product as it moves from manufacturer to warehouse to its final destination. When packaging is insufficiently optimized, it will likely become damaged somewhere along its journey. On the other hand, if packaging is too optimized, it wastes materials and cuts into profits. Both of these outcomes are harmful to businesses, especially when packaging becomes damaged. The ripple effects of damaged packaging extend further than most people realize.
The Hidden Impacts of Damaged Packaging
There are many different impacts of damaged packaging that might not seem obvious at first. To begin, if one of your company’s products arrived damaged, your company will be responsible for paying for the return shipping costs. Not only does this cut into your cash flow, but returns also harm the environment as they burn diesel fuel, emit carbon dioxide, and create waste. Furthermore, if the customer needs a replacement quickly, your company also needs to pay for expedited shipment of a new product to keep the customer satisfied.
However, the consequences of damaged packaging go beyond the direct costs to your business. There’s also the problem of customer dissatisfaction. Producing and delivering damaged products will harm your company’s credibility with the consumer, putting you at risk of losing that customer permanently. It can also lead to bad word of mouth; the disgruntled customer could write a negative review, spread his story to friends, and more. This hurts your brand image and puts you at risk of losing more customers.
Overall, the effects of products arriving damaged can be thought of as an iceberg. The shipping costs and production costs are obvious, but the hits your business will take on everything–from providing discounts to hurting customer satisfaction and damaging brand image–are harder to identify and resolve. With proper packaging optimization, many of these issues can be completely prevented.
For help with your own cartoning, tray forming, and casepacking optimization, contact Econocorp Inc. in Randolph, Massachusetts. As a recognized worldwide leader in packaging, Econocorp can help to improve and streamline your own processes to maximize your efficiency.
