Packaging Optimization in Supply Chain Management

Have we ever wondered if products from different companies had the same packaging, what else can help us decide on the purchase beside the quality of the product itself?
Packaging has never been so determining as a factor into the consumer's purchasing decision. The more the company invests in packaging, the higher the price will increase as it is considered part of the main costs.
"It started with soaring fuel and transportation costs a few years ago, as companies realized that “over packaging” and packaging redesigns offered significant opportunities to reduce the dimensions of products for shipping – allowing companies to ship more products in the same carton, pallet or trailer. That directly lowered transportation costs.
Then, even as transportation costs moderated, Green Supply Chain considerations started to rise, where packaging again is seen as playing a critical role, both in reducing waste and eliminating energy use – and with that also reducing transportation expense."

Below is an example from a telecommunication industry company


"By reducing the size of the unit packaging by just 1.5 inches in one dimension, while modestly increasing its strength, the manufacturing was able to get rid of the masterpack cartons, and dramatically impact pallet efficiency."

Inventory Optimization Hierarchy

Supply chain strategies can be as innovative as a business man can imagine, yet it can also be as rigid as a formula. Once you get the formula correct, you shall have the correct answer. On the other hand, if things were wrong from the beginning, that does not always mean there is no other way to alter/improve the circumstance.
Similar thought in inventory, "Companies usually move through a progression in their Inventory Optimization programs, beginning first with optimization of inventory and safety stock policies, next moving to optimization of deployment and replenishment strategies across the supply chain, and finally segmenting customers and using "service policy" optimization to further improve results."

[ Source: Chainalytics ]