The Role of Packaging in Successful Warehouse Management

There is a long list of reasons that packaging is one of the most vital ingredients to successful warehouse management. A warehouse has only two critical functions when it comes to any business. Return on investment and delivery due date performance.

Your warehouse has to be able to not only support itself but also to create a profit for the business of course that is the most simple way to look at the function of the warehouse.

The Heart of the Supply Chain

The warehouse is actually the heart of the supply chain. It is the logistic center for your business so success is a must. When you consider the parts of the warehouse in their most basic form what you are looking at is:

  • A space
  • Labour
  • Packaging

The space is the building, the labour is your employees and the packaging is what will carry your product. The goal to get that return on investment that every business wants is to make the most of the space, get the highest level of productivity that you can from your labour and of course the packaging determines both!

Making Space

pallet with collarsWhen we look at the importance of packaging to the success of any warehouse the first thing that comes to mind is the value that the right packaging adds to the amount of space that you can get out of your warehouse.

A good example is to consider cardboard boxes and wooden pallets with pallet collars.

Cardboard boxes have two negatives:

  1. They are not reusable.
  2. They are hard to stack beyond a certain point.

Of course that is not their only negative, they are hard for labor to move around. If you are using them your warehouse is likely experiencing quite a bit of bottle necking.

Pallets and pallet collars are the other hand:

  1. Are reusable.
  2. Offer flexible storage options and are easy for labor to move around, stack and even construct.

The right packaging allows you to make the most of ALL the space in the warehouse. Taking advantage of vertical space in your warehouse can mean getting much more space the right packaging allows you to get more custom use out of your space.

Space is not the only benefit of using the right packaging.

Beneficial to Labour

Two of the most expensive costs you are dealing with are labour and inventory, the right packaging choice can reduce risk to both. Choosing the right packaging options mean that your labour can work more efficiently. Efficient means productive.

If your employees have to deal with inefficient packaging tools then they are wasting time and running up costs. When you have packaging that is:

  • Easy to move around
  • Easy to construct/load/unload
  • That provides effective flexibility

You are giving your employees the advantages that they need to increase productivity and avoid risks. A good example of easy to use options are pallets and pallet collars. It takes one person to put together a pallet collar without any need of hand tools and one person can move the pallets around with a pallet jack or a fork lift.

Product Protection

Getting the most out of your warehouse (the measure of success) heavily relies on being able to protect your products while they are in the warehouse. Packaging is the key to protecting your products. You need packaging that is both flexible and durable at the same time.

The flexibility means that you can change the size of the packaging to best meet the immediate need. Durability means that your products are protected and secure from unauthorized entry. It can be a challenge to find a packaging option that can do both. A wooden pallet fitted with a pallet collar can do both nicely.

Protecting products from risk is a high priority in every activity with good cause. Inventory is the largest asset that most organizations have. Packaging makes a huge difference from every end of the supply chain.

More Efficient Transportation

A successful warehouse is constantly on the move. Having the right packaging material can ensure that your warehouse is constantly on the move and help with transportation costs.

The right packaging will help your products move seamlessly from the warehouse to the transport and finally to the end user without missing a beat. Keeping in line with meeting the delivery due date function, having packaging that can easily move from storage to shipping is crucial.

Packaging ensures that everything flows in the direction that it needs to both in and out of the warehouse. When you are using the options that your employees can easily manipulate you can be sure that things are going to flow nicely and there is a steady increase in productivity.

Packaging Is the Answer

When you are looking at the bottom line in your warehouse the easiest way to ensure you are getting all that you can and your warehouse is not only meeting its critical function but successful at it is to look to your packaging.

Packaging is a crucial component of every activity in the supply chain. It is so critical in fact that using the right packaging can affect your bottom line by up to a 50% -70% margin.

It can be a huge factor in the ROI and the delivery due date. Every successful warehouse has one thing in common they are using packaging that is ideal for their particular activity.

The success of any warehouse comes down to the packaging that is being used. Audit your packaging options and take a look at where you stand. Ask yourself:

  • Is it efficient?
  • Easy to manage by warehouse employees?
  • Providing flexibility?
  • Providing protection?

If you answered no to any of those questions than your warehouse is not as successful as it could be and you may want to consider other options. Making a switch can have a huge impact on the ROI that you are getting out of your warehouse operation!

11.07.2016

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The Role of Packaging in Successful Warehouse Management
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Packaging in Warehouse Management