Packaging will play an important role for the logistics industry in the next three to five years as the expanded variety of e-commerce products has led to new challenges in shipping and packaging, a new survey conducted by DHL shows.
Driven by globalization and e-commerce, the overall volume of products shipped is rising, and packages are traveling further through longer, more complex cross-border logistics networks, DHL’s trend report “Rethinking Packaging” said.
The DHL survey shows that for nine out of 10 logistics companies, packaging will play an important role in the next three to five years. Fast-tracked deliveries and increasingly popular subscriptions services result in frequent single-item shipments, contributing to more carbon emissions and packaging waste.
Moreover, the expanded variety of e-commerce products has led to new challenges in shipping and packaging. Demand for more sustainable shipping is driving new efforts to minimize waste, promote green materials, and implement convenient recovery systems.
“Surveyed customers see themselves confronted with maintaining a reasonable spend on packaging, the number of shipments damaged in transit, as well as optimizing the available transport capacity,” the report said.
“The Trend Report and our customer survey illustrate just how important easy, recyclable, and robust packaging is to an overall positive customer experience. The acceleration of changing needs of companies, consumers, and the wider environment however increase costs and reduce effectiveness,” Matthias Heutger, global head of innovation & commercial development at DHL, explained.
“We believe that the adoption of new packaging optimization tools, materials, and handling technologies will significantly boost efficiency and productivity. That in turn, will drive changes in the operation of supply chains and logistics processes.”
Across industries, increasing demands are being placed on packaging. In the automotive and technology sectors, supply chains must evolve to accommodate growing volumes of delicate, high-value components. In healthcare, logistics professionals must ensure safe and compliant delivery of lifesaving medicines and devices to hospitals, communities, and patients’ homes.
“As e-commerce usurps traditional retail, the package on the doorstep is now a critical touchpoint between consumers and brands,” the report noted.
To reduce the cost, inconvenience, and environmental impact of packaging the logistics industry must adopt new technologies, materials and processes across the value chain.
These include packaging optimization, packaging automation, sustainable packaging material, reusable packaging and reverse logistics, and smart packaging, said the report.
Packaging optimization requires companies to introduce software that expertly calculates the best possible ratio of items, cartons, and pallets and then communicates the results directly to pickers. This will minimize product damage and cost that come when shipments are not completely filled up.
Packaging automation entails automated unloading processes, end-of-line packing and labeling systems, and collaborative robots to relieve the burden of seasonal packaging and hiring needs.
Meanwhile, majority of respondents said the introduction of sustainable packaging materials is their number one near-future packaging priority. Research into green alternatives to plastic shrink wrap and single-use plastic envelopes, as well as sustainable groceries’ packaging is ramping up while at the same time, balancing cost and customer convenience is proving challenging for retailers.
On reusable packaging and reverse logistics, this is not just about the adoption of reusable materials and closed-loop recycling programs to eliminate waste.
“Industries considering building an economically viable reusable packaging system need to think about required size of the packaging material pool, the design of systems for cleaning, inspecting, and maintaining containers, and the cost, speed, and ease of use of reverse logistics processes,” the report said.
Finally, smart-packaging technologies such as smart labels or tags and last mile product protection measures can strengthen the connection between the customer, the supply chain, and the package via real-time updates on its condition and location.
Image courtesy of DHL
