According to DS Smith’s own research, the reduction of empty space transported in various forms of packaging globally promises saving potentials up to USD 46 billion in the upcoming years.
In addition to moderating packaging costs, smart packaging solutions lead to savings in logistic costs and mitigate environmental impacts. Now, let us see how it works in practice!
In association with a new project, the overseas shipping operations of BOS Automotive Products Magyarország largely increased. BOS Group is a global, customer-oriented supplier that focuses on specific product solutions, manufactures and distributes innovative systems, parts to the automobile industry. Their Hungarian entity entrusted us to re-design the internal insert of the existing packaging for an earlier product. Beyond the manageability of the increased volumes, they wanted to simplify packaging, because they thought that they spent too much time on packaging, too.
As their strategic partner, we started our work at the customer’s site with an in-depth study to assess their overall incoming logistic and manufacturing, as well as outgoing logistic processes. Following a workshop organized for joint “brainstorming” to strengthen cooperative approaches and find common solutions, development activities were launched.
During our work, we had a focus on the simplification of the packaging processes, because more products were now released over a unit period of time. For this reason, we optimized the number of packaging components alongside packaging time, and consequently worked out a technological solution to reduce costs.
As the outcome of the project, the former packaging solution consisting of four elements could be replaced by a new, one-component technique, while the packaging still perfectly satisfied all the requirements. It further resulted in packaging units of smaller dimensions, substantially decreasing the volume! The smaller quantities of incoming base materials demand less storage space, offer better manageability, which shortens the cycle time of packaging.
On the whole, collective packaging resulted in larger capacities, and therefore we could achieve more favourable unstacking and logistic parameters along the entire value chain.
The outcome of joint, constructive work:
- 53% increase in the number of pallets loadable on a single truck,
- 53% increase in the number of products loadable on a single truck,
- 35% fewer trucks needed during a year,
which considerably moderates negative environmental impacts. We have made even better achievements for container shipping.
- smaller size, smaller volume
- fewer elements
- no need for gluing
- corrugated BCàER (more products/pallet)
- smaller workload with the management, sorting, checking of pallets
- less waste
- smaller area needed for the stacking of pallets
- reduced warehousing costs
The unexploited opportunities that are inherent in packaging promise outstanding savings and competitive cutting edge for our customers, and when applied it can potentially mitigate environmental impacts, too.
Source: DS Smith