Need to Cut Costs in the Distribution Center? Reconsider Packaging

Success in packaging optimization lies in understanding the relationship of the package to warehousing and transportation.
Nov. 7, 2012 - PRLog -- In 2006 Walmart announced plans to reduce overall packaging costs by 5 percent.

The belief was that packaging optimization would have a big impact on the environment and the balance sheet.

Logistics leaders could not fathom the magnitude of savings coming from packaging — primarily a cardboard box that costs about $1 per unit, says Jack Ampuja in the November issue of Distribution Center Management.

Ampuja, the president of Supply Chain Optimizers notes that, "Many asked me if the projected financial savings could possibly be as big as announced. My answer was an unequivocal 'Absolutely.'"

"What most companies do not recognize is that packaging attributes — including a product's shape, size, and shipping carton strength — can affect supply chain costs significantly."

Ampuja explains how these factors can lead to savings in the November issue of Distribution Center Management. To read the full article, visit:

About the Distribution Group

For more than 40 years, Distribution Group publications have helped distribution center and warehouse managers increase productivity, cut costs, and meet increasing customer demands. Distribution Group publishes "Distribution Center Management" newsletter, books and reports, and a free e-newsletter.

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