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Packaging Analysis: Are You Shipping Air?

packaging analysis

Supply Chain Efficiency

Savy shippers are always looking for savings, and here at Zero Down, finding savings is what we do best. On this blog we write a lot about Audit and Optimization, as those are two important ways to increase supply chain visibility and save money on transportation costs. But there are other areas where businesses can look to improve their supply chain efficiency and find hidden savings as well. One example: a Packaging Analysis. Many companies out there only use 60% of the available space in their packages. That means that a little under half of what those businesses are paying to ship is just air. Many decision makers will try and tell themselves that the cost of that extra space is negligible, because it doesn’t dramatically affect the package’s weight. Quick question though: What about dimensional weight? Over the years, Zero Down’s supply chain experts have helped clients achieve up to 15% in savings on their transportation costs, simply by optimizing their delivery materials.

Supply Chain Visibility

The supply chain industry is expanding, and the number of shipping options out there is larger than ever before. Because of this added complexity, the first step in any supply chain optimization project is gaining accurate and comprehensive visibility to all the links in the chain. This holds true for packaging analyses as well. Zero Down’s success in finding savings is driven by the supply chain visibility provided by our proprietary advanced logistics platform, FreightOptics. Our best-in-class system seamlessly pulls together inbound and outbound dimensional and weight-based rating data, across all modes, into one easy to use hub. From there, our team of supply chain experts can recommend savings opportunities that will dramatically affect a company’s bottom line. Here are just some of the factors our team takes into consideration during the packaging analysis:
  • Labor and warehouse costs

  • Dimensional costs versus weighted costs

  • Packaging/sizing opportunities

  • Inventory management

  • Damaged goods and return ratios

Benefits of a Packaging Analysis

First and foremost, the number one reason to work with a logistics partner to perform an expert packaging analysis is to save money. These days, shipping and transportation costs are a sizable portion of many businesses’ budgets. Potentially saving 15% of those costs can make a massive impact on any company’s bottom line. Besides the direct savings in shipment costs, increased packaging efficiency can lead to additional savings in warehouse and labor costs as well. Finally, efficient packaging can also lead to fewer returns due to damage, and thus higher customer satisfaction and retention. Modern supply chains are complex creatures. An expert packaging analysis is just one of the ways to stop profits from leaking out of the chain, but there are many more. To fully utilize and optimize a supply chain’s potential, it takes an advanced system capable of breaking down that complexity into easily viewed, actionable insights. To continue the conversation, and find all the areas where profits are leaking out of your supply chain, please reach out to us for a Free Demo today.

You Can Be Better. We Can Help.