Six Effecting Ideas to Reduce Logistic Cost in Consumer Goods Distributions

E-commerce has just changed the way of business. Now, you can buy and sell everything online from the comfort of your home and town. Globalization has brought the entire world closer; however, it has increased the work of logistics. You can shop whatever you need from any other country and city, but the logistics cost is one of the biggest tension for small and medium enterprises. Due to the across-border shipping, you need to pay a high price on shipping; however, here are a few ideas by which you can reduce the logistics cost.

  1. Collaborate with Other Shippers

Many of you will find it a stupid idea, especially joining hands with your competitors; however, this is one of the best notions to cut the cost of shipping. Many companies do not want to collaborate with other shippers, but it can solve the problem of small and medium-sized companies. Especially, for an entrepreneur, this idea will definitely be going to work. At the initial stage of the evolution, every business needs to cut down the expenses, and logistic cost can engulf your budget; therefore, you need to generate a solution that can provide you the best services at the economic rate.

  • Combine Sales and Inventory Data

Many companies do not scrutinize their entire sales system, this sluggish behaviors lead them to pay extra on the shipping. Thus, they need to combine the sales and inventory data in their system. Before stepping into the next order, you should know the available inventory; however, do not mix up the numbers. The radical thinking will say this is not an easy process, you might end up in the crucial analysis, but you need to do it to cut the cost of logistics.

  • Try to Implement Cross-Docking Phenomenon

This is another effective way to cut the cost of shipping. This phenomenon allows you to unload the merchandise from the inbound delivery trucks and load them onto the outbound vehicles. This direct loading and unloading will save you time and cost.

If you are a struggling entrepreneur, you cannot afford or manage the cross-docking, then you can take the help of a 3PL partner. They will strategize to cut the cost of logistics and implement the resources of cross-docking.

  • Build a Packaging Unit in the Distribution Center

Many retailers do the mistake of sending their packages from the distribution centers to the packaging firms and then back to the distribution centers. This increases the cost of logistics. They do not leave their goods at the factory or distribution organizations. Therefore, to reduce the shipping cost, a company or factory must need to build a packaging unit in the distribution center, so you can eliminate the cost of sending your packaging from one point to another. This way you can decrease the freight cost.

  • Try to Reduce Chargebacks

Large Consumer Packaged Goods (CPG) companies have the assets to monitor chargebacks. You must have similar resources to reduce the chargeback fee, otherwise, you will have to pay a hefty amount and it will increase the logistics cost. Therefore, you need to collaborate with a shipping company that will ship for the multiple CPG companies and police outbound shipments.

  • Increase Orders Capacity

As a business or factory, you need to make your consumers happy. When they are liking your products ultimately your sales will surge. You can take the benefit from the digital customers experience feedback. When you can make your customers happy, you will receive high volume orders. The bulk shipment will reduce the cost of logistics.

Tamper-Evident Packaging: Benefits And Impact On The Environment

Tamper-evident packaging carries the responsibility of protecting the packaged items in the most sophisticated and effective way possible. According to the FDA, tamper-evident packaging uses various barriers, which, if tampered with, instantly show the customer that the product is not fit for use. Tamper-evident packaging often has tamper-resistant characteristics to make the product more secure during transit.

The benefits of tamper-evident packaging

The most notable benefit of tamper-evident packaging is its ability to protect the product from damage and contamination. This packaging option ensures product safety and alerts the customers in case the package has been tampered with.

That said, we will now discuss some examples of tamper-evident packaging.

  • Most ice-cream packaging firms used shrink bands to secure ice-cream lids. These bands are also well-suited for packaging applications that use lids or caps to protect goods.
  • A button-top lid for jarred foods creates a pop sound when opening for the first time. It no longer produces a pop sound after first use. If you have a product in hand with similar packaging, and there is no pop sound when you open the lid for the first time, it means that the package has been tampered with, and so you are going to have to return it back.
  • Most companies that send envelopes, boxes, and pallets use tamper-evident industrial tape. The presence of this tape ensures receivers that the shipment has not been tampered with during transit or storage.
  • Some labels utilize RFID technology to let consumers trace the shipment during transit.

Drawbacks of tamper-evident packaging

The problem with tamper-evident packaging is that it might become too hard to open for end consumers. It is, therefore, necessary for packaging companies to make sure to maintain a fine line between the product safety and ease of use. In today’s era, many customers avoid brands whose product packaging is too hard to open.

It could mean the need for application and testing of packaging materials quite some times before finally launching the product using those packaging materials. You may also want to discuss this matter with a packaging consultant to have a better idea regarding the safest tamper-evident packaging options that also remain easy to use for end consumers.

The environmental impact of tamper-evident packaging

Blister packs used for the packaging of over-the-counter drugs are generally hard to recycle. This packaging combines two different types of materials, which are very hard to separate from each other. As a result, packaging wastes consisting of such materials end up in landfills or oceans. It means that tamper-evident packaging generally remains hard to recycle.

Some companies such as PLACON, however, have taken initiative to keep the environment safe from the impact of tamper-evident packaging. This company has worked quite well to produce tamper-evident packaging that consists of eco-friendly materials. These materials do not use labels and shrink bands, making the overall packaging recyclable. We can expect other companies to follow this suit and deploy the same measures to create eco-friendly tamper-evident packaging materials.

If you want to use these materials for the packaging of your products, you may want to discuss everything from feasibility to environmental impact with a packaging consultant.

Stretch Wrapping And Protection Against UV Radiation

When it comes to securing pallets of shipments, there is no better option than stretch wrapping. The stretch wrap film wraps around the stacks and bundles of products to make them ready for storage and shipping. However, you may be concerned about the ability of your stretch wrap film to protect your loads in an open environment with an abundance of sunlight and other external factors. Ultraviolet radiation is known well for being highly destructive to plastic packaging materials.

Here, you may want to know the duration of the effectiveness of your stretch wrap film. Most stretch wrap films start degrading after 30 days of outdoor storage. Alternatively, you can consider choosing a stretch wrap film that has UV stabilization characteristics. Construction industries, building material companies, and companies that have to keep their stocks in open storage due to any reason consider using UV stabilized stretch wrap films. They use these films to protect their stocks from getting exposed to UV radiation.

How does a UV-stabilized stretch film work?

These films use an additive that prevents materials used in the making of the film from breaking down under the sunlight. A normal stretch wrap film is made of polyethylene, which tends to break down when exposed to sunlight. As a result, it loses its ability to cling to any surface.

A UV-stabilized stretch film is quite similar to the regular stretch film. The additive, which makes this film UV-resistant, is added during the manufacturing process. Using this stretch film allows you to put your stocks in open storage for up to one year. The amount of stretch film used also determines the duration of the wrap’s effectiveness.

Why should you use a UV-stabilized stretch wrap film?

Most plastic materials that you use as a wrapping option to protect your stocks of products tend to become yellow, chalk down, become discolored, and breakdown completely, respectively. A UV-stabilized stretch wrap film, on the other hand, slows down the breakdown process significantly.

The UV-stabilized stretch wrap film presents an advanced stretch wrapping option, which is far better than other regular stretch wrap films. If you have large stocks of products to manage, and you know that you are going to run out of warehouse space while doing so, you can consider using a UV-stabilized stretch wrap film, which will protect your goods for a longer duration from UV rays. The extra gauge combined with UV-resistant additives in the composition allows this film to be a well-suited option to protect every kind of pallet load, whether it has to remain in outdoor or indoor storage.

Another quite impressive characteristic of this film is its ability to resist punctures during transit or storage. The quality of being highly stretchable prevents this film from developing any punctures in response to the impact of sharp objects coming in contact with it with mild pressure. It will develop a puncture if you deliberately press the tip of the needle against it, as it is a thin plastic film after all.

You may want to speak with your packaging supplier if you need to get this film for your pallet wrapping applications.

Take Advantage of Automation in the Time of Competition

Automation has changed the way of production; however, it has raised the profit as well. A manual procedure cannot get you there where automation will lead. Well, technology is constantly progressing. Everything is adopting a few more advanced features in the machinery and other business operations. One of the best parts of automation is that it has lessened down the workload and burden on the laborers. Moreover, high-tech is taking less time to finish up the projects. Therefore, automation has become a vital component for almost every business. Evolved technology has enabled conveyors to grow fast than ever before. 

However, automation is playing an integral role in enhancing productivity and the overall efficiency of the business. It has given an immense impact on the processing and packaging lines to elevate their production and profit. Thus, take the advantage of automation and the high-tech techniques to stand in the market and yield most of it. Well, to apply automation in your conveyor system, you need to start with the audit of the entire packaging procedure. Examine that your current operations, either they are meeting the production goals or not. Innovation and advancement will be going to increase your profit and productivity; however, you need the right direction and a planned work-frame. Moreover, sometimes the new features do not work for you because of your poor audit, or perhaps you do not need to adopt such changes, but you understand it later. Thus, the scrutinization of your line will assist you in taking the best decision for your company.

Well, if you are seeking help for your audit, you can take the assistance of OEM or packaging systems. These are the best reputable conveyors who will evaluate the shortcomings of your packaging line. Moreover, the key features will inform the company about the productivity’s efficiency and the entire conveyor system’s weaknesses. Thus, you will be able to understand the relationship between each element, interaction of the different steps, weak areas, firmness of the company’s goal, and the components that need improvement. Such companies will run the Overall Equipment Effectiveness (OEE) technique to evaluate the true picture of the packaging line.

Overall Equipment Effectiveness (OEE)

However, Overall Equipment Effectiveness (OEE) has become one of the standard techniques to measure the productivity of the packaging line. It presents the results in percentage form and emphasis the weak areas. Thus, it is one of the strongest tools to exhibit the company’s performance and actual productivity. An organization can identify its own definition, goals, vision, waste, and losses. Moreover, you will get to know how much-advanced equipment you need, where can you implement the automation. Every equipment needs audit and improvement. A deep evaluation will help you out and you will able to upgrade your production and profit.

One of the best examples of automation and innovation in the packaging line is the use of robots. We have seen that from the past few years the companies are taking the advantage of robots. They have made the work easier and faster. You have seen robots in many places like in the food serving process, medical, pharmaceutical, life sciences, and other industries.

Well, the advantage of the use of robots is it has improved the work timing and efficiency, ultimately it has raised profit and productivity. They have lessened down the workload and burden; however, they have replaced the manual labor. Therefore, there are different opinions regarding the use of robots and automation as well. Some people are worried about the increased use of automatic machinery and high-tech that they are eliminating jobs.