Packaging and Logistics software: Allies in Business Improvement

Madrid, Sep 26, 2023 – It is common knowledge that logistics and packaging are key elements of the supply chain, especially if the design and management are optimized. As the logistics industry becomes more competitive, more logistics software solutions and new packaging designs are being marketed, making the difference between winners and losers.

Therefore, it is advisable to know how packaging and logistics software can improve the supply chain and combine to gain efficiency and profitability and provide a better customer service.

The twelve commandments to improve operations thanks to packaging and logistics software

1. Efficient inventory management: Logistics software can be integrated with a company’s inventory management systems, enabling real-time tracking of products from the time they are packaged until they are delivered. This enables more efficient inventory management, product planning and replenishment, and prevents losses, stock-outs, or excess inventory.
2. Route and shipment optimization: Logistics software uses algorithms to calculate the most efficient delivery routes, considering factors such as geographic location of destinations, traffic, time constraints and vehicle capacity. By combining this optimization with appropriate packaging, delivery times and associated costs can be reduced.
3. Freight optimization: This is a prerequisite for improving freight transportation. Otherwise, companies lose profitability due to transportation costs. A common bad practice is the inappropriate use of packaging that is larger than necessary. Therefore, the use of more packaging types of the right sizeprovides a true picture of the capacity of the vehicle fleet and avoids empty and wasted space.
4. Tracking: Logistics software enables shipments to be tracked and traced, providing detailed information on the status and location of packages in real time. This not only improves transparency and customer confidence, but also helps detect potential problems or delays in deliveries and provide a quick and efficient response.
5. Traceability: Traceability is achieved through a labeling system, either a barcode or RFID label that is usually affixed to the packaging. However, there are new cost-saving methods provided by logistics document software such as direct printing on the cartons that eliminate some of the complexity of the coding system on the production line.
6. Personalization and customer experience: Packaging can serve to enhance customer experience. Using logistics software, it is possible to collect information on customer preferences and needs, allowing packaging to be personalized and tailored to each customer. This provides a more custom experience and improves brand perception.
7. Reduction in costs and waste: The right packaging can help reduce shipping costs and minimize waste. For example, by using lightweight but strong packaging materials, the weight of packages can be reduced as well as transportation costs.
8. Returns management: Logistics document software facilitates returns management by streamlining the process and providing real-time information on the status of returned products. This minimizes returns processing time and automatically improves customer satisfaction.
9. Logistics hubs and production control: One of the levers for optimizing the supply chain is to adjust production management to distribution capacity and expected demand. Packaging is an essential element of the product in several ways, both in terms of marketing and safety when transporting it. Packaging production must be aligned with product production to avoid bottlenecks in the supply chain.
10. Warehouse management: Logistics software allows allocating storage locations, monitor stocks, and manage and prepare orders. It also helps optimize the distribution of products in the warehouse and automate processes such as receipt, picking and packing.
11. Integration with business partners: Logistics software can be integrated with third-party systems, such as transportation service providers, customs, or e-commerce companies. This facilitates communication and data exchange across supply chain players, improving overall coordination and efficiency.
12. Analysis and reporting: The logistics document software offers reporting and data analysis capabilities. Users can gain valuable insights into supply chain performance, identify areas for improvement, spot trends and make informed decisions.

Moreover, all this can be achieved while respecting the environment and adopting sustainable practices and strategies.

Operational sustainability of packaging and logistics software

Four strategies can be implemented with respect to packaging to ensure sustainability:

• Minimize the use of materials: The aim is to use as few packaging materials as possible without compromising product protection. It is necessary to look for lighter alternatives and reduce the size of packaging to minimize the use of resources.
• Use recyclable and biodegradable materials: Carriers should opt for packaging materials such as cardboard, paper, compostable materials, and bioplastics, and avoid the use of single-use plastics and non-recyclable materials.
• Smart packaging design:The time has come to design packaging that is easy to recycle, disassemble or reuse. It should incorporate elements such as peel-off labels, reusable closing systems and separable materials to facilitate recycling.
• Sustainable packaging: Sustainably sourced materials from certified and responsibly managed sources must be used. This promotes traceability and the use of materials from sustainable forests.

In terms of logistics, industry companies can take better care of the environment if they establish these five best practices:

• Route optimization: By minimizing the distance traveled by carriers, greenhouse gas emissions are reduced.
• Shipment consolidation: Ideally, shipments should be grouped whenever possible to reduce the number of trips and fuel consumption.
• Use of sustainable vehicles: It is advisable to incorporate transportation vehicles that use renewable energies or that are electric, hybrid or low emission. It is also necessary to maintain vehicles properly to ensure efficient operation.
• Reusable packaging: Reusable packaging, such as pallets or returnable containers, can be used instead of disposable materials, thus reducing waste generation, and optimizing the use of resources.
• Waste management and recycling: Logistics operators must implement an adequate waste management system in their operations and encourage the recycling of materials and the proper disposal of waste, including the recycling of cardboard, paper, plastic, metal, and other recyclable materials.

In conclusion, packaging and logistics software can be intertwined to improve efficiency, reduce costs, optimize customer experience, and facilitate inventory and shipment management. By leveraging these synergies, companies can gain competitive advantages in the marketplace while being allies of the environment.

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