In the world of ecommerce, having just the right sized box can be both challenging and beneficial. Challenging? You might ask how it could be challenging to put stuff into the right sized box. Well, an ecommerce order can often include products of diverse shapes, sizes, weights and packaging needs. Fulfillment providers must warehouse packaging that anticipates the size requirements for orders that can take on very different needs depending on the products purchased in a given order. This makes the predictability of packaging types a tricky and often neglected part of supply chain management. It also requires maintaining a balance between cost, quantity and variety of sizes.
Most companies will use the anticipated order volume to estimate the number and quantity needed of a given box size and associated packaging materials. By ordering larger quantities of a given packaging size there are cost advantages. This is where the balancing act comes in. Depending on the variety of products a given ecommerce company is selling on line, the impact of trying to anticipate all the "right sized" packaging needs and keeping them in stock can be a costly in terms of the actual materials, management as well as storage. And, that assumes that forecasting could be accurately achieved that takes into consideration the many different product compositions across all orders, weight and packaging requirements.
However, minimizing carbon foot prints by lessening the packaging materials that hit our waste management centers is a corporate obligation and mission for many companies today. In fact, it is estimated that 30% of all trash is generated from containers and packaging. Many customers are demanding that they companies from which they make their purchases are looking to find "green" solutions to distribution. And let's not forget the business requirement to save shipping costs by sending few packages, storing less and spending less time managing the process.
Warwick looked to find a solution to this age old issue for its ecommerce clients and recently installed Packsize's On Demand System. On Demand Packaging® is a revolutionary packaging system that lets companies produce the right-sized box exactly when they need it. It removes any worry and cost associated with paying too much for box inventory, void filler, inefficient use of warehouse space, and many other packaging-related problems. In essence, On Demand Packaging® is the latest evolution in lean manufacturing. Packsize On Demand Packaging® improves the old "store and retrieve" packaging process by placing a corrugated converting machine with a very small footprint together with a stack of corrugated material directly on the pack line. This allows the instant creation of a box that perfectly matches the product that is to be packaged and shipped.
"When we talk with prospective clients we often hear that their products are shipping in boxes that are deemed as not the right size for the content. Their customers are increasing sensitive to this as they don't want to be paying to have "air" to be shipped and the end consumer is increasingly green conscious and does not want to contribute to extra waste going into the local dump. We have just started to roll out this service to our clients but already are getting good response. The system is easy to use on the warehouse floor and gives flexibility to order composition size that has never before been seen," stated Mike Wilt, Warwick's President.