E very detail in the supply chain tested in search of new efficiencies and advantages. Packaging is among those components to receive a heightened emphasis in recent years, resulting in new innovations that are helping in a variety of critical ways. “The profile of packaging has never been so high,” says Rachel Fellows, sales director for retail & 3PL national accounts for Macfarlane Packaging, a distributor of protective packaging products. “Retailers have high today is under the microscope to be studied, examined, weighed, and expectations for their packaging and all stakeholders’ demands need to be heard and considered. “Balancing the different priorities of various departments within a packaging solution is a complex task, especially when sustainability and circularity remain at the heart of the decision- making,” she adds. The challenges those in the supply chain face now are less intense than during the pandemic. Though that might lessen the pressure of the moment, “companies are becoming more flexible in making changes in order to keep their supply chain agile,” says Brian Techter, senior vice president, packaging solutions, forms and labels for RRD, a Chicago-based company that provides marketing, packaging, print, and supply chain solutions. Packaging is changing in a climate that requires adjustments. While packaging and label decision-makers began to see some supply chain and market conditions stabilize in 2022, 87% of those participating in RRD’s 2023 (Un)Packaging Reality survey still report that disruptions to their global supply chain prompted their organization to change how it sources packaging or labels. Of those respondents, 72% had to make packaging selection changes during the year. Nearly three-fourths of respondents made changes to minimize cost, and 60% altered their designs for efficiency and transportation cost reductions.
“You almost have to apply for an exception or exemption to be able to use certain types of packaging material because countries don’t want them to be added to their waste streams,” Johnson notes. Sustainability in packaging remains a top priority for the industry, with 90% of decision-makers in RRD’s report calling it a key consideration. Innovations such as the reduction of material waste (72% of respondents), material recyclability (66%) and the inclusion of recycled material (50%) are among the key areas of focus in sustainability packaging trends. Sustainable packaging can include biodegradable, compostable, or recyclable packaging options and might include lighter packaging solutions that provide the same level of product protection as heavier counterparts. Circularity—when an item is renewed or regenerated rather than wasted—is also a component of sustainability gaining attention and exploration. “Packaging designers consider the question of how to produce material more sustainably without negatively impacting performance so retailers can focus on getting the highest- quality products without sacrificing effectiveness,” Techter says.
The survey also shows that packaging decision-makers are planning their selections more in advance than in the past. “Based on this data, we can see companies paying closer attention to how, where, and what packaging materials they source, and how that will affect their overall supply chain,” Techter says. “It’s an intricate process, not a one-size-fits-all.” SUSTAINABILITY GAINS ATTENTION No topic in packaging today is getting more attention than sustainability. “Sustainability was just about all everyone was talking about” at a UN Subcommittee Meeting of Experts on the Transport of Dangerous Goods in July 2023, says Jay Johnson, senior manager of Labelmaster Services at Labelmaster, a provider of products and services for dangerous goods and hazardous materials transportation. “Five to 10 years ago, people complained about the cost of packaging, but they weren’t as worried or mandated to get packages back, or to use them again, or to not use certain types of materials to ship because of how they impact the landfills and the waste streams,” Johnson says. “But we’re getting that now.
Packaging that integrates technology such as RFID labels enables item-level tracking to optimize inventory management and supply chain efficiency.
August 2023 • Inbound Logistics 39
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