While the full effects of E-commerce remain to be seen, one legacy that affects all distributors is that more products are now being shipped directly to the consumer through the single-package environment. Here individual cartons are handled primarily through parcel carriers, in contrast to the traditional distribution model that is accustomed to processing pallet loads. Single cartons must endure more direct handling, increased automation and a higher number of individual transfers. Added to all of this is the need to create a favorable impression on the receiver.

"Today, packaging is not just protecting products, but is also creating a perception," says Chad Thompson, package engineering manager for UPS Professional Services, a subsidiary of United Parcel Service whose mission is to help customers design a packaging strategy.

If the package arrives damaged or soiled, the customer is more likely to go elsewhere next time. There are also additional costs besides the potential loss of a customer. Damaged items require replacement. This includes the expense of processing a return plus the costs of added inventory, transportation, and labor. With some companies this can get into millions of dollars.

Thompson works with clients to test packaging methods to determine how best to protect products at the most reasonable costs. The testing procedures simulate what the package will endure in the real-world environment.

"The goal is to find the right balance between product protection and lowest possible cost," adds Thompson.

Sometimes this involves changing the grade of corrugated container used to one with a higher box-strength rating. Dunnage is also tested to find the best type to use for protection of particular goods. Often consumers prefer to receive cleaner dunnage that can be easily recycled of disposed of, such as air pillows.

"The quality of the product will influence the packaging requirements," says Thompson. "Fragile glassware must be packed differently from engine blocks."