Other Voices: Four benefits 3PLs can bring to a packaging operation

Editor’s note: The following column by Alicemarie Geoffrion, vice president of packaging solutions, DHL Supply Chain, North America, is part of Modern’s Other Voices column, a series featuring ideas, opinions and insights from end-users, analysts, systems integrators and OEMs. Click here to learn about submitting a column for consideration.

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Packaging is no longer as straightforward as simply placing a product in a branded package at the end of the manufacturing process. Packaging is driven by changing consumer demands and expectations, as well as supply chain efficiency initiatives. Packaging has become a strategic component of the entire supply chain. Additionally, the rise of e-commerce is driving disruption across supply chains. As a result, every aspect of the supply chain is being transformed and reinvented, especially the packaging operation.

It is within this context that companies must make a very important decision: to keep their packaging operations in-house or to use a 3PL (third-party logistics provider).

The four primary benefits 3PLs can bring to packaging operations to help customers evolve their logistics strategies are as follows:

1. Integrated Packaging Facilities
While supply chains are scrambling to keep up with customer demands and expectations, they must not lose focus on their underlying goals: reducing costs and increasing efficiencies. One way to achieve this is to reduce the number of touchpoints and travel distance throughout the packaging process. 3PL facilities are being designed and configured to integrate packaging operations into distribution centers. Not only can this reduce freight costs, but it can also provide more control over products, facilitate more efficient use of resources, and minimize opportunities for product damage.

2. Customization Enabled
A one-size-fits-all approach to packaging is no longer viable. 3PLs are set up to effectively implement and manage a packaging operation that enables products to be modified and customized at the final stages before transport to customers. Many companies are under pressure to explore new packaging assortments, special sizes and configurations, and other product customization to support in-store promotions and brand differentiation on the shelf.

Postponement and customization strategies allow companies to more cost-effectively make decisions and adjustments at the very end of the supply chain. This is ideal for the production of popular, high-value promotions that allow retailers to design their own products and packs. It is also vital to incorporating any last minute changes or reconfigurations that come in as the product is being stored and prepared to ship.

3. Highly Scalable Supply Chain
3PLs can help companies gain more control, consistency, and predictability with packaging while offering the flexibility needed to quickly react to changing demands. 3PLs leverage their labor management and packaging capabilities to handle sharp seasonal peaks and fluctuations, the launch or expansion of new product lines, and the addition of new markets and geographic locations capitalizing on quickly evolving market trends or opportunities. Flexibility in the packaging supply chain ensures companies can maintain a competitive edge in the marketplace.

4. End to End Packaging Solutions
As consumers become more demanding, companies are looking to consolidate their supply chains to drive efficiencies and savings. 3PLs are expanding service offerings to include the demand planning, sourcing, and procurement of packaging materials to connect upstream activities with downstream operations. By doing so, 3PLs can identify opportunities at the beginning of the supply chain to drive labor, production, and cost efficiencies through distribution by leveraging downstream knowledge throughout the upstream packaging process.

In today’s environment where disruption is occurring at an accelerated pace across all industries, the pressure is on supply chain companies to continually innovate to stay competitive. Turning packaging operations over to a 3PL can provide greater control, efficiencies, flexibility, and innovation while allowing companies to focus on core aspects of their business, such as production and manufacturing.