Packaging must serve e-Commerce and the environment

study shows that 24% of the volume of packaging used in the e-commerce circuit, is empty space. In the fashion industry, the number tends to increase, given the "lack of structural rigidity of clothes and accessories shipped via logistics channels. This adds additional costs to the industry". It is also noted that the biggest challenge currently facing packaging systems has to do with optimising the space within the packaging and adequately protecting the products while operating at large scale and high speed.

It is impossible to approach this topic without touching on the topic of plastics, with packaging of this material accounting for around a quarter of the approximately 8.3 billion tonnes that have already been produced since the 1950s.

In 2016, each EU citizen was responsible for 170kg of plastic waste, with only 14% of packaging of this material actually being recycled, those that go to landfill take 450 years to decompose.

Accordingly, the study conducted by DHL among its customers and partners concludes that nine out of 10 companies consider that packaging will play an important role in the next three to five years. According to the document to which ECO had access, the overall volume of shipped products is increasing, driven by globalisation and e-commerce, causing packaging to pass through longer and more complex international logistics networks.

"Express parcel shipping and increasingly popular subscription services result in frequent shipments of single items, contributing to an increase in carbon emissions and packaging waste. The diversity of e-commerce products has led to new challenges and packaging. Customers questioned are faced with how to keep packaging costs at a reasonable level, manage the number of damaged parcels in transit, as well as optimise available transport capacity," the study reads.

In turn, consumers have high demands when it comes to e-commerce, which are reflected in receiving orders in the shortest possible time, damaged packaging and not having to deal with waste with every online purchase. Of those surveyed by the DHL study, 50% of consumers reveal that if they receive a package with signs of transport damage, it is enough for them not to buy from that supplier again.

Vice President and Global Head of Innovation and Business Development at DHL, Matthias Heutger, offers some solutions "The trend report and our customer survey illustrate the importance and positive customer experience that simple, recyclable and robust packaging offers. However, the speed at which the needs of businesses, consumers and the external environment change, increases costs and reduces efficiency. We believe that the adoption of new tools to optimise packaging, materials and handling technologies will significantly boost efficiency and productivity. In turn, this scenario will drive changes in the operation of supply chains and logistics processes."

The demand for packaging has been growing across all industries. However, in the automotive and technology sectors, supply chains must evolve to accommodate the growing volume of delicate and high-value components, the study said. In healthcare, logistics professionals must ensure safe and proper delivery. Yet, as e-commerce replaces traditional trade, packaging delivered to the door is now the critical point of contact between consumers and brands.

The DHL study concludes that "the logistics sector will play a key role in reducing the costs, setbacks, and environmental impact of packaging", so it must adopt new technologies, materials and processes across the value chain, such as packaging optimisation and automation, sustainable materials in its production, reusable packaging and reverse logistics, and smart packaging technology.

This article is republished under the partnership between Nova SBE Executive Education and Supply Chain Magazine » Read the original article