Packaging: Is It the Missing Link in Your Logistics Chain?

Reverse Logistics Magazine, Mar/Apr 2008

It is true that almost anyone can package an item using a cardboard box, some bubble wrap, and a roll of tape, but is that enough when items are heavy, valuable, oversized and awkward. The right packaging is often hit-or-miss or even non-existent in a company’s supply chain, escalating the chances of damage, security breeches, lost privacy and theft opportunities. With a few tips and the right logistics partner, packaging should no longer be the missing link when your leases expire, equipment breaks down or your data center consolidates.

Product and Transportation Analysis

Packaging concerns are not exclusive to any particular company. Every business has leases, returns, exchanges and end-of-life assets to deal with. When selecting a logistics provider, ask for an on-site product and transportation analysis that includes the handling, distribution, mode of transportation and origin and destination factors needed to develop product specific engineered packaging. Product characteristics requiring review include size, weight and weight distribution, susceptibility to abrasion and corrosions, effects of compression, vibrations and fragility.

With a completed analysis in hand, a company has greater flexibility to make the right cost-effective packaging choice whether it is a custom wooden crate or a standard size cardboard box. Take the example of a large multi-location call center company. On any given day the company may need to move 50 high-value computers over 2,300 miles of bumpy highways to another center, while sending 50 other computers to the scrap heap 30 miles away. By understanding the type of product that is going to be shipped, where it is going and why it is being moved, gives the call center the flexibility to make different packaging choices and dispels the idea that one package solution fits all.

Custom Packaging versus One-Size-Fits-All

Protective packaging solutions, including custom engineered containers, cushioning, waterproofing and support that meet specific product fragility and shipping requirements, can ensure safe travel to the final destination. Companies often fail to fully anticipate the impact of shock and vibration or how far a package can be dropped, leading to a high probability of damage.

By properly accounting for the size, footprint, weight, and sensitivity of the item being shipped, the correct foam densities and other packing materials can be selected. If there are a number of packages being shipped as a unit, skids and pallets should be considered as platforms to handle and transport the items safely.

Reusable containers are sometimes a good option if a company ships a lot of the same size and kind of assets frequently. These containers can be refurbished and repaired to curb costs and are environmentally friendly. Although, fractionally more expensive on the front-end, the ability to re-use the same container saves money in the long run.

Standards

Even though custom packaging options are available, it is important to know packaging standards exist when needed. What standards are used might depend on the security, size or value of the shipment. Logistics providers should be able to explain what standards and practices they follow for packaging.

For instance, vapor barriers are essential for crates being transported internationally. Packages being shipped offshore are subject to the International Standards for Phytosanitary Measures No. 15 (ISPM-15). This requires that all solid wood packing material be heat-treated and stamped with an official mark.

Documentation, Security and the Chain of Custody

Several options are available to ensure proper tracking and security control of a shipment. Packages should be clearly labeled with information that is important and meaningful, including purchase order or serial numbers. This same information should appear on packing lists so that packages can be checked-off at their origin, destination, and points in between to minimize theft and losses. Always ask about real-time tracking options.

Package bar codes create greater handling efficiency and accuracy. They are especially effective for large logistic projects. One reseller recently returned 1,200 crated servers to its 100,000-square-foot warehouse. If it were not for labeling and bar coding, crates would have to be opened to check the contents, as well as determine their origination or destination point.

Package security can be customized depending on the level of security required. Sometimes packages can only be sealed or opened within view of witnesses or sealed with tapes that will show if they have been opened or tampered. Drivers can be denied access to locked trailers while in route and tracking systems can set off alarms if a truck stops for more than 20 minutes.

Chain-of-custody is always an important packing question. Some Internet providers have no consistent chain of control over packaging. This can lead to security breakdowns. When initiating a logistics project, ask the provider what they handled in-house, what assurances and insurance are available, and where they are “really” located. Packaging partners with actual “brick and mortar” locations, instead of virtual sites, can provide true shipping chain-of-custody.

Hire Experience or Do-it-Yourself

Trust is built on experience. When seeking a logistics provider, look for a history of shipping “like” assets. For instance, a finance company may need assurance safeguarding proprietary information such as social security numbers, while an electronics manufacturer may require antistatic packaging options. Each client and their industry have their own packaging and crating needs. Packaging solutions must take into account that hospitals have potential biohazards while the aerospace industry works with hazmat. Remember to inquire about a provider’s international skills whenever offshore packaging is involved.

If a company decides to do the packaging themselves, the big question to ask is what are the potential losses and gains in terms of costs, security and safety? Should the company’s highly trained technicians be used to package equipment? Is a package just a box and cushioning or is it more than that? Does one size really fit all?

Safe and secure. Damage-free. On-time. Cost-savings. These are all the results of proper packaging. By asking the right questions when putting together a logistics plan, companies can transform packaging from the missing to the strongest link in their supply chains.

Diane Gibson is the President and Founder of Craters & Freighters. Craters & Freighters, founded in 1990, is headquartered in Golden, Colorado and is the national leader in specialty freight solutions, providing expert packaging, crating and shipping services from locations nationwide. The company expanded nationally through franchising beginning in 1991. For more information, visit www.CratersandFreighters.com.