The role of packaging is important in supply chain operations as it impacts cube on trucks, inventory storage, product safety, regulatory compliance, and customer satisfaction. Packaging errors can result in premature spoiling, cross contamination of products , consumer illness and sometimes even fatalities. They are often the root cause of massive recalls, excess and obsolete inventory costs, and can often be prevented through a clear error-proofing process. Companies face several packaging-related issues like: Innovative solutions in packaging delivers more efficiency in supply chain operations through: Cost Reduction A holistic view on packaging within the supply chain, can enable cost efficiency from improved logistics to transport efficiency and reduced product waste. Compliance and Safety Supply chain partners can keep companies aligned with the changes in packaging regulations and help follow national and international standards. Having the right packaging solution will provide efficient, safe, and cost-effective movement through the entire supply chain. Finding innovative solutions to packaging is essential for finding fixes to the supply chain problems. There are several approaches to developing such solutions. One is to ensure more collaboration between supply chain and packaging experts to develop optimal packaging formats for specific products. Standardization- The performance of packaging in logistics operations are highly affected by the level of standardization of packaging, material handling equipment, vehicles and information and communication technology. Standardization aims to eliminate waste, duplication of work and redundant activities. In general, a high level of packaging and logistics standardization often leads to lower logistics cost. However, the risk of lock-in effects should be considered in the decision to standardize Optimizing packaging- To optimize packaging, one can make design changes such as shaving off a few millimetres from a package or using lighter yet durable materials. Lightweight models for easy transit or strong and durable varieties for repeated use are just a couple of examples. The key element here is to reduce weight, achieve more storage area and use floor space as well as height effectively. For instance, heavy-duty plastic units can be stacked six high, whereas traditional units such as cardboard boxes can only be stacked two or perhaps three high without increasing the likelihood of costly damage. Ensuring Pallet hygiene- Storage conditions can be an entry point for pathogens and permit the growth of pathogenic and spoilage microorganisms. Proper post process storage of products is crucial, especially in case of food products. Conventional packaging materials such as wood and cardboard can be problematical. Wooden pallets that are not treated properly may be prone to insect infestation and often must be scrapped. Storing wooden pallets in wet or humid conditions and poor ventilation in warehouses can both contribute to fungal growth. A hygienic pallet box made from pure virgin plastic rather than cardboard or wood which would eliminate the drawbacks of wooden pallets is a prime example of a new product that might improving hygiene standards in the supply chain. Sustainability- In recent years biodegradable non-plastic packaging and films have begun to immerge as an alternative to standard packaging. Biodegradable packaging is produced using biopolymers which can be safely consumed and degraded quickly. The materials are layered together using heat and pressure to form an armor which protects the contents from light, oxygen, air, dirt, and moisture. Many companies especially in the food industry are quickly adopting use of cartons which are lightweight, easy to transport and completely eco-friendly. As a critical component of freight operations, packaging is an important factor in supply chain efficiency. Logistics demands for packages that can be easily handled throughout all processes. It should fulfill requirements from various organizational units and areas. Packaging should also have a minimal environmental impact and fulfill ergonomic and legal requirements. The challenge now is to promote the wider adoption of innovative concepts in packaging that ensures safety and quality along with cost efficiency and sustainability.
With the advent of 2022, we are all gearing up for changes, as individuals and as organizations. Reformed environmental standards for all industries, COVID-19 management, and the rise of enhanced technologies capable of bolstering supply chains are among the few revolutions we can expect.While many food supply chain experts are contemplating what they want to bring to the new year and what they’re ready to leave behind, here are ten resolutions to assist food brands in developing the supply chains of the future. 1. Plan and Play Smart The pandemic showed us the fragility of the supply chains. Food brands reinvented their business models and went online to serve their customers. They had to find a way that required to address the fluctuations in demand and supply. Supply chains need real-time visibility to plan scenarios, optimize inventories, be pro-active to change and to make decisions. 55.73% of supply chain professionals are willing to invest in production planning and demand forecasting according to research by finance online in 2021. Integrated Demand Planning ensures real-time supply chain planning from sales and operations planning to forecast, demand response. 2. Invest in Employee Safety Workplace health and safety policies help firms grow by retaining productive and qualified employees. It also provides a contingency plan for workforce assurance that can otherwise cause supply chain disruptions. Every organization must prioritize its people in order to maintain consistent growth. According to data provided by the Occupational Safety and Health Administration, employers who establish employee safety programs are able to reduce costs related to injury and workplace illness costs by 20 to 40 percent. The key to ensuring worker safety is to minimize hazards and providing an environment that places high importance to healthy practices and enabling employees to easily avail medical facilities. 3. Gain visibility to strengthen the value chain According to a survey covered by finance online, 40.02% of supply chain professionals want to invest in real-time supply chain visibility. Having visibility across the entire supply chain helps businesses to understand and convey information seamlessly both internally and externally. To achieve 360-degree real-time visibility, extended communication and collaboration network between departments, third-party providers and manufacturers can help firms improve process transparency, make quick decisions, and increase customer satisfaction. Collaboration is the key to strengthen supply chain visibility. 4. Contribute towards a sustainable world Businesses have acknowledged the value of environmentally friendly ecosystems. This means designing biodegradable products and packaging, sourcing resources responsibly from social and humanitarian groups, ensuring minimal waste and environmental impact, reducing mileage, emissions, and carbon footprint through logistics along with operating assets and equipment in an environmentally and worker-friendly manner. Sustainability necessitates cross-partner collaboration and strong visibility. To keep up with the changes, firms need a sustainable partner that can collaborate in building this ecosystem across the supply chain. 5. Introduce automation to the supply chain The food supply chain generates a lot of data that can be used to improve operations and the customer experience. AI is designed to handle complicated processes quickly, such as inventory and route. With AI projecting future demand, food brands can better match demand with capacity, lowering the cost of shortages and overages. Machine Learning can improve demand planning by increasing forecast accuracy. This will help Food brands optimize inventories and minimize safety stock, increasing cash flow.
As a continuation of our earlier article, we are sharing the last five resolutions guide food brands in stringing together strategy to create the supply chain of the future. 6. Evaluate your strengths and weaknesses The supply chain is only as strong as its weakest link. Identifying areas for improvement can be challenging, without access to precise real-time and historical data. By implementing automated, supply chain solutions, businesses can achieve granular visibility. That would mean segmenting the supply chain to extract and analyze accurate data from various segments within the supply chain like warehousing or transportation to identify its pain points that need addressing. Evaluation as a process helps to strengthen the end-to-end fulfillment strategy while saving businesses time and money. 7. Simplify the supply chain design A convoluted supply chain can mean that there are more potential for things to go wrong. Food brands with diverse suppliers and processes runs the danger of losing focus causing delays in sourcing, manufacturing, and transportation. Supply chain complexity is one of the major issues firms confront, according to Michigan State University research. Operating in various consumer markets involves numerous suppliers, which means more workflows, regulatory requirements, and vulnerable links. Supply chains can easily become entangled and convoluted, undermining efficiency. Businesses should analyze the entire supply chain to see where it may be simplified. Simplifying procedures can lead to cost savings, increased efficiency, and higher product quality. A lean supply chain is better prepared to deal with unexpected challenges. Its processes frequently improve overall performance, quality, reduces expenses, and increases responsiveness. A high-level audit of operations will reveal areas for improvement, resulting in shorter lead times and lower prices. Technology can help firms manage supply chain issues and streamline operations. Combining these factors can lead to happier consumers, which is the goal of every food brand. 8. Increase Transparency to save costs Transparency extends beyond supply chain visibility, as confirmed by a Harvard Business Review report that reveals cost reductions of up to 20%. To better understand supply chain participants and threats, organizations can now use internal and external data sources. Mobile technology can track compliance or employment data instead of on-site or third-party audits. Additionally, they can track supplies from their point of origin to the producer, and then the finished products from the manufacturer to the end consumer, assisting in the confirmation of quality and preventing fraud. While transparency can educate and engage clients it can also be used to reveal potential operational changes, promote good corporate responsibility, strengthen brands, and mitigate future events. 9. Transform digitally Supplier technology helps food brands build a future-ready supply chain while boosting accuracy, compliance, and visibility. Analytics can help organizations identify market patterns and forecast future demand. Business risks can also be addressed to ensure business continuity and provide end-to-end visibility. According to Forbes, 50% of organizations feel technology has a significant impact on supply chain, logistics, and transportation operations. Digital supply chains rely on ubiquitous data access. They can boost dependability, agility, and efficiency by facilitating cross-platform cooperation and communication. Traditional supply chains must adapt to new digital realities or risk being left behind. A digital operational model incorporates digital capabilities across governance, processes, data management, and IT that enables process integration and standardization. 10. Consider working with a specialist Before assembling a team to fill in the gaps, it is critical to understand the supply chain constraints. Consultants help negotiate the existing supply chain network’s uncertainty. They can help with supply chain technology, 3PL and 4PL outsourcing, warehouse and transportation management, network analysis, Lean distribution, and more. Food brands should consider collaborating with a supply chain specialist who can build a fit-to-purpose business strategy to reduce total value chain costs while improving the performance of the supply chain and manufacturing and distribution costs. According to a report by the UK-based market research firm Technavio, the 3PL market in India is poised to grow by US$10.74 billion in the period 2021-2025, progressing at a compound annual growth rate (CAGR) of almost 8%. Because supply chains are so complicated and unique to each business, consultants can assist uncover gaps between business strategy and supply chain design. A consultant can help traverse the stages and provide guidance to ensure the successful implementation of a supply chain relationship. As we transition into the new year we can together look forward to the challenges and changes the new year brings by embracing these 10 resolutions offered to help supply chains prepare for a productive and efficient year.