Advantages of 3PLs for a Packaging Operation

Linda James, Logistics Tech Outlook | Tuesday, January 11, 2022

Switching to a 3PL for packaging operations allows businesses to emphasis on the fundamental manufacturing and production trade.

FREMONT, CA: Customer satisfaction is a top priority for any company, and nothing keeps a client happier than rapidly and effectively having their favorite products. Giving goods into your customers' hands efficiently and cost-effectively is the essence of any company. As a company grows, it becomes hard and expensive to manage that supply chain; logistics errors can harm the customer experience, hamper the development of your company, and eat into your earnings. Companies often outsource their satisfaction and logistics to a third-party logistics business, also known as a 3PL or third-party logistics provider, to relieve many of these problems.

Packaging at the end of the manufacturing phase is no longer as simple as merely putting a product in a branded package. It is motivated by altering customer requirements and expectations, as well as initiatives for supply chain effectiveness. Packaging has become an all-supply chain strategic element. Also, the increase in e-commerce is driving supply chain disturbance. As a consequence, each element of the supply chain is transformed and reinvented, especially the packaging operation.

The four primary benefits that 3PLs can bring to packaging operations are as follows:

• Interconnected Facilities for Packaging: While supply chains are struggling to meet client requirements and expectations, they should not lose focus on their fundamental objectives: cost reduction and increased efficiencies. One way of achieving this is throughout the packaging process to reduce the number of touchpoints and travel distance. 3PL facilities are intended and configured to incorporate packaging activities in distribution centers. Not only can this decrease transport expenses, but it can also provide more product control, promote more resource-effective use, and minimize product loss possibilities.

• Enabled Customization: 3PLs are set up to efficiently execute and handle a packaging operation enabling products to be altered and tailored in the final phases before customer delivery. Many businesses are under pressure to explore current packaging varieties, unique dimensions, and settings as well as other product customization to promote in-store promotions and on-shelf brand differentiation. Postponing and customization policies enable businesses to create choices and changes more cost-effectively at the very end of the supply chain. This is ideal for generating popular, high-value promotions that will allow retailers to design their products and packs. It is also essential that any last-minute modifications or reconfigurations are incorporated as the item is being stored and ready for shipment.

• Highly Scalable Supply Chain: 3PLs can assist businesses to achieve more control, consistency, and predictability with packaging while providing the flexibility necessary to respond rapidly to changing requirements. 3PLs leverage their labor management and packaging capacities to deal with sharp seasonal rises and variations, to launch or expand current product lines, and to add new markets and geographical places that capitalize on rapidly changing market trends or possibilities.

• Packaging Solutions: Companies are looking to strengthen their supply chains to drive efficiencies and savings as customers are becoming more demanding. Throughout the upstream packaging method, 3PLs can recognize possibilities at the start of the supply chain to drive labor, manufacturing, and cost efficiencies through distribution by leveraging downstream understanding. Organizations are looking to reinforce their supply chains as clients become more demanding to drive efficiencies and savings. 3PLs extend services to include supply planning, acquisition of packaging products to link upstream operations to downstream activities.

In today's situation where disturbance occurs at an accelerated rate across all sectors, there is pressure on supply chain businesses to innovate and remain competitive continuously. Turning packaging activities to a 3PL can provide higher control, efficiency, diversity, and innovation while enabling organizations to concentrate on crucial company elements such as manufacturing and production.

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