{"id":23393,"date":"2021-08-04T08:00:22","date_gmt":"2021-08-04T06:00:22","guid":{"rendered":"https:\/\/knaufappliances.com\/?p=5621"},"modified":"2025-02-20T13:46:30","modified_gmt":"2025-02-20T12:46:30","slug":"reduce-logistics-costs-protective-packaging","status":"publish","type":"post","link":"https:\/\/www.knauf-industries.com\/en\/blog\/reduce-logistics-costs-protective-packaging\/","title":{"rendered":"How to reduce logistics costs through protective packaging"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"23393\" class=\"elementor elementor-23393\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6b292298 e-flex e-con-boxed e-con e-parent\" data-id=\"6b292298\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1b185d8f elementor-widget elementor-widget-text-editor\" data-id=\"1b185d8f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The term logistics costs involve <\/span><b>all expenses related to getting a product from manufacturing to the end client,<\/b><span style=\"font-weight: 400;\"> including packaging, transport, and storage costs. Taking proactive actions such as optimizing protective packaging can reduce logistics costs significantly. We analyze how.\u00a0<\/span><\/p><h2><span style=\"font-weight: 400;\">Why logistic costs are important for your business<\/span><\/h2><p><span style=\"font-weight: 400;\">In today\u2019s complex logistics landscape, companies face a number of challenges<\/span> <span style=\"font-weight: 400;\">that can quickly and unexpectedly escalate logistics costs. However, it\u2019s possible to name <\/span><b>the 3 main factors that have an influence on logistic costs<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\"><b>Storage and inventory<\/b><span style=\"font-weight: 400;\">: products that are stored not only are not sold but are responsible for different expenses, from storage space rental to labor costs, taxes, and maintenance. An incorrect inventory can also generate product shortages, which means the company is losing sales opportunities.\u00a0<\/span><\/li><li style=\"font-weight: 400;\"><b>Packaging<\/b><span style=\"font-weight: 400;\">: the wrong packaging solutions can cause damage to goods and generate costly returns from end clients. Inadequate packaging configurations can also take too much space or weigh too much and generate extra spending on transport and storage.\u00a0<\/span><\/li><li style=\"font-weight: 400;\"><b>Transportation costs<\/b><span style=\"font-weight: 400;\">: rented or owned vehicles, fuel, or maintenance are the usual costs associated with transport.\u00a0<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">With these main logistics costs in mind, companies that are able to reduce logistics costs in any of these areas (even those that manage to make <\/span><b>marginal improvements<\/b><span style=\"font-weight: 400;\">) will have access to an important competitive advantage.<\/span><\/p><h2><span style=\"font-weight: 400;\">Reduce logistic costs: the challenges<\/span><\/h2><p><strong>Inventory and warehouse management<\/strong><\/p><p><b>Discoordination between production and demand<\/b><span style=\"font-weight: 400;\"> is a common issue that prevents companies from reducing logistic costs. Storing too many products is costly, not only because of the aforementioned reasons but also because some products can be damaged if time goes by and they\u2019re not sold. At the same time, a shortage of inventory makes companies lose sales opportunities.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">In order to eliminate these costs, companies may study taking several actions:\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Use <\/span><b>digital forecasting models<\/b><span style=\"font-weight: 400;\"> to anticipate demand. Through Big Data analysis (which goes beyond historical data) digital tools can help companies predict their inventory needs. Through these tools, companies may look at relevant information such as best-selling items and sales trends.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">For instance, companies can reduce logistics costs associated with warehousing (staff, machinery, rental space) if they can predict periods where demand for their products is lower.\u00a0<\/span><\/p><p><b>Optimize their protective packaging<\/b><span style=\"font-weight: 400;\"> to minimize storage space and ensure products are protected as long as possible, even in storage conditions.\u00a0<\/span><\/p><p><strong>Shifting transportation<\/strong><\/p><p><span style=\"font-weight: 400;\">Today\u2019s complex global economy requires products to travel across the world, often using different modes of transportation. In terms of challenges for logistics, this means that packaging units will need to be optimized to <\/span><b>shift between different types of transportation <\/b><span style=\"font-weight: 400;\">while, at the same time, guaranteeing the safety of goods.\u00a0\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">These shifting transportation issues might be aggravated if inventory and warehouse are not well managed, as explained above: if a product is not available when a customer orders it, companies might need to opt for <\/span><b>inefficient transportation options<\/b><span style=\"font-weight: 400;\"> that shift continuously (from road transportation to air or sea transportation).\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">This quickly <\/span><b>escalates logistics costs<\/b><span style=\"font-weight: 400;\"> and, without the adequate packaging system, can also pose a serious risk for the product\u2019s integrity and safety, which would increase costs even more.<\/span><\/p><h2><span style=\"font-weight: 400;\">Total pack system: reduce logistic costs with Knauf Appliances<\/span><\/h2><p><span style=\"font-weight: 400;\">The<\/span><span style=\"font-weight: 400;\"> right packaging design<\/span><span style=\"font-weight: 400;\">, that considers protective foam packaging, protective packaging materials, and other solutions, helps companies to reduce logistic costs and plays a crucial role in <\/span><b>avoiding damage, return costs, and distribution control.<\/b><\/p><p><span style=\"font-weight: 400;\">The analysis and design of the right packaging encourage cost reduction through the following actions:\u00a0<\/span><\/p><ul><li style=\"font-weight: 400;\"><b>Packaging costs <\/b><span style=\"font-weight: 400;\">are lowered, as the most efficient protective packaging materials are chosen.\u00a0<\/span><\/li><li style=\"font-weight: 400;\"><b>Transport and warehouse space<\/b><span style=\"font-weight: 400;\"> are optimized through the study of packaging systems that fill transportation options and leave no empty space, but also minimize their size.\u00a0<\/span><\/li><li style=\"font-weight: 400;\"><b>Transportation mode shifting<\/b><span style=\"font-weight: 400;\"> can be sped up through the use of adequate packaging systems, especially tertiary solutions. Packaging systems can be designed to be easy to move manually or using a forklift. They can also be customized for the specific routes and transportation modes that the company\u2019s products will have to go through.\u00a0<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Adequate packaging solutions <\/span><b>guarantee product safety<\/b><span style=\"font-weight: 400;\">, making sure the packaging+product system will endure handling and transportation risks without damage. This, in turn, helps companies <\/span><b>reduce return costs<\/b><span style=\"font-weight: 400;\"> that arise when customers refuse to take a product that has been damaged during the distribution cycle.\u00a0<\/span><\/li><li style=\"font-weight: 400;\">Sustainability<b style=\"font-weight: 400;\"> analysis <\/b><span style=\"font-weight: 400;\">of packaging solutions also allows companies to reduce logistics costs, as using energy-efficient solutions optimizes energy consumption and even costs related to transportation fuel.\u00a0<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">In order to help companies have access to the advantages of <\/span><b>optimizing their packaging<\/b><span style=\"font-weight: 400;\">, at<\/span><a href=\"https:\/\/knaufappliances.com\/\"><span style=\"font-weight: 400;\"> Knauf Appliances<\/span><\/a><span style=\"font-weight: 400;\"> we have developed our <\/span><b>Total Pack System<\/b><span style=\"font-weight: 400;\">. This is a circular collaborative analysis system that allows us to understand each project&#8217;s needs and find the right packaging system.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Through 4 stages (analysis, diagnosis, test and launch) and using ou<\/span><span style=\"font-weight: 400;\">r ID-lab\u2019s expertise<\/span><span style=\"font-weight: 400;\">, we\u2019re able to provide customized solutions for our clients, making sure they <\/span><b>meet their cost-reduction goals <\/b><span style=\"font-weight: 400;\">while, at the same time, generating optimized, cost-efficient packaging systems.<\/span><\/p><p><a href=\"https:\/\/www.knauf-industries.com\/en\/contact-us\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Get in touch with us <\/span><\/a><span style=\"font-weight: 400;\">and learn more about how to reduce logistics costs through protective packaging.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The term logistics costs involve all expenses related to getting a product from manufacturing to the end client, including packaging, transport, and storage costs. Taking proactive actions such as optimizing protective packaging can reduce logistics costs significantly. We analyze how.\u00a0 Why logistic costs are important for your business In today\u2019s complex logistics landscape, companies face &#8230; <a title=\"How to reduce logistics costs through protective packaging\" class=\"read-more\" href=\"https:\/\/www.knauf-industries.com\/en\/blog\/reduce-logistics-costs-protective-packaging\/\" aria-label=\"Read more about How to reduce logistics costs through protective packaging\">Read more<\/a><\/p>\n","protected":false},"author":11,"featured_media":24422,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[355],"tags":[],"class_list":["post-23393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics-distribution"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to reduce logistics costs through protective packaging - Knauf Industries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.knauf-industries.com\/en\/blog\/reduce-logistics-costs-protective-packaging\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to reduce logistics costs through protective packaging - Knauf Industries\" \/>\n<meta property=\"og:description\" content=\"The term logistics costs involve all expenses related to getting a product from manufacturing to the end client, including packaging, transport, and storage costs. Taking proactive actions such as optimizing protective packaging can reduce logistics costs significantly. We analyze how.\u00a0 Why logistic costs are important for your business In today\u2019s complex logistics landscape, companies face ... 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