Nowadays, pollution is a very big topic – an elephant in the room that can no longer be ignored. With the U.S. generating as much as 42 metric tons of plastic-originating waste every year, the subject of packaging has become rather sensible.
More and more companies are switching to cartoner machines, as the material is more eco-friendly compared to plastic. However, inventory aging can also lead to waste – something that compromises both the environment and the business. To prevent the company assets from suffering, the control of packaging inventory aging is a must.
There are several reasons why the packaging inventory might age. Below are some common causes for why your packaging might end up getting stored as excess inventory.
When it comes to e-commerce, products tend to sell out quite fast. Demand for a certain product can lead companies to stock up excessively much in retail-ready packaging.
Fearing a stock-out, they order too much, too soon. Once the product sales do not go as smoothly as it was believed, the remaining packaging material ends up aging in the inventory.
This happens quite a lot. Once a product is recalled from the market, the previous kind of packaging that was used for it will no longer be usable. In most circumstances, unless it can be repurposed for a similar product, the packaging will go to waste.
We also see this all the time: product demand soaring and dropping at all times. When the demand is too high, it can lead to stock-outs. But when the demand is too low, it may lead to packaging waste. The cartoning material will simply stay on the shelves, without being put to good use.
Many companies digitally print the label information on the package using robotic packaging automation. In cases like these, if the label information ever changes, the previously printed boxes will be rendered useless.
They may not even be used for other products, as the label has already been printed on the packaging.
Likewise, if the packaging design has changed, the previously-printed and cut packages will also be rendered useless – leading them to age in your inventory.
This often happens when a company decides to change the design into something more appealing to the masses. Since the result is more or less rebranding, the previously created packages will no longer be used.
Packaging inventory can begin to age if you are not careful enough with your supply plan. Here are some tips you may use to prevent packaging inventory aging.
A good way to minimize packaging inventory aging is to optimize the supply of the packaging material. One good option is to set up digital auto-replenishment, as it prevents inventory aging as a result of human error.
An automatic cartoning machine, for instance, can be equipped with this kind of auto-replenishment feature.
You might also determine other ways to optimize your packaging requirements. For instance, you may have a courier bag ready at all times for your daily requirements. An inventory of the daily consumption would be made, and once a certain level is reached, the vendor will be announced to send the next batch of materials.
This is often a good option, as you will no longer have to store any of the excess material. You are only delivered just as much as you need.
It will also give you much more visibility on the aging rate, ensuring that you do not have too much raw packaging left hanging in your warehouse.
Since a lot of the waste goes back into the environment, we can expect the same thing to eventually happen to packaging.
For this reason, you may want to consider setting up a recyclable packaging product. In this case, if the package inventory does end up aging, you may at least be able to recycle the material for further use. Carton packaging may be useful in this regard.
Using recyclable and eco-friendly materials will also label you as a trustworthy brand. More and more companies create programs where they can gather the waste and recycle the packaging. Not only is this a win for preventing waste in the warehouse, but it also prevents waste throughout the rest of the world.
Sometimes, reducing packaging waste simply boils down to using the correct type of packaging.
For instance, wrap-around packaging may lead to less inventory aging. This is because the packaging can still be used on other products even if a product changes or disappears from the market.
This also applies to products that have declined in demand. In these cases, you may use the wrap-around case packer to focus on other goods that are increasing in demand. This way, you will not be allowing the packaging material to age and go to waste.
If your company’s packaging material goes to waste, then you will have a lot to suffer in terms of financial losses. To prevent this from happening, you should try controlling your packaging inventory aging. Automation is often the answer but going for recyclable packaging and a careful eye for detail will also help.