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RPN
RPN
Automotive Packaging: Role Continues to Evolve in Global Supply Chains
Photo credit: CHEP
As automotive assembly has become global in nature, the impact of transportation costs on return of empty reusable packaging has influenced automotive packaging selection. And while an increased reliance on expendable packaging has saved on empty packaging transportation, it has been linked to increased waste generation, product damage, increased product repacking labor, as well as a loss of cube efficiency in freight and storage.
The packaging challenges faced by the automotive industry have been well documented, as for example, by DHL:
…the automotive industry faces a number of packaging-related issues. One is that poorly packaged products do not fully utilize the capacity of sea containers, increasing the likelihood of in-transit damage. But such issues aren‘t limited to ocean voyages. Other problems include the inconsistent availability of containers and associated materials used in manufacturing, warehousing, and distribution; a lack of asset visibility; product contamination from dirty receptacles; and inefficient returns management for reusable packaging.
And as noted by Deloitte, “Industry surveys have consistently shown that suppliers and OEM’s (original equipment manufacturers) frequently face difficulty in getting the right packaging to the right place at the right time.”
Automotive industry and packaging suppliers are working at new optimization best practices in response to these changes. And related to visibility there is the additional opportunity for IoT in automotive to consider, and what role packaging will play in its deployment.