PACKAGING – REDUCING UNNECESSARY PACKAGING

Our client sourced their products from manufacturers in Asia. The manufacturers shipped these products in ocean container quantities, and they arrived at our warehouse floor loaded (i.e., not on pallets, but stacked floor to ceiling in the container) to maximize the product density in the containers. The manufacturer packed the product into master cartons, and each master carton contained multiple inner cartons. Because the product was not handled from the time it was loaded in the container by the manufacturer until it was unloaded at our warehouse, the product was generally received in very good condition.

Since the inner carton was the unit of sale, we advised our client to direct the manufacturer to discontinue packing the inner cartons into master cartons, and simply load the inner cartons into the ocean containers. This reduced our client’s product cost (by the cost of these master cartons and the labor to pack the inner cartons into the master cartons), reduced the weight transported in the containers (thus reducing the inbound freight cost in most cases), and enabled more product to be packed into each container.

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