PACKAGING T
ransport networks, labour efficiency, automation and inventory management usually take priority. Packaging is often treated as a fixed cost, something that protects products and carries branding. But poor packaging
design can quietly create inefficiencies across the entire supply chain. From wasted trailer space and unstable
pallet loads to damaged products and slower fulfilment, packaging decisions directly influence logistics performance. In many operations, the impact is far greater than businesses realise. As supply chains become more complex and margins remain under pressure, packaging is becoming a strategic operational consideration rather than simply a procurement exercise.
LOOKING BEYOND UNIT COST One of the biggest mistakes businesses make is evaluating packaging purely on unit price. While material cost matters, it only represents a small part of the overall operational picture. A lower-cost pack that reduces pallet efficiency, increases handling time or causes more transit damage can quickly become the more expensive option once logistics costs are factored in. For manufacturers and distributors moving thousands of units every day, relatively small inefficiencies multiply quickly across warehousing, transport and fulfilment operations. Excess empty space inside packs reduces trailer utilisation and poorly designed pallet configurations create unstable loads. Inconsistent case dimensions can slow automated handling systems and create bottlenecks within distribution centres. Individually, these issues may seem minor.
Collectively, they can have a significant impact on operational performance and total cost-to- serve.
PACKAGING AND TRANSPORT EFFICIENCY Transport remains one of the largest operational costs for many businesses, particularly as fuel prices, labour pressures and sustainability targets continue to evolve. This has increased focus on packaging optimisation as a way of improving logistics efficiency. Even modest improvements to pack dimensions can significantly increase pallet density and trailer fill. More products per pallet means fewer vehicle movements, lower transport costs and reduced emissions per shipment. The challenge is achieving this without compromising product protection as over-optimised packaging that sacrifices structural performance often leads to higher damage rates, additional handling and costly returns. The most effective packaging solutions balance material optimisation with real-world supply chain demands. This is where packaging design needs to become more data-led and operationally informed.
DESIGNING FOR MODERN LOGISTICS OPERATIONS Warehousing and fulfilment environments are changing rapidly. Automation is becoming increasingly common; SKU counts are rising and customer expectations around availability and delivery speed continue to grow. Packaging
THE HIDDEN LOGISTICS COST SITTING INSIDE POOR PACKAGING DESIGN
By Adam Platts, Sales and Marketing Director, VPK Packaging UK & Ireland
When businesses look to reduce operational costs, packaging is rarely the first area they examine
needs to support these operational realities. Consistent pack sizing and reliable structural
performance are increasingly important for automated handling systems, conveyor operations and palletising equipment. Packaging that performs inconsistently creates friction within highly optimised logistics environments. At the same time, retailers and distributors are placing greater pressure on manufacturers to improve supply chain efficiency. Shelf-ready packaging, easier handling and reduced waste are all becoming more important operational requirements. This means packaging design can no longer happen in isolation. The most successful businesses are taking a
more collaborative approach, bringing together packaging teams, operations, logistics and manufacturing functions to ensure packaging supports the wider supply chain rather than creating additional complexity.
REDUCING COMPLEXITY ACROSS THE SUPPLY CHAIN Operational complexity is expensive. As product ranges expand and businesses respond to changing customer demands, packaging portfolios often become increasingly fragmented. Different formats, specifications and configurations can create unnecessary inefficiencies across production, warehousing and transport. Standardisation can play a major role in
reducing this complexity. Aligning pack formats where possible helps simplify storage, handling and pallet configurations while improving forecasting and operational consistency. It also creates greater flexibility within manufacturing
14 MAY 2026 | FACTORY&HANDLINGSOLUTIONS
and distribution environments. Importantly, standardisation does not mean sacrificing branding or shelf presence. Strong packaging design can still deliver visual impact and shopper navigation while supporting operational efficiency behind the scenes.
CONTINUOUS OPTIMISATION MATTERS Supply chains are not static as transport networks evolve, automation capabilities improve and operational pressures change over time, packaging should evolve alongside them. By understanding how packaging performs across manufacturing, storage, transport and fulfilment, businesses can identify opportunities to improve efficiency throughout the supply chain. This process is increasingly important as
companies look for practical ways to improve resilience, reduce operational costs and support sustainability targets simultaneously. The businesses gaining the greatest advantage are often not the ones making dramatic operational changes. They are the ones identifying overlooked inefficiencies and refining them over time. Packaging is becoming one of those opportunities. For many manufacturers and logistics operators, smarter packaging design is no longer simply about protecting products. It is about creating more efficient, more resilient and more cost-effective supply chains from end to end.
VPK Packaging
www.vpkgroup.com
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