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‍How 3PL companies reduce fulfilment costs using cardboard packaging

Efficient, cost-effective order fulfilment drives success for ecommerce and retail companies. Third-party logistics (3PL) companies play a vital role in reducing fulfilment costs, offering outsourced services to businesses seeking to streamline their logistics operations. 

A significant factor in achieving cost reduction and efficiency in 3PL is the implementation of smart packaging solutions. Discover how 3PL companies leverage smart packaging to reduce fulfilment costs and enhance operations, all whilst improving customer satisfaction. 

What is Smart Packaging?

Smart packaging is precision-engineered corrugated cardboard designed to solve real logistical problems. Rather than defaulting to multiple box sizes, a well-designed smart packaging solution can accommodate a wide range of products efficiently within one or more styles, reducing SKU complexity and simplifying warehouse operations. All our packaging is supplied flat-packed to maximise storage efficiency, and smart design incorporates features such as self-assembling bases, push-lock closures and automation compatible designs. This means faster packing speeds, lower shipping costs and seamless integration with modern fulfilment technology.

FEFCO codes – Industry standard cardboard boxes

The European Federation of Corrugated Board Manufacturers (FEFCO) is a non-profit organisation that represents the interests of the corrugated cardboard packaging industry across Europe. They created a standardised library of box styles that serve as a starting point for picking the right box for the right job. Here are some FEFCO cardboard box styles we supply to 3PL companies:

FEFCO 0201

The most common box style, it’s engineered for efficient material use with flaps that meet perfectly in the middle. A reliable, economical and ideal box for most fulfilment operations.

FEFCO 0215

This style includes a push-lock base that eliminates the need for tape, the flaps interlock securely on assembly, speeding up packing and improving presentation.

FEFCO 0422

This style is a tray that requires no glue, and two trays adapt to multiple product sizes when interlocked offering flexibility across multiple SKUs. It can also be used on its own or as a lid when combined with an 0200 style.

FEFCO 0427

This style of cardboard box features a self-locking design, forming a strong, die-cut box when folded and assembled correctly.

How packaging impacts 3PL workflows

Packaging significantly influences 3PL workflows, affecting storage space, pick-and-pack speed and shipping rates.

Storage space

Generic or oversized packaging leads to inefficient space utilisation in warehouses. Smart packaging, with its right-size engineering and flat-pack storage designs, maximises storage capacity, reducing costs associated with warehousing and inventory management.

Pick and pack speed

Standard packaging can slow down the pick and pack process, requiring more time and labour for handling and preparation. Smart packaging solutions, especially those designed for automation, streamline this process, leading to faster packing speeds and reduced labour costs. Automation-ready boxes enable the use of automatic packing machines, which further enhances efficiency.

Shipping rates

Shipping costs are often determined by the package's size and its weight. Oversized or poorly packed items increase dimensional weight charges. Smart packaging, through optimised design can use lighter weight materials, minimise package size and weight resulting in lower shipping costs. This benefits both the 3PL provider and its clients.

Five ways cardboard packaging can reduce fulfilment costs in 3PL operations

3PL packaging solutions can reduce fulfilment costs in several ways. Here are the top five:

Reduced dimensional weight charges

When packaging fits your product precisely, you're not paying shipping costs for empty space inside the box.

Faster packing speeds

Push-lock and crash-lock base boxes assemble instantly without tape, reducing hand-packing time and speeding up the entire fulfilment process. This reduces staffing costs and increases speed and efficiency for 3PL operations.

Lower storage costs

Our extensive warehouse storage space offers the perfect place to keep your packaging stocked off-site, until you need them. This lowers your storage costs without compromising productivity, with just-in-time delivery maintaining your efficiency.

Damage reduction

Smart packaging is designed so the product doesn’t move around in transit, thereby reducing the likelihood of damage. This reduces the costs of replacing damaged items for customers.

Automation-friendly design

Smart packaging is designed with automation in mind. This allows 3PL companies to make use of automatic case packers and other robotic packaging machines to streamline their operations.

How Box Factory supports 3PLs and their clients

At The Box Factory, we offer personalised and tailored design services, leaning on our extensive experience in corrugated packaging and our streamlined supply chain. 

Recognising the uniqueness of each customer, we prioritise finding the right 3PL packaging solutions to achieve optimal outcomes for our clients.

We guarantee rapid response times and provide efficient stock management, including stock holding for our customers and providing next-day delivery.

Want to discuss smart packaging for fulfilment? Need a bespoke 3PL packaging solution? Speak to one of our experts today.

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