Packaging for Logistics 4.0: more profitability and better shopping experience for your customers

Digitalisation is an unstoppable phenomenon at all levels. In the field of goods production, it is manifested in the progressive implementation of Industry 4.0. And, as a direct consequence, it extends to storage and distribution, promoting the development of 4.0 logistics.

In this third decade of the century, maintaining business competitiveness will require a commitment to new technologies at every step of the supply chain. The aim is to do away with silos and achieve absolute transparency in information management, so as to minimise errors and gain in efficiency.

Packaging plays a leading role in the workflows imposed by logistics 4.0. At RAJA® we have dozens of references designed to streamline your packaging and order picking protocols. Stay with us and get ready for a future of automation and flexibility… which is already present!

what is Logistics 4.0?

Logistics 4.0 is a concept of supply chain management that aims to achieve total integration of processes by interconnecting all the actors involved, based on the advantages of the computerisation of tasks, but also on innovations such as cloud computing, the Internet of Things and Business Intelligence.

In the logistics 4.0 ecosystem, ideas such as the following become important:

• Automation, understood as a combination between mechanisation and instant decision making based on the constant monitoring of goods and work flows, as well as predictive analytics that provide patterns about demand behaviour.
• Omni-channeling, which seeks coordination between all sales channels in order to provide the user with a 100% satisfactory experience, regardless of the shopping itinerary they choose to follow to purchase, collect or return products.
• Traceability control throughout the production chain. With the shipment of increasingly sensitive and delicate items, especially food and products intended for human consumption, it is necessary to certify that there are no incidents that could deteriorate them during transport.

In this paradigm, the right choice of packaging for Logistics 4.0 is good for both the customer’s shopping experience and the company’s bottom line.

Logistics 4.0 packaging and the shopping experience

Logistics 4.0 offers companies the tools they need to satisfy a digitally mature consumer who places a premium on convenience, quality and immediacy when shopping.

1. Packaging for an omni-channel customer experience

Paradoxically, physical shops are becoming increasingly important with the development of e-commerce. Why?

1. Because of the service they provide as collection centres for orders placed online in BOPIS (Buy Online, Pickup In Store) or click & collect schemes; or for managing returns in BORIS (Buy Online, Return In Store) schemes.
2. For their potential to function as small warehouses and distribution centres for the brand in Ship from Store strategies.

In these omnichannel shopping experiences, it is advisable to choose packaging such as:

• Lightweightcardboard boxes with formats adapted to the dimensions of the products.
• Bags with handles to make it possible for the users themselves to carry them.
• Food packaging to cope with the demand for take-away food resulting from the COVID-19 pandemic.

Likewise, in view of the Ship from Store, it is essential to provide establishments with basic warehouse equipment to facilitate stock management by employees.

2. Traceability and order tracking

When a user confirms their purchase in an online shop, they enter a period of waiting and doubts that ends when they pick up their package. Logistics 4.0 aims to shorten this period as much as possible and, at the same time, reduce uncertainty with methods that inform the customer of the status of their order in real time and that assure them that their products will arrive at their destination in good condition.

From the packaging point of view, it is possible to choose solutions that help to control the traceability of shipments, such as:

• Type labels smart packagingat RAJA we have indicators for tip-over, impact, rising temperature and falling temperature.
• Opaque security bags, which incorporate an individual tracking identification number and an adhesive closure that alerts you to any improper attempt to open them.

3. Solutions for last mile logistics 4.0

Urban or last mile logistics is one of the main challenges in e-commerce. Logistics 4.0 offers digital solutions for its management, such as apps that keep the user up to date on the location of their package; or Transportation Management Systems (TMS), which adapt transport routes according to traffic and weather conditions.

In the end, the aim is to bring the product and the buyer together in the same space at the lowest possible cost for the shipper and the greatest possible convenience for the receiver. To achieve this, and especially in the wake of the COVID-19 crisis, the use of postal packaging has increased, with flat envelopes and cases that fit through the letterbox and facilitate contactless delivery without the need for the recipient to be present.

4. Packaging that simplifies reverse logistics

Free and flexible returns are decisive factors in deciding whether or not to buy online. This is where reverse logistics emerges as a hidden cost for companies. But it is feasible to minimise it through logistics 4.0, with initiatives such as the promotion of BORIS or the optimisation of delivery drivers’ journeys so that, at the same time as they collect a rejected order, they deliver a new one. This last idea is very appropriate when the customer demands a change of size.

At RAJA® you will find reusable packaging, such as return cartons and return envelopes, which make it easier for the receiver to pack the unwanted product so that it returns to the warehouse in perfect condition.

Packaging for Logistics 4.0 and cost-effectiveness

Logistics 4.0 is taking hold in a commercial environment which, in many companies, is subject to an ephemeral cycle for each reference and to an ever-increasing product turnover. In addition, in e-commerce, there is the added complexity of handling a large number of orders of small volume and heterogeneous composition, which forces each operator to dedicate a very high amount of time to the preparation of each package. It is therefore urgent to take optimisation measures so as not to compromise the profitability of operations, with proposals that include the revision of packaging dynamics.

1. Versatile and quick-assembly packaging

RAJA® suggests several packaging solutions for logistics 4.0 to speed up order picking processes:

• Height-adjustable boxes. Starting from a single format, they allow you to adjust the packaging to items of different dimensions. This way, no time is wasted in selecting the right size box.
• Instant fit cardboard boxes can be stored flat and ready to use in seconds by applying light pressure to the sides. Models with built-in hook-and-loop fasteners are available to speed up the process even further.
• Boxes with integrated foam padding and padded envelopes– an ideal two-in-one for fragile products.
• Envelopes and gift boxes that allow for a neat presentation in record time when the user asks for their shipment to be treated as a gift.

2. Machines to automate the filling and closing of parcels

The mechanisation of packaging in logistics 4.0 is another way to increase profitability while preventing accidents and occupational illnesses among operators. With packaging machines and systems, the rate of packages dispatched per hour is increased. Specifically, these solutions are used to automate both the filling of boxes and their closing and sealing:

• Within the filling machines, we have systems that block empty spaces with air and foam. For a more EcoResponsible perspective, stay with the filling systems with paper, a very effective material when it comes to protecting the items and, of course, recyclable.
• As for closing machines, we recommend you take a look at wrappers, sealers and strapping machines. Have you already read our post on how to choose the best strapping machine for your business?

Planning packaging for logistics 4.0 is an exciting challenge that your company does not have to undertake alone. At RAJA® we are here to accompany you in this adventure, helping you to optimise the volumetric weight of your shipments or to choose EcoResponsible packaging options with delivery in just 24/48h. Contact us and tell us what’s on your mind!