The COVID-19 pandemic has provided a major boost to e-commerce, with the U.S. Census Bureau reporting a 45% year-over-year increase from the second quarter of 2019 to the second quarter of 2020. For brands experiencing a significant increase in e-commerce sales or embracing e-commerce for the first time, designing packaging to hold up under the conditions a single parcel may face in shipping can be a challenge. Products that are damaged during shipping are costly to your brand’s reputation and can ruin your relationship with customers.
Packaging SKU rationalization can drive cost savings opportunities in a few different ways. It may allow a brand to consolidate its packaging material suppliers and purchase fewer structures and sizes. It may provide an opportunity to reduce the amount of packaging material inventory it needs to keep on hand. Reducing the number of packaging SKUs helps a brand to better utilize its warehouse space. It also enables a brand to optimize asset utilization across manufacturing and packaging facilities.