When I first explored reusable packaging at the 1996 North American Material Handling Show in Detroit, it seemed like automotive and reusable packaging were the perfect power couple. It was the “milk run” days of automotive when parts manufacturers were in close proximity of OEM assembly plants for JIT (just-in-time) delivery. The best NA96 presentations and product displays were from the automotive sector.
However, as Megan Kelly reports in Automotive Logistics, the legacy automotive packaging system has struggled to keep pace with advancements in automation and logistics. With the increasing adoption of automated mobile robots (AMRs), robotic picking systems, and AI-driven logistics, packaging has increasingly become a bottleneck, forcing OEMs and suppliers to rethink their approach. The question is no longer whether automotive packaging will change but how quickly companies can pivot to stay ahead.
Automation’s Packaging Problem
Automation in logistics is only as effective as the weakest link in the chain, and outdated packaging designs are proving to be a major stumbling block. As Kelly notes, traditional packaging solutions—ranging from oversized bins to individually wrapped parts—were designed for human handling. Robots, however, struggle with unwrapping and identifying components without uniform, automation-friendly packaging. Without change, this misalignment results in costly inefficiencies, increased repacking needs, and slower production flows.
The lack of standardization further compounds the issue. Without consistent packaging dimensions and formats across plants and suppliers, automation systems require costly adjustments. The need for cross-functional collaboration between packaging, logistics, purchasing, and automation teams is clearer than ever. “Getting ahead of the curve by working with suppliers to redesign packaging so that it is robot-friendly can be a significant competitive advantage,” Kelly writes.
Custom Bins vs. Modular Reusable Packaging
While custom bins designed for robotic picking might seem like a solution, they have limitations. Custom bins often become obsolete with every model change, resulting in massive waste and increased costs. Moreover, bin sizes must be balanced to accommodate AMRs that need adequate space to maneuver within production plants. This tradeoff underscores the need for flexible, modular, and reusable designs that can adapt across vehicle generations and supply chains. Where possible, reusable packaging providers have long worked to modify internal dunnage to enable the continued use of legacy containers for new model parts, but increased flexibility is becoming a requisite.
Investing in higher-precision packaging for automation does increase upfront costs, but as Kelly emphasizes, the long-term savings in efficiency, reduced waste, and logistics optimization make it worthwhile. Standardized, automation-compatible packaging also allows for better warehouse management and inventory tracking, streamlining operations from supplier to assembly line
The Digital Revolution in Automotive Packaging
Kelly also underscores the potential of digital tools to enhance packaging efficiency. BMW’s Dingolfing plant, for example, has implemented AI-powered container tracking to automate the counting of empty containers—a task previously performed manually. This innovation reduces labor, minimizes errors, and optimizes bin usage.
Other digital strategies, such as warehouse management systems (WMS) and inventory tracking, can ensure packaging consistency, predict shortages, and optimize material flows. Data-driven decision-making allows manufacturers to fine-tune packaging designs for sustainability and automation.
Sustainability Gains Through Smarter Packaging
One of the most compelling arguments for packaging innovation is its sustainability impact. Smarter packaging design can increase packing density, reducing the number of truckloads required and cutting down CO2 emissions. For example, Volvo Cars found that adding just 10% more parts per box could lead to a corresponding 10% reduction in trucks and emissions.
Material choices also play a critical role. OEMs are exploring alternatives to single-use plastics, such as reusable metal trays and P2Packaging’s corrugated box designs, which significantly cut carbon footprints. BMW’s PAL973 single-use paper box maximizes container space utilization and stability, further pushing the envelope on sustainable solutions.
Key Takeaways for OEMs and Suppliers
Kelly’s article underscores an ongoing paradigm shift in automotive packaging—one that views packaging as a strategic enabler rather than a cost center. To thrive in this new reality, OEMs and suppliers must:
- Standardize Packaging Across the Supply Chain – Consistency is key for automation compatibility and efficiency gains.
- Invest in Modular, Reusable Solutions – Reducing reliance on single-use or custom bins minimizes waste and cost.
- Leverage Digital Tools – AI, WMS, and automated tracking can optimize logistics and prevent bottlenecks.
- Prioritize Sustainability – Sustainable packaging reduces emissions, cuts material waste, and can lead to long-term savings.
- Break Down Silos – Collaboration across departments and suppliers is critical for creating a packaging strategy that aligns with automation goals.
One of the greatest challenges in modern supply chains is simply keeping up. With so many moving parts—suppliers upgrading equipment, new transportation efficiencies being introduced, and shifting sustainability goals—it’s a constant struggle for all components to stay in sync. A solution that worked last year may no longer be optimal today, as new technologies, regulations, and cost structures emerge. This means constant adaptation, ensuring containers, pallets, and dunnage remain compatible with evolving supply chain needs. If one link in the chain lags, inefficiencies ripple outward, emphasizing the importance of agility and forward planning.
The automotive industry—and increasingly others—are reaching an inflection point where packaging is no longer just a passive vessel for parts; it is a vital component of supply chains that are evolving in real-time. Those who embrace packaging as a strategic enabler will gain a significant competitive edge, while those who resist will lose ground in an increasingly automated world.
Dig deeper into reusable transport packaging at our related hub.
Related Articles
YOYOBin Adjustable Helps Automotive Achieve Lightweighting Goals
Automotive Plastic Packaging: Driving Better Reuse & Diversion
Nefab Opens PolyFlex Facility in Michigan Supporting Automotive
Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
