Here’s one more reminder that pallet providers should be talking to their customers regularly. In a recent Talking Logistics column, Logistics Benefits via Improved Packaging, industry analyst Adrian Gonzalez highlights how packaging changes have positively impacted transportation and warehousing operations. A July 2024 survey conducted by Indago, a research community of supply chain and logistics executives, revealed that 63% of respondents had made packaging changes in the past three years that improved efficiency in their operations.
The Impact of Packaging on Logistics Efficiency
The Indago survey results show that companies are making packaging changes to optimize warehouse and transportation operations. One recurring theme is increasing product density. A logistics executive noted, “We made changes to our product that would allow us to change the packaging to [use] a smaller box. It went from a single box on a pallet to now being able to put six boxes on a pallet.” By better utilizing the space in packaging, companies can fit more products onto pallets and trailers, reducing shipping costs and improving supply chain efficiency.
“You can easily cut pennies in packaging costs but incur increased dollars in damage, handling, safety, and quality.”
Another key improvement is reducing pallet overhang—a critical factor for warehouse automation and load stability. One respondent shared, “We made packaging changes to support automation in our warehouses and to improve overhang of product on pallets.” Packaging that extends beyond the edges of a pallet can create inefficiencies in automated storage and retrieval systems, increase damage risk, and complicate material handling. Ensuring that packaging aligns with pallet dimensions helps streamline handling and protect products.
At the same time, companies must balance product protection with packaging efficiency. Some industries, such as medical device manufacturing, require packaging that preserves sterility and integrity.
These examples highlight the importance of collaboration between logistics teams, product designers, and packaging engineers. As one respondent pointed out, “Our logistics team collaborates very closely with product and package design to ensure product packaging is economical, sustainable, and works well within our warehouse automation and other processes.” When these teams work together, packaging innovations can drive significant operational improvements without compromising product quality.
Finally, there is a cautionary note: cutting packaging costs without considering the full supply chain impact can backfire. One executive warned, “You can easily cut pennies in packaging costs but incur increased dollars in damage, handling, safety, and quality.” A small cost-saving decision at the packaging level may lead to greater expenses in returns, labor, and compliance issues. Companies must evaluate the broader trade-offs before making drastic reductions.
What This Means for Pallet Suppliers
Nearly two-thirds of companies surveyed have adjusted their packaging to improve transportation and warehousing. Changes to any component of the unit load can have ripple effects on the efficacy of other components, including pallets. This creates a strong case for pallet vendors to stay engaged with their customers.
Pallet needs are not static. Packaging is evolving to address performance, efficiency, sustainability, and regulatory requirements, and pallets must evolve in tandem. Regular communication about packaging and operational changes ensures that customers continue to use the best pallet for the job—balancing cost, durability, and performance.
Whether a packaging change requires a revision of deckboard placement, greater stiffness or strength, or other adaptations to support automation, it is important to stay up to date. Knowledge allows pallet vendors to help customers avoid costly problems and potentially unlock savings opportunities.
By maintaining these discussions, pallet suppliers position themselves not just as product providers but as strategic partners in optimizing the supply chain.
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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.
