The issue of packaging has become increasingly central, especially in the midst of the increasing digitization and rise of e-commerce. As the logistics industry leader, DHL recognizes the importance of packaging in guaranteeing product integrity and ensuring optimal handling during storage, transportation, and delivery. It has taken years of innovation and improvement to develop new packaging technologies and applications. Today, the packaging market is valued at over 750 billion euros, with the rapid growth of e-commerce further driving its expansion. However, this growth also poses challenges.
A recent DHL study called “Rethinking Packaging” reveals that 9 out of 10 companies believe that packaging will play an increasingly important role in the future. However, these companies have different expectations and objectives when it comes to packaging, often ignoring the impact on the supply chain ecosystem. With the speed, scale, and complexity of modern logistics processes, packaging costs have increased, and inefficiencies in the downstream supply chain have arisen due to the growth of e-commerce and omni-channel retail. Brands want to use their own packaging to enhance the customer experience, but packaging that is difficult to recycle or use can lead to consumer frustration. Today, customers pay more attention to packaging, and sustainable packaging has become a purchasing criterion and factor in brand loyalty.
The environmental impact of packaging is now more widely recognized. Shockingly, about 25% of the 8.3 billion tonnes of plastics produced between 1950 and 2015, equivalent to the weight of 822,000 Eiffel Towers or 80 million whales, come from packaging. Only 14% of this plastic packaging will be recycled, and around 24% of global supply chain shipments contain empty space. More than 90 countries have implemented strict bans on non-recyclable packaging. As a carrier, DHL must anticipate the implications of these changes. We also observe a stronger willingness among the companies we work with to invest in environmentally friendly logistics methods. Packaging is now a significant concern, and eco-responsibility is non-negotiable, even in the current epidemic context.
To address these challenges, it is essential to develop alternative materials that are recyclable and reusable to replace plastic packaging. For example, the use of recyclable films with reinforced fibers can provide the same level of protection with less raw material, reducing costs and waste. DHL also focuses on diagnosing wasted space in packaging, and by effectively adjusting packaging to its content, the size of certain boxes can be reduced by 40%. The broader adoption of Internet of Things (IoT) technologies will lead to smarter and more connected packaging at more affordable costs, bringing changes to logistics processes. DHL believes that achieving the next level of packaging performance requires collaboration with supply chain experts, packaging specialists, and brands.
To learn more about the DHL Trend Report “Rethinking Packaging,” click here [insert relevant link]. You can also access the study via this link [insert relevant link].
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