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September-October 2014
2014 marks the 10 year anniversary of the Gartner Supply Chain Top 25 ranking. This year we have a diverse set of large, global companies with mature, demand-driven supply chains. There are lessons to be learned from these supply chain leaders, many of whom have led their industries over the past decade. Browse this issue archive.Need Help? Contact customer service 847-559-7581 More options
The Box: Is Packaging Optimization the Last Frontier for Supply Chain Efficiency?
“Packaging remains a major area of supply chain optimization opportunity for most companies.”
—Bob Delaney in 1999 State of Logistics
So here we are 15 years after Bob Delaney’s seminal observation, and after a career as a supply chain executive for several major corporations and working on packaging optimization as a consultant for more than a decade, I would say the total results are underwhelming.
As Delaney long ago realized, the lowly corrugated box has a huge efficiency impact within the supply chain. Typically the shipping container makes up less than 10 cents of each supply chain dollar; the other 90 cents is composed of handling, storage, and transportation costs. Yet, far too many companies still focus on reducing the cost of the corrugated box—the 10 cents—when their real attention should be on reducing the impact of the box on the 90 cents spent on warehousing and transportation.
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Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.
September-October 2014
2014 marks the 10 year anniversary of the Gartner Supply Chain Top 25 ranking. This year we have a diverse set of large, global companies with mature, demand-driven supply chains. There are lessons to be… Browse this issue archive. Access your online digital edition. Download a PDF file of the September-October 2014 issue.Download Article PDF |
The Box: Is Packaging Optimization the Last Frontier for Supply Chain Efficiency?
“Packaging remains a major area of supply chain optimization opportunity for most companies.” —Bob Delaney in 1999 State of Logistics
So here we are 15 years after Bob Delaney’s seminal observation, and after a career as a supply chain executive for several major corporations and working on packaging optimization as a consultant for more than a decade, I would say the total results are underwhelming.
As Delaney long ago realized, the lowly corrugated box has a huge efficiency impact within the supply chain. Typically the shipping container makes up less than 10 cents of each supply chain dollar; the other 90 cents is composed of handling, storage, and transportation costs. Yet, far too many companies still focus on reducing the cost of the corrugated box—the 10 cents—when their real attention should be on reducing the impact of the box on the 90 cents spent on warehousing and transportation.
SUBSCRIBERS: Click here to download PDF of the full article. |
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