Reducing packaging can look like a straightforward sustainability objective. Use less material and there is less material to manufacture, transport and dispose of. But supply chain packaging has another fundamental job: protecting products as they move between manufacturers, warehouses, carriers, retailers and customers. As explored in our earlier Supply Chain Labelling & Packaging: What Buyers Should Compare guide, packaging decisions need to consider protection, handling, automation, traceability and transport alongside sustainability. The challenge for supply chain teams is therefore not simply: How can we use less packaging?
A better question is: How can we use the minimum packaging necessary to move products safely and efficiently through the supply chain?
Getting that balance right can potentially reduce material consumption, waste, transport requirements and cost (without creating additional damage elsewhere in the operation).
Start with the Packaging You Already Use
Before redesigning packaging, establish what is currently moving through the supply chain.
That can include:
- Boxes and cartons
- Pallets
- Stretch film
- Void fill
- Protective inserts
- Bags
- Labels
- Tapes
- Strapping
Then examine where and why each material is used.
Packaging that looks excessive may have been introduced to solve a genuine operational problem.
Equally, specifications may simply have remained unchanged for years despite changes in products, processes or distribution.
Packaging Principle
Don’t remove packaging until you understand what job that packaging is doing.
Right-Size Packaging
Oversized packaging creates several potential inefficiencies.
A small product placed in a large carton may require additional void fill while occupying more warehouse, pallet and vehicle space than necessary.
Right-sizing aims to match packaging more closely to the dimensions and protection requirements of the product.
Potential benefits include:
- Less cardboard
- Less void fill
- Reduced package volume
- Better pallet utilisation
- Improved vehicle utilisation
- Lower storage requirements
This is particularly relevant in eCommerce and multi-SKU operations where a limited range of standard cartons may be used for products with very different dimensions.
The important measure is therefore not simply packaging weight.
Package volume matters too.
Measure the Empty Space You’re Transporting
A useful question for supply chain teams is:
How much of the space inside our packaging — and ultimately our vehicles — contains nothing?
Excess packaging volume can cascade through the supply chain.
A larger box occupies more pallet space.
That pallet occupies vehicle capacity.
More vehicle capacity may eventually mean additional journeys.
This creates a connection between packaging design and transport efficiency.
Supply Chain Insight
Packaging optimisation isn’t only about using less material. It is also about moving less air.
Providers operating across logistics and supply-chain infrastructure, such as DP World, illustrate the wider environment in which packaging dimensions, load efficiency and transport performance intersect.
DP World – https://www.dpworld.com/en
Optimise Pallets, Not Just Individual Packs
Packaging optimisation can become too focused on individual products.
Supply chain teams should also consider how those products combine into:
- Cases
- Pallets
- Roll cages
- Containers
- Vehicles
A slightly different carton dimension may allow significantly more products to fit on a pallet.
Conversely, packaging that appears efficient individually may create poor pallet utilisation when multiplied across an entire load.
This makes pack-to-pallet-to-vehicle analysis particularly useful.
The objective is to optimise the complete logistics unit rather than one box in isolation.
Reduce Void Fill
Where packaging is significantly larger than the product, additional materials may be needed to stop items moving during transit.
These might include:
- Paper
- Air pillows
- Foam
- Other protective materials
Reducing unnecessary space can reduce the requirement for void fill as well as the outer packaging itself.
But removing protective material indiscriminately can increase product damage.
Packaging testing should therefore establish the minimum protection required for the actual distribution environment.
Review Stretch Film and Pallet Wrapping
Stretch film is another area where relatively small changes can become significant when multiplied across thousands of pallets.
Organisations can examine:
- Film specification
- Film thickness
- Number of wraps
- Wrapping tension
- Load stability
- Machine settings
- Manual versus automated wrapping
The aim should be to achieve the required load containment with the appropriate quantity of material.
Suppliers such as Castle Industrial Supplies operate across industrial packaging and workplace products that form part of these everyday supply-chain requirements.
Castle Industrial Supplies – https://castleindustrial.com/
Consider Reusable Packaging
Single-use packaging is not always the only option.
In closed or predictable supply chains, reusable packaging can potentially replace disposable alternatives.
Examples include:
- Reusable crates
- Totes
- Pallets
- Containers
- Protective transit packaging
The business case depends on more than the purchase price.
Supply chain teams should consider:
How many times will the packaging actually be reused?
Other factors include:
- Return logistics
- Cleaning
- Storage
- Loss rates
- Repair
- Tracking
Reusable packaging makes most sense where organisations can reliably recover and recirculate it.
Make Packaging Work with Automation
Warehouses are increasingly automated, which creates another consideration.
Packaging must work reliably with:
- Conveyors
- Automated storage
- Sortation systems
- Robotics
- Scanning equipment
- Labelling systems
Kardex, for example, provides automated storage and retrieval technologies where product dimensions, containers and handling requirements can influence how efficiently goods move through an automated environment.
Kardex – https://www.kardex.com/en-gb/
Packaging optimisation should therefore consider the warehouse system as well as the transport network.
A change that saves material but causes repeated handling problems may simply move cost elsewhere.
Don’t Forget the Label
Reducing packaging materials should not compromise the information required to move products accurately.
Labels may carry:
- Barcodes
- Product identification
- Handling instructions
- Destination information
- Batch or lot numbers
- Regulatory information
- Traceability data
Markem-Imaje provides industrial marking, coding and product-identification technologies used across manufacturing and supply-chain environments.
Markem-Imaje – https://www.markem-imaje.com/
As packaging changes, businesses should confirm that labels and codes remain readable, correctly positioned and compatible with automated scanning.
This reinforces the principle from our first article: Packaging protects the product. Labelling protects the information travelling with it.
Use Packaging Data to Identify Waste
Packaging improvement becomes easier when organisations can measure what they are using.
Useful data might include:
- Packaging material per shipment
- Packaging cost per order
- Carton utilisation
- Void-fill consumption
- Pallets shipped
- Product damage
- Returns
- Vehicle utilisation
The objective is to connect material reduction with operational outcomes.
If packaging material falls by 15% but product damage doubles, the change has probably not delivered the intended improvement.
Consider Packaging and Delivery Together
Packaging decisions cannot be completely separated from how goods are transported.
Parcel networks, pallets, dedicated vehicles and international freight can expose products to different handling conditions.
Providers such as GFS operate across multi-carrier delivery environments, where parcel dimensions, weights, destinations and carrier requirements can influence fulfilment decisions.
GFS – https://gfsdeliver.com/
Supply chain teams should therefore understand the distribution environment before changing packaging specifications.
Connect Packaging with Wider Operational Systems
Packaging sits within a broader flow of products and information.
Manufacturing systems, warehouse platforms, automation, coding equipment and logistics systems may all interact with it.
Elisa Industriq UK provides industrial software and digitalisation capabilities supporting manufacturing and operational environments, while suppliers such as IWS Group operate across products and services supporting warehouse and industrial operations.
Elisa Industriq UK – https://elisaindustriq.co.uk/
IWS Group – https://iws.group/
The opportunity is to treat packaging as part of an integrated supply-chain process rather than a standalone consumable.
Understand Extended Producer Responsibility
UK organisations also need to understand how packaging regulation affects them.
The UK’s packaging Extended Producer Responsibility regime places obligations on organisations that supply or import packaging, depending on their activities and size.
Businesses in scope may need to collect and report packaging data, while associated fees are intended to place more of the cost of managing packaging waste onto producers.
GOV.UK provides guidance on determining whether an organisation is affected and what information may need to be reported.
GOV.UK – Extended Producer Responsibility for Packaging – https://www.gov.uk/guidance/extended-producer-responsibility-for-packaging-who-is-affected-and-what-to-do
This makes accurate packaging data increasingly relevant to both sustainability and compliance.
Don’t Replace One Problem with Another
A packaging change can look sustainable in isolation while creating unintended consequences elsewhere.
For example:
Less protective material → more damaged products
Lighter packaging → poorer pallet stability
New material → reduced recyclability
Reusable packaging → inefficient return transport
Smaller pack → problems with automated handling
That is why packaging decisions should be evaluated across the complete lifecycle.
Optimisation Principle
The best packaging reduction is the one the rest of the supply chain doesn’t have to compensate for.
A Practical Sustainable Packaging Checklist
Supply chain teams should ask:
- What packaging materials are we currently using?
- Why is each material required?
- Are packages appropriately sized?
- How much void space are we transporting?
- Can void fill be reduced safely?
- Are pallet dimensions optimised?
- Can stretch film or wrapping be reduced?
- Could reusable packaging work in closed-loop flows?
- Will changes work with warehouse automation?
- Are labels and codes still reliable?
- How will changes affect product damage?
- Can packaging data support EPR requirements?
- What impact will changes have on transport efficiency?
Frequently Asked Questions
What is sustainable supply chain packaging?
It involves reducing the environmental impact of packaging while still meeting requirements for product protection, logistics, handling and information. This can include right-sizing, material reduction, recycled or recyclable materials, reusable packaging and improved transport efficiency.
What is packaging right-sizing?
Right-sizing means matching packaging more closely to the size and protection requirements of the product, potentially reducing excess material, void fill and transport volume.
Is reusable packaging always more sustainable?
Not necessarily. Its performance depends on factors including reuse rates, return distances, cleaning, loss and the alternative packaging being replaced.
How can packaging reduce transport costs?
Smaller or better-designed packaging can improve pallet, container and vehicle utilisation, potentially allowing more products to move within the same transport capacity.
Product Guide
Elisa Industriq UK
Provides industrial software and digitalisation solutions supporting manufacturing, production and operational environments.
Website: https://elisaindustriq.co.uk/
GFS
Delivery technology and multi-carrier specialist helping businesses manage parcel delivery, carrier selection and fulfilment operations.
Website: https://gfsdeliver.com/
IWS Group
Industrial and warehouse solutions group providing products and services supporting storage, handling, safety and wider operational requirements.
Website: https://iws.group/
Kardex
Provides automated storage and retrieval systems and associated warehouse technologies designed to improve storage, picking and material-flow operations.
Website: https://www.kardex.com/en-gb/
Markem-Imaje Ltd
Industrial marking and coding specialist providing product-identification, traceability and packaging-intelligence technologies.
Website: https://www.markem-imaje.com/
Castle Industrial Supplies Ltd
Supplier of industrial, packaging, warehouse and workplace products supporting commercial and logistics operations.
Website: https://castleindustrial.com/
DP World
Global logistics business operating ports, terminals, freight, warehousing and wider end-to-end supply-chain services.
Website: https://www.dpworld.com/en
From Packaging Reduction to Supply Chain Optimisation
Sustainable packaging should not be viewed as a competition to remove as much material as possible.
The more useful objective is:
protect → right-size → consolidate → transport → recover → measure
That means considering packaging from the product itself through to the pallet, warehouse, vehicle and eventual recovery or disposal.
The result can be more than a reduction in packaging waste.
Better packaging decisions can potentially reduce materials, improve warehouse utilisation, increase transport efficiency and lower cost — while continuing to protect the products moving through the supply chain.
The Total Supply Chain Summit connects senior supply-chain professionals with carefully selected suppliers through pre-arranged one-to-one meetings, providing an opportunity to explore packaging, labelling, warehousing, logistics and wider supply-chain solutions.
Related Reading
This article follows our earlier Supply Chain Labelling & Packaging: What Buyers Should Compare guide, covering packaging protection, labelling, coding, traceability, automation, sustainability and supplier evaluation.
Together, the two articles move from choosing the right labelling and packaging solutions to optimising packaging across materials, warehousing and transport while maintaining product protection.
Sources
- GOV.UK – Extended Producer Responsibility for Packaging: Who Is Affected and What to Do – https://www.gov.uk/guidance/extended-producer-responsibility-for-packaging-who-is-affected-and-what-to-do
- GOV.UK – Packaging Waste: Prepare for Extended Producer Responsibility – https://www.gov.uk/guidance/packaging-waste-prepare-for-extended-producer-responsibility
- WRAP – Packaging – https://www.wrap.ngo/taking-action/plastic-packaging
- GS1 UK – Packaging and Sustainability – https://www.gs1uk.org/
- DP World – https://www.dpworld.com/en
- GFS – https://gfsdeliver.com/
- Kardex – https://www.kardex.com/en-gb/
- Markem-Imaje – https://www.markem-imaje.com/
Image credit: https://unsplash.com/photos/shallow-focus-photo-of-gray-steel-muscle-rack-sxhVoUrItmQ
