When it comes to environmental sustainability in transport logistics, the focus is on engines and fuels, and when it comes to efficiency, the magic word is automation: robotics, AI-based route planning, and so on. Transport packaging is not on everyone’s radar. But packaging is extremely important for automating logistics processes – and it also offers many opportunities for optimization from an ecological perspective. This makes next-generation packaging an important trend for the future of logistics.
The Essentials in Brief
Next-generation packaging includes innovative material options for primary, secondary, and tertiary packaging, as well as intelligent technologies integrated into the packaging to optimize logistics processes and make them more sustainable:
- Intelligent packaging systems send location and progress data, enabling seamless control of the delivery process and tracking. They also monitor the condition of packaged goods during transportation and storage.
- Active packaging solutions contain additives to maintain or extend product quality and shelf life.
- Sustainable packaging based on recycled or organic materials is complemented by closed-loop or refillable systems.
Significance of Next-Generation Packaging in Logistics
E-commerce is driving demand for smart, yet cost-effective packaging solutions with a strong focus on sustainability. Logistics must respond to meet customer demands.
Next-Generation Packaging in Summary
Next-generation packaging is about using packages to make storage and delivery processes as efficient, safe, and sustainable as possible. This is achieved, for example, through the integration of technologies for traceability or condition monitoring, through active material solutions for specific contents, as well as through recyclable, reusable, or biodegradable packaging materials.
Interacting Solutions for Tomorrow’s Packaging Logistics
The global packaging market is growing rapidly with no end in sight. Population growth, rising standards of living in emerging markets, and e-commerce-driven consumption and shopping patterns are putting product and transport packaging at the center of customer interest.
The boom in demand places new requirements on packaging. Both quantitatively and qualitatively. For transport logistics providers, the challenge is not only to manage sheer volume with greater efficiency, but also to combine this with a positive customer experience (on both the consignor and consignee sides) and environmental sustainability.
Advanced Packaging Technology Improves Information Exchange
Recent advances in packaging technology contribute to logistical efficiency and customer experience, including the integration of radio frequency identification (RFID) tags and other sensors from the internet of things. This modern technology facilitates interaction: what initially sounds abstract can easily be translated into concrete applications for transport packaging. With innovative packaging, an exchange takes place – especially at the information level – between
- packaging and consignor
- packaging and consignee
- packaging and content
- packaging and carrier
The interaction between packaging and consignor/consignee is primarily related to location information and forecasting deliveries. This is not new, but it is an area where packaging technology can make a significant contribution to optimizing shipment tracking. For carriers, real-time tracking allows them to better monitor the goods being transported.
Intelligent Packaging Improves Quality and Safety
The interface between content and packaging is expected to be a major driver of innovation. In particular, advances are expected in quality control and protection of transported goods. Intelligent packaging systems monitor the internal condition of packaged goods to provide information about their quality during transportation and storage. In the event of deviations, they inform the carrier or warehouse operator.
To this end, smart packaging integrates hardware components such as time-temperature indicators (TTIs), freshness and ripeness sensors, as well as RFID and other tags. This helps to maintain product quality and reduce global waste.
Food and pharmaceutical logistics play a key role here. This is especially true in the fresh and cold chain, where intelligent packaging ensures temperature stability during transport and allows shipment status to be verified upon arrival. But the potential applications of smart packaging are not limited to these sectors. In logistics and supply chain management, smart packaging solutions to monitor and protect shipments are also beneficial for goods from many other industries.
Active Packaging Means Active Product Protection
Active packaging involves the targeted release of substances to the packaged food or to the atmosphere surrounding the food (releasing systems) or the removal of substances (adsorption). These interactions are intended to extend the shelf life of the packaged product or to maintain or improve its condition.
Active packaging’s share of the global packaging market will increase significantly in the coming years. Examples of active packaging include antimicrobial packaging, anti-corrosion packaging, moisture or oxygen adsorbents, and packaging with a heating or cooling function.
Active packaging may also be designed to respond to changes in the external or internal atmosphere of the package and be combined with signaling functions (cf. “Intelligent Packaging” above). As such, they can be very useful not only for the food, life science, and healthcare sectors but also for the transport of, for instance, lithium-ion batteries – a relevant future market.
Special Case of Modified Atmosphere Packaging (MAP)
MAP is the targeted modification of the gas composition within a package during the packaging process. This allows perishable and climate-sensitive products to be transported worldwide. To ensure that the goods reach their destination in the best possible condition, the internal atmosphere of the packaging must be continuously monitored, maintained and, if necessary, adjusted.
The future relevance of MAP technology is reflected in its ability to significantly extend shelf life, thereby reducing global food waste and promoting secure worldwide food supply chains. It also facilitates the transport of pharmaceuticals such as vaccines, as demonstrated during the COVID-19 pandemic.
Innovative Packaging is Environmentally Sustainable Packaging
Sustainable packaging is a major trend. This includes optimizing package sizes, using recycled or bio-based materials, and introducing refill systems or circular supply chains. Water-soluble, biodegradable, or even edible solutions are being considered to effectively address sustainability challenges. It is crucial that these sustainable solutions are compatible with other packaging technology developments and the products being transported to ensure safe storage and transportation of each shipment.
In addition, when it comes to packaging sustainability, more and more companies are turning to minimalist packaging designs and smaller packaging sizes to reduce shipping volumes, consumption of packaging materials, and CO2 emissions through fewer truck rides.
Regulations and legislation, such as the new sustainable packaging rules and packaging reduction targets recently adopted in the European Union, will continue to encourage companies to implement environmentally friendly and efficient packaging solutions.
Pack Right, Rate Light – EasyPallet by DHL Freight
In transport logistics, pallets are the typical example of tertiary packaging. Well-packed pallets make handling easier for us and, with EasyPallet, now offer cost savings to you as a consignor. With DHL Freight, you can reduce LTL freight costs by packing your pallets neatly.
Our new offer rewards well-packed pallets with lower rates for LTL shipments throughout Europe. You can also take advantage of our additional premium service options for your well-packed pallet, including priority handling and delivery before 10am or 12pm.
How can you best meet our packaging standards? We have created a special white paper on this topic: “Your Guide to Picture-Perfect Pallets”. Gain a competitive edge in your logistics operations by downloading our comprehensive white paper. Here you will find valuable tips and techniques for perfect pallet packaging and significant cost savings.
To learn more about EasyPallet, click here.
The brochure is available for download here.
What Challenges Does the Evolution of Transport Packaging Pose for Logistics?
Next-generation packaging has the potential to significantly improve the efficiency and reliability of logistics and the supply chain. However, this potential requires adjustments to transport and warehouse logistics.
As manufacturers and retailers change their packaging materials and technologies, logistics service providers must adapt; this means implementing next-generation packaging processes and re-evaluating current procedures to make sure that new types of packaging are handled safely on conveyors, scanners, etc., so that the contents of these packages arrive at their destination undamaged.
To best adapt, logistics companies need to develop their own solutions and have the operational capabilities required for each innovation so that services meet customer-specific standards.
The transition to next-generation packaging presents some specific challenges:
- Environmental balance of intelligent solutions: next-generation packaging sometimes depends on components such as batteries, sensors, displays, and circuits that are difficult to recycle and can contribute to an increase in electronic waste. Consequently, the long-term economic viability of such solutions also depends on their environmental impact.
- Cost pressure: successful implementation of innovative and sustainable packaging solutions requires investment. Especially in times of economic instability, companies may opt for a cheaper solution rather than spend extra money on a sustainable and technologically mature alternative.
- Customer acceptance: sustainability comes at a price. DHL eCommerce research shows that 28% of customers worldwide are willing to pay for sustainable packaging – but an equal percentage are not.
- Collaboration between the various players in the supply chain: collaboration is critical to the adoption of innovative circular packaging solutions. These need to be implemented across all sectors. There are barriers, such as a lack of take-back services for reusable options or financing gaps for closed-loop solutions in terms of a circular economy.
- Deviating regulations: different countries and regions have different regulations. Often, additional specific regulations apply to the various components of smart packaging. Keeping up with regulations in a rapidly changing world is time consuming and resource intensive.
