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The Importance of Your Product Packaging in Supply Chain Management

Product packaging plays an important role in various aspects of your business. It is part of marketing, protects your product, and is part of supply chain management. Take a closer look at why product packaging matters in supply chain management. 

Influences Ease of Storage

One of the biggest ways product packaging affects supply chain management is the ease of storage. This is crucial, as your product will need to be stored at various points along the supply chain.

It becomes even more important if your product may be sitting in a warehouse or a shipping container for a long time. 

Unique Shapes Aren’t Always Ideal

The concern for ease of storage is the primary reason most product packaging is rectangular. Yes, unique shapes stand out on the shelves more, but they tend to be harder to store. Or they may simply take up more space in shipping boxes or lead to excessive empty spaces in those shipping boxes. 

Influences the Cost of Transportation and Storage

The fact that the packaging influences the ease of storage also affects how much you will have to pay for shipping and storage. 

Most supply chain logistic companies will charge based on size and weight, among other factors. If your boxes are larger than they need to be, your shipping and storage costs will be higher than necessary. 

This is one of the main reasons companies develop packaging that takes up the minimal amount of space. That is why the best packaging manufacturers will offer a vast range of box styles and sizes. The more options you have, the more likely you will find one that works perfectly for a product. 

As a bonus, if your packaging is smaller, stores can fit more of your items on their shelves. 

Influences the Safety of Your Product in Transit

Product packaging also influences how safe your product will be while in transit. You need packaging that is sturdy enough to protect your product from damage as it moves through the supply chain. 

The only caveat is that this may lead to additional costs in terms of material. Extra protection can also make the packaging slightly heavier or larger, affecting shipping costs. 

But that small increase in price is worth it, as it keeps your products unscathed. You will lose more replacing damaged products than you would on extra materials or shipping costs. This is especially true when you consider how damaged products could negatively impact your company’s reputation. 

Always Check Your Supply Chain Requirements

Transportation and storage services that make up your supply chain will have specific requirements. At the very least, they will require your packaging to withstand basic storage and shipping conditions. There may be additional requirements, such as the ability to stack or handle the boxes. 


Your supply chain management will affect your product packaging needs. You need to ensure your packaging protects your product while in transit or storage. Plus, it needs to be small enough to keep costs low. 

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