Staples Smart-size Packaging & Packsize Technology

If you are a frequent online shopper as I am, have you ever thought about their packaging? Are the packaging the exact size of your merchandises, or huge boxes with small goods inside? How would you deal with the shipping boxes after you receive the package? Throw it away or keep it for future use?

I am a frequent online shopper who relies her most non-grocery shopping on the internet, so I deal a lot with receiving different packages from all around the country. Trying to be a more frugal and environment friendly person, I always keep the boxes instead of throwing them right away in case of possible future use. While based on my past experience, different industries and companies have diverse styles of packaging: cosmetics and clothes companies tend to use larger boxes and air pillows for their relatively small product, however electronics stores and bookstores are more likely to use exact size of their product. During my collecting of these shipping boxes, the size and utility of them first came to my mind. Generally, the boxes are larger than what they are needed to be. So why don't make them more customized and fit? In order to address this problem, Staples gives a good try.


In 2013, Staples, Inc. and Packsize International won the first place in Supply Chain Innovation Awards for their smart-size packaging.

With $24 billion in sales and its customer-centric strategy, Staples is the world's largest office supply company and the second largest retailer on the Internet, shipping millions of cartons annually to consumers and businesses throughout North America. But even the most sophisticated and automated fulfillment center could not address one of the key prevailing customer concerns: excessive packaging. The company had long been searching for solutions that curtailed the use of oversized corrugated and excessive filling material for its shipments.

In 2012, Staples adopted a transformational new technology known as “on-demand packaging” from Packsize International and launched its “Smart-size Packaging Program”. This solution allows the leading-edge retailer to automatically create a custom-sized carton specific for every less-than-full-case order it ships. These orders account for approximately 40 percent of Staples’ order volume.
By introducing this new packaging technology, Staples is able to
•   Save 20% on total corrugated costs
Besides all the benefits from smart-size packaging technology, I couldn't help thinking about the drawbacks: does this technology require more human resource to monitor, to put instructions and to label each carton; does the customized cartons require more electricity and energy to produce? does the customized and diverse sizes of cartons increase the difficulty of arranging them in a shipping truck?
Besides all the benefits from smart-size packaging technology, I couldn't help thinking about the drawbacks: does this technology require more human resource to monitor, to put instructions and to label each carton; does the customized cartons require more electricity and energy to produce? does the customized and diverse sizes of cartons increase the difficulty of arranging them in a shipping truck?
Reference:

And another video introducing the Staples' Smart-size Packaging:  http://www.staplesadvantage.com/videos/smart-size/

•   Reduce at least 50 percent less storage space for corrugated.
•   Reduce unnecessary air pillow usage by 60%
•   Cut Staples' annual carbon footprint by more than 30,000 tons
•   Minimize its packaging's overall environmental impact on the planet.

The smart-size packaging technology involves new product design to increase operational effectiveness and substantially change the supply and demand in supply chain. Each progress our human being make is not perfect. As long as its benefits overcome the drawbacks and could lead to more advanced future progress, the new technology is worth adopting. And future business should be more customer-centric and flexible to customization.




Reference:
1. http://blog.packsize.com/staples/
2. http://www.dcvelocity.com/articles/20121127-staples-implements-customized-packaging-for-its-orders/
3. http://cscmp.org/resources-research/case-studies/practitioner
4. http://www.logisticsmgmt.com/article/warehouse_dc_technology_and_innovation_staples_smart_packaging_happy_custom