Hit several targets at once. We introduce one of the most effective methods to reduce the amount of packaging material you use.
Since the new German Packaging Act came into force in July 2022, online retailers should be thinking about how to reduce their consumption of packaging materials. There's now an option to ship products in custom-fit packaging — meaning no air gets shipped and no extra fill material is needed.
Most established E-Commerce brands have already switched to climate-neutral shipping. But there are several other key factors that go into decarbonizing the supply chain.
Alongside the last mile and transfer, packaging material is one of the biggest drivers of CO₂ emissions in E-Commerce.
Most online retailers don't realize this. While companies primarily try to cut CO₂ emissions before and after warehousing, there's huge untapped potential in reducing packaging consumption during the packing process to end consumers.
One way to ship less air would be to maintain a wide portfolio of different packaging sizes. But it's tough for online retailers to accurately predict the most common cart compositions and the right packaging sizes. For a few years now, though, there's been an alternative: automated packaging machines.
By using automated packaging machines like the CMC Genesys, ordered products can be packed in custom-sized boxes tailored to each shipment. Placing the products on the conveyor is still done manually, but every other step is fully automated. 3D cameras measure the dimensions of the products, continuous corrugated cardboard is cut to size, and out comes the finished package, which is then sorted by carrier.
This cuts packaging material consumption by an average of up to 50%. The cardboard offcuts are reused as fill material.
By switching to automated packaging solutions alone, E-Commerce brands can cut their CO₂ emissions by up to 20%.
The biggest downside of automated packaging tech is the high investment cost and the know-how required. The most common solutions need at least €1,000,000 in upfront capital. Most online retailers — especially small and mid-sized brands — don't have the financial resources for that kind of investment. On top of that, you need engineers and developers to set up the machines and integrate them with existing software architecture.
An alternative that avoids this kind of investment is outsourcing your shipping operations to a tech-driven fulfillment provider that already has the packaging machines and trained staff in place.
In traditional contract logistics, you used to have to accept an implementation phase of at least 3-6 months. Today's fulfillment providers offer easy integrations and onboarding processes, so shipping can often be outsourced within just a few weeks. By outsourcing order fulfillment to a logistics partner that already has automated packaging machines, online retailers can reap the benefits of this new technology without having to shoulder the cost of buying the machines.
Other benefits: online retailers can ship internationally at a lower average cost because volumetric weight drops and less raw material is needed for packaging, which in turn reduces cardboard costs.
Automating the packaging process is already a step forward in cutting packaging materials and CO₂ emissions. Within intralogistics, packing accounts for roughly 20-30% of the effort involved in order fulfillment.
Other processes that are already automated include goods receipt, storage, and order picking.
Some European logistics companies are already working on what's called a "dark warehouse" — a fulfillment center where no lights stay on, because every process runs automatically and no manual intervention is required.
The focus here isn't just process optimization and cost cutting, but decarbonization too. With most operational staff out of the picture, commute emissions disappear. Errors are also minimized, so the right product reaches the right recipient and re-shipments are only needed in rare cases.
If you'd like to learn more about dark warehouses or how automated packaging machines could benefit you as a retailer, talk to one of our fulfillment experts. Together we'll explore what's possible for you.
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