What role does packaging play in supply chain management?

Packaging plays a crucial role in supply chain management by primarily protecting products during transit. This protection is essential to ensure that goods arrive at their destination in the same condition in which they were sent. Proper packaging can absorb shock, prevent moisture from damaging the product, and deter tampering or contamination, all of which contribute to maintaining product quality and reducing return rates.

In the context of supply chain management, effective packaging also supports inventory management and storage. It helps in maximizing space efficiency and facilitating easier handling during transportation, warehousing, and distribution. While packaging can have marketing elements and impact costs, its foundational role in ensuring the safe delivery of products is fundamental to minimizing losses and improving overall supply chain efficiency.