Reducing logistics costs is a must if you want to be a market leader

That’s why Walmart has partnered with Packsize and created a special machine that packs custom boxes.

The world of business, at any level, has undergone significant changes in recent years.

The events of recent world history have had such an impact as to subvert the rules and break the economic tranquility, even of the most powerful companies in the world.

Today it is no longer a question of planning business improvements with a view to the future.

Every company needs to reduce costs in the supply chain

To survive, maintain balance sheets within the historical average of the business, and aim to become market leaders.

For this reason, every company must invest in logistics: it is the only way to limit the damage and transform weak points into strengths.

This is why Walmart, the largest organized distribution chain in the world, with more than 11,000 stores in over 25 countries around the world, has definitively changed its business by improving every aspect of its production line.

He identified a partner with whom he set up a collaboration and revolutionized his way of planning and implementing the production chain, making the work more profitable.

Walmart’s partner is Packsize, an American packaging systems company, while the project conceived and implemented by the two companies is called Ultra 5: a machine that develops customized boxes depending on the needs of the product to be transported.

Put like this, it seems simple. However, it is an extraordinary invention, to say the least, because it has a great impact on Walmart’s cost-income balance:

  • up to 600 boxes per hour are produced on-site, eliminating the production and delivery times of an external supplier;
  • there is no waste of material and, consequently, production is sustainable and decidedly cheaper;
  • the configuration of each box adapts to the type of product and is designed to be easier to handle, to make the work of the conveyor simple and quick.

Customized boxes, therefore, mean organizing shipments as if you were playing Tetris at a much “simpler than easy” level.

Specifically, for Walmart, it means loading up to ⅓ more packages for each shipment, which translates into at least 30% more profit.

More profit, therefore, because thanks to Ultra 5, costs are reduced and work is faster and more effective.

So not only does the machine’s production speed allow each box to be packed and labeled in 30 minutes, reducing waste and increasing the quantity of goods transported for each shipment…

Thanks to customized packaging, whoever takes care of the delivery is easier to pick up the right package, as the size and appearance are adapted to the product and easily recognizable.

These improvements have allowed Walmart to make its supply chain more efficient and maximize profits.

If we add that, with a custom-made box, Walmart has made the action of unpacking customers’ products easier and more satisfying, then it is clear that the partnership with Packsize was a winning intuition.

Considering that for now Ultra 5 has been installed in only one of Walmart’s locations, the move by the US giant is not only a futuristic action with a certain economic impact on the company but a real checkmate for the reference market.

So what does Walmart teach us?

The right way to deal with difficulties is not to wait for things to get better on their own or to do the bare minimum to try to improve them.

First, to survive and then to aim to become a market leader, therefore every company has to improve logistics further.

This is why, where you do not have the internal resources to achieve certain objectives, you need the right partner.

Not every company can afford an automatic machine that produces custom-made boxes.

However, any company that intends to have more effective, safe, and profitable management of shipments can count on Logistics4You, a specialist in urgent and express deliveries.

For more information or to request Express and Dedicated Shipping now, click here.

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