Jack AmpujaSupply Chain Optimizers

Niagara University

Founded in Toronto in 1985 Have completed over 500 packaging projects

Staff of logisticians + packaging engineers Partner with Logistics Service Providers to

deliver efficiency & sustainability to their client SCO supports them with packaging expertise

Both Green Provider and Green Award Winner in USA…clients have won similar awards

Most organizations do not view packaging as part of the supply chain

Because impact of packaging is not understood, cost reduction & sustainability impact is grossly under-estimated

Many departments are involved in decisions marketing, purchasing, logistics, manufacturing,

QC, engineering….. all focus on different goals

All supply chain members share logistics inefficiency and sustainability shortfall

Packaging is typically seen as a marketing or engineering process- packaging impact on supply chain <10%- warehousing impact ~20%- freight impact ~60%

Yet typical client has focused on driving down packaging costs while logistics costs increase

…saving pennies on boxes by spending dollars in transportation

Typical box supplier or packaging engineer cannot resolve package freight cost issues Try to protect one product [lamp shade] or

packaging many units of one product [cereal boxes] Can be accomplished with software

They do not understand freight details or costs Commercial packaging software cannot do pick-

pack operations because of many different items shipping together

Thousands of new shippers No science applied to packaging Many daily shipments of one box per destination Lots of residential deliveries

Has changed cost profile of couriers which traditionally managed by weight

Typical e-commerce shipper achieves 60% cube utilization This means they ship 40% filler & air Many boxes are much worse

“Changing package characteristics and packaging practices can remove cost. A simple step such as reducing box height by two centimetres may save money on the box, transport, warehousing and possibly even on damaged goods. Packaging optimisation almost always contributes positively to reduce climate and environmental footprint.”

Erling Nielsen - Global Head of Supply Chain Development

E-commerce is not really a packaging issue …more freight & math problem

Packaging decisions require logistics input before box is created

Sustainability needs a corporate champion to gain traction

Packaging optimisation is all green Improves sustainability & profitability

About the only thing that comes to us without effort is old age. Gloria Pitzer, American writer

If all else fails, immortality can always be assured by spectacular error. John Kenneth Galbraith, Canadian-American

economist

Jack Ampuja, PresidentSupply Chain Optimizers LLCEmail: jtampuja@supplychainoptimizers.comPhone: 716 689 4601 Website: www.supplychainoptimizers.comExecutive in Residence @ Niagara UniversityWebsite: www.niagara.edu/supplychain