Automotive packaging strategies

In the automotive industry, change is constant and new production strategies must be deployed quickly to achieve operational efficiency. Customers are demanding more technology, safety features, and customizable options with every new model. What’s more, trade policy changes and global supply chains can drive manufacturers to move to new locations, creating a ripple effect throughout their tiered supplier network. New packaging strategies can help automotive companies adapt to change and uncover new labor, warehouse, and product flow efficiencies.

Increasing customer demands

Automotive manufacturers are seeing changes in consumer expectations and preferences, such as the growing demand for more advanced safety technology and aesthetic exterior and interior customization options. Offering more technology and customization creates complexities with production and packaging. “As new innovative vehicle components are developed, it is important to engage packaging design and material experts early in the process before the automotive part is finalized for production,” says Darin Forgacs, Corporate Account Manager, Automotive Packaging, with Veritiv. “Packaging engineers should align with the parts development process to quickly develop new packaging options that use different materials. ISTA-certified testing can verify performance before the new packaging is implemented across your supply chain.” Forgacs says having consistent and proven packaging is key for efficiency, product protection, and cost containment.

Adapting to changing supply chains and trade policies

Raw material cost fluctuations and trade policies create challenges for automotive companies. As a result, companies may move the location of their production facilities, creating changes for tiered suppliers and their approach to packaging.

“If an OEM or parts supplier is relocating a plant in the U.S. to Mexico, they may have new opportunities for custom-designed expendable packaging that mixes different materials to improve strength while taking up less space,” says Forgacs. “The same automotive part may require multiple pack-out solutions. The key is designing packaging around the product and supply chain conditions – not around one type of packaging material.”

Innovative companies are gaining a competitive advantage by developing expendable and returnable packaging designs. These designs help ensure packaging consistency and predictable product protection should production locations change or when returnable packaging is lost or not returned in a timely manner.

There’s no doubt that trade policies, supply chain changes, and customer expectations are creating new packaging challenges for automotive companies both domestic and global. Innovative packaging strategies deliver operational advantages by helping you quickly adapt to changing business conditions while providing consistent product protection within cost targets.