Packaging: from cost center to competitive advantage

For the past few years, the logistics profession has been paying more attention to packaging—realizing that it can hold the key to such issues as reducing damage rates, driving sales, and increasing cube utilization. Perhaps the most recent indication of that increase in interest is third-party logistics provider Genco's announcement earlier this year that it was launching a contract packaging business unit.

Genco has performed contract packaging for its customers for many years. The recent announcement, however, turns this service into a formal business unit led by Dave Mabon, who previously was the company's chief operating officer and chief customer officer.

As a part of the new service, Mabon says, Genco handles both the tactical and strategic side of packaging. It will make sure that its customers' packaging fulfills their marketing, manufacturing, and supply chain goals and perform on-going analysis to make sure that packaging more cost effective. The service provider will also handle all the actual packaging of its customers' products, club store packaging, shrink wrapping, pallet displays, clamshells, blister packs, cartoning, pre- and post-holiday projects, and specialty products.

"Contract packaging is a growing business segment and an excellent opportunity for us to deliver initial and ongoing value to our customer's bottom line," says Mabon.