Product losses from shipping damage can cost manufacturers millions of dollars a year. And even when insurance covers these losses, supply chain disruptions have a negative effect on customer retention. Finding solutions to prevent shipping damage is good for your bottom line and builds your reputation as an industry leader. Where should you start?
Following industry best practices during the packaging process can significantly reduce shipping damage. The following tips apply to organizations in every industry, from OEM auto parts suppliers to medical device manufacturers.
Shipping and logistics require careful planning to minimize risks and maximize efficiency. Damage to components should be a key factor you consider in risk assessments. Certain products are especially sensitive to specific types of damage, such as:
Identifying the unique damage profile for high-value products helps you develop a shipping strategy that is effective for your market. For example, a wide range of ESD control packaging is available for sensitive electronics.
Once you know product-specific shipping vulnerabilities, the next step is to determine likely failure points in the supply chain. Not only does this guide your selection of transportation partners, but it also helps you choose the right shipping method for different items.
Some common damage sources include:
How can you discover the dangers hiding in your logistics process? Aside from using historical data, many manufacturers are turning to high-tech shipping sensors. Embedding sensors in control packages reveals product-specific insights, and it can help with vendor quality management.
The average package damage rate for third-party carriers in the U.S. is between 1% and 2%. Last-mile providers like FedEx and UPS often have much higher claims rates, sometimes between 7% and 11%.
These statistics highlight the importance of partnering with trustworthy providers in your supply chain, from 3PL companies to product packaging suppliers. Investing in high-performance or custom primary packaging for parts worth thousands of dollars can provide enormous overall savings.
In addition to counteracting conventional damage, parts manufacturers and distributors also need to consider the increasing risks from insider threats, theft, and pests:
There were more than 3,700 theft events involving cargo in 2024. Experts put the costs at between $450 million and $1 billion annually. For this reason, a growing number of manufacturers are including tamper-resistant and anti-theft systems on primary, secondary, and tertiary packaging. Careful vendor onboarding is also important.
In many industries, multiple steps of the supply chain involve shipping parts or assemblies that are sensitive to damage. Whether your organization sells products to data centers, science labs, aerospace companies, or defense contractors, keeping components secure is essential for customer satisfaction. The right shipping solution can prevent shipping damage cost-effectively.
If there’s one golden rule for shipping sensitive components, it’s to get rid of voids inside protective layers. Empty spaces allow for vibration and friction, and they also amplify the effect of impacts. All components need good support that prevents movement in transit, including circuit boards and intricate parts.
There are many ways to eliminate voids in packaging, and OEMs commonly combine them:
It’s also important to eliminate spaces in secondary and tertiary packaging. Examples include stackable trays and box dividers. To reduce fill costs, start by selecting a box that is the right size for the components.
Stretch wrap and banding can eliminate shifting between boxes and stabilize pallets. To avoid damage, it’s important to calculate the appropriate force load for palletizers.
Moisture can cause significant damage to electronic components, biochemical products, metal goods, and parts with specialized finishes. Plastic wrap provides some outer layer protection against accidental spills, rain, seawater, and other environmental exposure, but it’s not enough. High humidity and temperature variations can still lead to condensation inside packages.
To safeguard sensitive components, place them inside vapor barrier bags (or volatile corrosion inhibitor bags for sensitive metals), usually made of polyethylene or metalized paper. Always include desiccant packs inside boxes and containers, such as silica gel, calcium sulfate, or molecular sieve aluminosilicates.
Virtually all electronic components require ESD protection. This is tricky because common packaging materials are major sources of ESD, including conventional plastics. Fortunately, antistatic materials are available and affordable, from ESD-resistant thermoplastic trays to foam and bubble wrap.
Some devices also require shielding against electromagnetic interference. Static shielding bags and blisters use aluminum foil to safeguard parts, creating a Faraday cage effect.
Carefully evaluate the capabilities of different types of packaging. Sometimes, investing in a higher-quality package can save you money in the long run, not to mention offering better performance.
For example, certain types of plastic offer superior impact resistance and temperature control, potentially avoiding the need for other specialized layers. Similarly, using wood crates instead of stacked boxes may be the right call to reduce shipping damage from impacts on long-haul supply chains.
Discovering the ideal packaging doesn’t happen by chance. To improve perfect delivery rates, prevent shipping damage, and lower costs, your organization needs a product-centric logistics strategy. At Ready-Made Plastic Trays, we can precisely engineer a packaging solution that meets or exceeds your safety and security specs. Request a free sample today.