The European Commission has set a plan to implement a regulation that establishes limits on the size of packaging and the amount of empty space in boxes shipped by online retailers throughout Europe.
For e-commerce specifically, retailers will have to ensure that the empty space in their packaging does not exceed 40%. 1
This regulation is in response to the growing environmental impact of e-commerce, as the volume of packaging waste has increased significantly, especially in the e-commerce sector.
In this article, we will take a look at how it will impact you and other businesses and what you can do about it to tackle the upcoming complexities.
What does this mean for business?
The new regulation is expected to have a significant impact on e-commerce retailers operating within the EU, as they will need to make changes to their packaging and logistics processes to comply with the new regulations.
For retailers, this regulation translates to a requirement to maintain a minimum fill-rate (total volume of the package occupied by the product itself) of 60% in packages, which means that the unutilized space or ‘empty space’ should not exceed 40% of the total package volume.
The new regulation also aims to reduce the use of unutilized space and void fills, which are materials such as bubble wrap, polystyrene, air cushions, and paper. While these materials are often used to protect fragile items, they also contribute to the increasing volume of packaging waste.
For retailers, this means that they will have to find new and more sustainable packaging methods and update their packaging processes, while still ensuring that the products are adequately protected during transit.
Some potential solutions include using more compact packaging materials or implementing more precise and efficient packing methods that minimize the empty space within boxes. Retailers may also want to consider investing in automated packaging equipment or software that can help optimize the use of packaging materials and ensure compliance with the new regulations.
How to adapt to the new changes?
In order to adapt to the new regulations, retailers will have to implement a number of measures in their business processes.
One solution that retailers can implement is box assortment optimization. This involves analyzing the order history’s data and determining the optimal size and type of boxes for the order profile of the retailer. With a box assortment optimization, you analyze how many box types, and the corresponding dimensions, you need to achieve an average 60% fill rate.
Another solution that retailers can implement is the implementation of cartonization software. Cartonization involves arranging items in the most efficient way to fill the box, reducing the amount of empty space, and increasing the fill-rate. Retailers can use software tools to optimize the cartonization process and ensure that the fill-rate of packaging is up to standards.
By implementing these solutions into your business processes, you can:
- Reduce the amount of empty space in the packaging and increase fill-rate,
- Minimize product damage during transit,
- Decrease costs on packaging materials and shipping,
- Ensure compliance with regulations,
- Improve supply chain efficiency and reduce waste,
- Improve customer satisfaction by reducing the environmental impact of packaging.
Conclusions
The EU's upcoming packaging regulation is set to have a significant impact on businesses across the logistics industry. While this may present some challenges for companies, there are solutions available that can help to adapt to the new requirements. By implementing these solutions, businesses can not only meet the requirements of the new regulation but also improve supply chain efficiency and reduce costs.
Furthermore, these solutions can help to improve the environmental impact of their packaging, which will not only be in compliance with the regulations but also will be appreciated by the customers.
It's never too late to start seeking solutions, and now is the time to take action.
At Optioryx, we specialize in helping businesses to achieve their sustainability goals. We provide the necessary support and guidance to integrate profitable and sustainable packaging methods and techniques that will help your business to optimize fill-rate and reduce waste.
Don't wait any longer, contact us to find out how we can help your business adapt to the new regulations.