Supply Chain Optimization Strategy - Product Packaging Optimization Design

Logitech is the world's largest provider of personal computer peripheral equipment. Its products mainly include mouse and keyboards, interactive game consoles, and audio and video products. Logitech's products are well known and sold in more than 100 countries around the world, but its main production sites are In Asia, Logitech needs a lot of manufacturing and global distribution of products, so Logitech must emphasize excellent planning and efficient processes to ensure that products are quickly sent from the manufacturing base to the world.

Like many retail products, Logitech relies on fantastic packaging to attract customers. “Product packaging is very important to us. Packaging is an extension of our products. We must use packaging to demonstrate the advantages of our products and map out our commitment to high quality and continuous innovation.” For products, packaging must be tailored to reflect The appearance and multi-view aesthetics of the product, while the packaging must also be suitable for the retailer's display style.

However, packaging that emphasizes appearance has a negative impact on supply chain efficiency. The company shipped its products from Asia to the world by stacking products on pallets and optimizing the number of products according to container space. “Unfortunately, product packaging that is beneficial to retailers may not be beneficial to product distribution, and retail packaging is not a fixed size and shape, making it difficult to stack and transport containers and pallets. Sometimes, With a slight adjustment in the size and shape of the packaging, it is possible to increase the number of unit pallets by 200-250."

This change sounds simple, but implementation is not easy. Product packaging design is the responsibility of the marketing department, not the supply chain team. "Although low-cost operations are important, they cannot affect product sales." As long as a product package is available, it is difficult to adjust it. “Retailers view products as new products. This will replace all existing inventory with new packaged products, resulting in huge adjustment costs.” Therefore, improvement must consider the proper packaging from the beginning of the design.

The company's solution is to enable the supply chain team and the marketing department to establish close internal partnerships and allow the supply chain team to participate in the product development process earlier. This means that the two parties must compromise. “Our job is to find the most cost-effective way to global procurement and distribution with the most needed packaging design.” Now, focusing on the internal cooperation of the supply chain organization and marketing department not only enables Logitech to efficiently Products are sent to customers, while also retaining the company's innovative product image and excellent product quality.