What are the key packaging performance indicators (PPIs) and how do you track them?

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Packaging is a crucial aspect of distribution logistics, as it affects the quality, safety, cost, and sustainability of your products. However, how do you know if your packaging is performing well and meeting your customers' expectations? That's where packaging performance indicators (PPIs) come in. PPIs are measurable criteria that help you evaluate and improve your packaging performance across different stages of the supply chain. In this article, we'll explain what are the key PPIs and how do you track them.

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Nolan Bellot

Logistics and Supply Chain Enthusiast

1 PPIs for product protection

One of the main functions of packaging is to protect products from damage, spoilage, contamination, and theft during transit and storage. To measure the effectiveness of packaging, you should consider the damage rate (the percentage of products that arrive with visible or hidden damage due to packaging failure or mishandling), shelf life (the length of time that products can be stored without losing quality, freshness, or safety due to packaging degradation or permeability), and tamper evidence (the ability of packaging to indicate if products have been opened, altered, or tampered with during transit or storage). Assessing these PPIs can be done by conducting regular inspections, tests, audits, and surveys on packaged products at different points in the supply chain such as warehouses, carriers, retailers, and end-users.

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Nolan Bellot

Logistics and Supply Chain Enthusiast
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Tired of playing the "did my package work?" guessing game? No more! Let's talk numbers AND protection. Your packaging's success story isn't just about how it looks – it's about how it *performs*. Think of it like this: Your package is your product's superhero armor. ?? Damage Rate: Think of it as your product's ouch-o-meter. Are things arriving broken or banged up? Track that percentage! Shelf Life: Nobody wants stale snacks. How long do your packaged goods stay fresh? Tamper Evidence: Seals and special design features shout "Hands off!" Does your packaging have this? In my experience, setting targets for these numbers is a game-changer. I've even seen damage rates drop from 15% to under 5% with some smart packaging tweaks!

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2 PPIs for cost efficiency

Optimizing costs and resources throughout the supply chain is another key benefit of packaging. To measure cost efficiency, you should track relevant PPIs such as packaging material cost, labor cost, and waste cost per unit of product. Collecting and analyzing data on packaging material consumption, inventory, labor hours, waste generation, and disposal methods can help you track these PPIs. Additionally, life cycle assessment (LCA) and total cost of ownership (TCO) tools can allow you to compare and evaluate different packaging options and scenarios.

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3 PPIs for customer satisfaction

To ensure customer satisfaction and loyalty, the final function of packaging is to meet their needs, preferences, and expectations. To track this, you can conduct market research, feedback surveys, focus groups, and online reviews to assess your packaging design, performance, and perception. Additionally, you can use tools like customer satisfaction index (CSI) and net promoter score (NPS) to measure and improve customer retention and advocacy. Specifically, you should consider the functionality of your packaging - how it facilitates use, handling, storage, and disposal - as well as its aesthetics in terms of color, shape, texture, graphics, and labels. Additionally, you should consider its sustainability by using materials and processes that are renewable, recyclable, biodegradable or compostable.

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4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the key packaging performance indicators (PPIs) and how do you track them?

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1 PPIs for product protection

2 PPIs for cost efficiency

3 PPIs for customer satisfaction

4 Here’s what else to consider

Distribution Logistics

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