One in four packaging shipments late

Packaging supply chain “old fashioned”, say half of e-commerce firms

A third of e-commerce vendors are looking to build stronger relationships with packaging suppliers
A third of e-commerce vendors are looking to build stronger relationships with packaging suppliers

E-commerce companies in the UK are losing an average of £150,000 annually to packaging waste, according to a new report, with half calling the packaging supply chain “old fashioned.”

In response, a majority (57%) of these firms have highlighted waste reduction and sustainability as a major priority, according to the study by packaging process firm Sourceful.

One in four (25%) of shipments to surveyed firms were delivered late, and one in 10 (10%) contained packaging that was either damaged or of poor quality.

Vendors have begun investing heavily in technological solutions to control the wastage, with 71% of leaders earmarking funds for packaging technology.

For start-ups, the favoured investments were AI forecasting (45%) and real-time tracking (40%). 

Nearly half of larger companies (44%) are investing in robotics, with 40% spending on augmented reality technology, and 49% on real-time tracking.

Vendors were not just looking for a technical edge, however: one third (33%) of e-commerce companies said their key priority was to strengthen their relationships with packaging suppliers to help cut waste and meet their ecological goals.

Sourceful founder, Wing Chan, said: “This study underscores the packaging challenges faced by online retailers.

“The UK e-commerce landscape is ultra-competitive and businesses need a smart solution that can give them an edge. Buyers need a great product, where both form and function live up to their values and consumer expectations on sustainability.”

Companies’ routes to sustainability differed depending on their size.

Large companies, for example, prioritised spending on new packaging materials, with 63% investigating new and sustainable materials.

For medium companies, however, the focus fell on reducing waste: 65% had committed to this focus.

Sourceful recently launched what it claimed was the first free-to-use generative AI tool by a company in the packaging category.