Packaging Unit Optimization

Which unit size is the best to answer customer requirements and still reduce handling and storage costs? The right size of the packaging unit not only depends on the order frequency of an article. Internal handling costs need to be considered as well in order to assure optimal lot sizes in replenishment and other processes.

Packaging unit optimization with ORion-PI^® identifies the ideal packaging unit sizes – even across different warehouse levels. The optimization takes place in a two-stage process:

1. ORion-PI^® first analyzes number and structure of customer demands based on actual and forecasted data such as order fluctuation, seasonal factors or changes in the product portfolio.

2. Customer demands then are compared with the logistics costs on the different distribution and process levels. Objective here is to find the optimal packaging unit combined with an efficient pricing – for sub-suppliers as well as for costumers.

ORion-PI^® supports the calculation and comparison of different scenarios to detect the potential for a packaging unit optimization. Customer scenarios show that packaging unit optimization can reduce warehouse stocks by up to 30%.

Packaging Unit Optimization with ORion-PI^® means a reduction of stocks and supplies while keeping storage and change-over costs at its lowest.