Dive Brief:
- UPS and Sealed Air launched a strategic partnership on Monday to provide clients with custom packaging solutions that will both increase efficiency as well as reduce various costs.
- UPS customers will gain access to Sealed Air’s 27 Packaging Application Centers, which allow clients to design, test and analyze packaging performance.
- In addition, Sealed Air will participate in UPS’ customer loyalty performance, adding packaging solutions to the program’s hardware, software and peripherals portfolio.
Dive Insight:
The trend toward direct-to-consumer sales is bringing parcel delivery to the forefront of the supply chain. Whereas B2B2C commerce required the coordinated movement of inventory and subsequent packaging services, B2C commerce, particularly for e-tailers, relies heavily on parcel carriers for pick up, packaging and delivery.
As a result, UPS and FedEx — both of which expect record sales this year — are looking to extend their status as one-stop shops by providing services previously limited to specialized companies. The partnership between UPS and Sealed Air is just one example: UPS now also facilitates prototyping through 3-D printing solution centers worldwide, while FedEx recently announced it would store electronically-sold inventory for pickup by Newegg customers.
The advantages are numerous. A slimmed supply chain means increased brand presence, customer loyalty and potential gains in market share for these one-stop shops. Meanwhile, Sealed Air and other solutions partners gain an avenue by which to access small and medium businesses that may not operate at the necessary scale to purchase packaging machinery.
