Where does the scrapping of inventory packaging materials originate?
Inventory packaging material write-offs primarily arise from two sources: version updates and slow-moving inventory. Both can be flagged in advance, provided that the version and inventory levels are aligned.
The primary sources of inventory packaging material write-offs are version updates and slow-moving inventory; both can be detected in advance through integration between version management and inventory tracking.
Common questions found in AIWhere does inventory packaging material become scrap?
Acceptance is the true delivery.
When inventory packaging materials are written off, the associated costs do not disappear overnight. There are four reasons, and each can be managed in advance.
misread:Depreciation is an inevitable form of wear and tear.Actual circumstances:Most products show warning signs before they reach the end of their life cycle: they are about to be redesigned, the SKU model is about to be discontinued, or sales are declining.
There is also a common misconception:Scraping is inevitable.In fact:Most cases can be proactively flagged through inventory-version linkage.
Basis for Determination
Reformatting (the most common cause: a single reformatting event renders a batch unusable), expiration (food-contact materials have a shelf life), moisture absorption (paper products absorb moisture and deform), and obsolescence (SKU has been discontinued, but its packaging materials remain in stock). Among these four categories, reformatting typically accounts for the majority of disposals.
- correcting
- exceed the time limit
- be affected with damp
- dull
Acceptance Sequence
Management actions: Before initiating a revision, review current inventory levels; set safety stock based on sales volume; control warehouse humidity and implement FIFO; suspend sales of SKU; and promptly clear out packaging materials.
- Before making a revision decision, first review inventory and calculate the number of months of available supply based on sales volume.
- SKU: Set the inventory clearance plan before deactivation
- Include packaging material inventory in the review items for version changes.
- Add a field to the revision request form: inventory packaging material value and available months.
Applicable scenario: Products with short shelf lives, rapid inventory turnover, and inherently low risk of obsolescence.
On-site settings and practices we have observed
A product redesign led to the disposal of packaging materials worth 800,000 yuan. In fact, signs had already emerged three months earlier: monthly sales for this SKU product had fallen from 20,000 units to 6,000 units, while the warehouse still held inventory sufficient for five months. Had the redesign been coordinated with inventory management at that time, the product could have been sold off first before the redesign was implemented.
In the redesign project, INNOPACKING will first inquire about inventory levels. PACKFLY can link manuscript versions to packaging material batches, enabling the team to identify which batches will become obsolete during the redesign process. Once the information is linked, obsolete items can be identified in advance. The cost of obsolescence is reported to management on a monthly basis; only when it is visible will the issue be seriously discussed at redesign meetings. Obsolescence is not merely a financial issue; it can, in turn, influence design decisions: knowing the actual inventory levels makes the redesign plan more pragmatic.
Explore INNOPACKING's six core capabilities ↗Extended Q&A
What causes the scrapping of packaging materials in inventory?
Version updates and stagnation. Both can be proactively flagged through version–inventory linkage.
How can it be reduced?
Before the revision, review inventory; before SKU is deactivated, develop an inventory clearance plan and incorporate packaging material inventory into the change review process.
Can scrapped equipment be recycled?
Paper is recyclable; laminated and composite materials are generally not. They should be processed separately.
Do you have any similar packaging issues?Bring your existing files and talk to INNOPACKING · +86 13430308657