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How to reduce logistics costs with load optimization in construction industry

​Moving equipment and spare parts of varying sizes, sensitivity, and protection needs can quickly drive up logistics costs in the construction industry.

Any damage means potential delivery delays—imagine an engine mount or latch bracket being lost or damaged during shipment. Without these crucial parts, the excavators cannot operate, ultimately stopping the progress and causing costly setbacks. In addition, the size, shape, and weight of these goods can also contribute to inefficient use of space in containers. Proper packaging and well-planned shipments are often overlooked, but they are essential for saving resources, reducing transportation costs, and minimizing environmental impact. Follow along as we look into the way the companies can improve their logistical flow with a few simple steps. ​​

How Load Optimization and Packaging Drive Efficiency and Sustainability

​​​​​Maximizing cargo space focuses on efficiently using all available space. Underutilized containers are a common issue, often filled to only about 65% of their capacity,1 which leads to higher costs because companies still pay the full price for the container. ​​

​​​​Load optimization is all about arranging goods in containers and trucks to maximize space efficiency, reduce shipments, and cut costs. This is where packaging plays a crucial role. ​

Every product has different requirements for shock absorption, vibration resistance during transit. Optimized packaging ensures the right amount of protective material is used—just enough to keep the product safe without unnecessary waste. ​​

​​​​​Bulky boxes filled with foam are no longer the answer. More packaging doesn’t always mean better protection; it often means wasted space and materials. True protection comes from engineered solutions—tested in controlled environments to safeguard products while minimizing material use. Efficient packaging isn’t just about safety; it’s about smart, sustainable logistics.​​

​Strategic use of advanced technology and custom packaging can cut transportation time, costs, and fuel consumption by up to 25%2. This approach also reduces the number of required shipments and lowers CO2-eq emissions.​​

Warehouse services are crucial for streamlining logistics operations. These services include receiving shipments, repackaging products, fulfilling orders, and analyzing supply chains. Essentially, they help manage the flow of goods and optimize distribution centers. By improving both inbound and outbound logistics, businesses can create resilient, cross-border solutions that ensure smooth, efficient operations.

​​It is rare to find the full spectrum of deep logistical expertise in-house, so this is where specialized logistics providers can add significant value.​​

​By improving both inbound and outbound logistics, businesses can create a resilient, cross-border system that ensure smooth and efficient operations.

Why do construction companies outsource their logistics?

Outsourcing logistics isn’t just about handing off tasks—it’s about tapping into specialized expertise and end-to-end solutions that drive efficiency, cost savings, and sustainability. Here’s how:

  • Lower Costs Through Efficiency – A single provider managing both packaging and logistics ensures seamless load optimization and reduces waste. In-house logistics often lack tracking and visibility, leading to inefficiencies and missed savings.
  • Smarter Packaging Solutions – Strong yet lightweight packaging, customized to product size and needs, minimizes empty space, prevents damage, and reduces shipping costs.
  • Optimized Warehouse Operations – Streamlined services like receiving, repackaging, order fulfillment, and supply chain analysis help cut logistics costs, which can account for over 15% of total expenses.
  • Better Visibility & Control – Advanced tracking and monitoring tools provide real-time insights, ensuring shipments are secure and on schedule.
  • Reused Packaging = More Savings – Logistics partners can assess the entire supply chain to identify opportunities for reusing packaging, reducing costs, and improving sustainability.

 

Load Optimization In Practice

A leading American construction equipment manufacturer teamed up with Nefab to tackle damage and defects affecting machined engine cylinder liners during transit from the U.S. to China via road and ocean shipping. The goal? Eliminate damage and improve logistics efficiency.

To achieve this, Nefab developed a lighter-duty crate solution that streamlined packing and unpacking while enhancing material handling, storage, and transportation load planning. This optimized packaging design maximized the quantity per pack, reduced damage risks, and improved container fill ratios—both for sea containers and 53’ dry vans—ultimately cutting down the number of shipments needed per year.

The Results Speak for Themselves:

  • Container utilization improved by 20% and 22.5% across two projects
  • Quality claims and scrap rates dropped from 8% to 0%
  • CO₂ impact reduced by 16% and 38%, based on full end-to-end LCA analysis

By integrating smarter packaging and logistics solutions, Nefab helped its client achieve a more efficient, cost-effective, and sustainable supply chain.

Nefab developed a lighter-duty crate solution that streamlined packing and unpacking while enhancing material handling, storage, and transportation load planning.

Boost Supply Chain Performance with a Trusted Packaging and Logistics Services Partner 

A single packaging and logistics services provider, like Nefab, can assess the entire supply chain—both inbound and outbound—to identify hidden inefficiencies like excess packaging, underutilized cargo space, and unnecessary costs.   

With a holistic approach, companies can optimize logistics, reduce waste, and improve efficiency, leading to lower costs, fewer shipments, and a more sustainable supply chain. 

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