Reduced Labor and Equipment. In a combined packaging/distribution operation, labor and rolling stock are deployed where they're most needed at any given time, across multiple functions. Cross-trained workers can address peak demands in the DC or the co-pack area. Management costs are also reduced, and the functions can share security, clerical, maintenance, and other facility staff.
Reduced Damage. The more product is moved, the greater the potential for damage. If it's a liquid product, the chance of shrinkage is even higher because damage to one bottle can destroy multiple cases.
Reduced Material Costs. Companies can streamline material spend—for example, purchasing bulk corrugate at a commodity price—by bringing packaging in-house and integrating it with DC operations. Those that have pursued a Lean path can operate in a more just-in-time fashion, making smarter decisions about procurement, storing less packaging materials, and avoiding packaging obsolescence when lines switch over.