Following Costco's Packaging Specifications are critical to success.
Let me say that another way; Failing to follow Costco's packaging specifications can be a financially devastating mistake. If you've been following this blog you've heard us reiterate countless times that packaging is critical because Costco is a no-touch supply chain-- meaning, there is no extra handling or stocking of shelves. Once your shipping materials are removed, the Feature Pallet Display is ready to be shopped. Check out our CPG's article: Costco's Cross-Docking Choreography
Costco has invested a significant amount of time to setup the cross-docking process and investment to keep it running. How we do ensure our packaging does not get in the way? The answer is: follow and understand Costco's packaging specifications:
Click here to, download Costco’s Structural Packaging Specifications document.
Costco conducts random performance compliance audits to confirm that packaging meets specifications. If packaging is non-compliant, the item may be at risk of deletion, or subject to a 2% charge back reimbursing Costco's operational and handling costs as a result of non-compliant packaging.
It's important to work with someone that understands these specs inside and out. Talk to a professional. Quick overview:
No new products will be brought into the system unless it is compliant with Costco’s packaging requirements
Packaging must be engineered to maintain its structural integrity throughout Costco’s entire supply chain
Costco packaging specifications help to ensure that Costco’s employees and members are working and shopping in a safe environment
Costco’s goal is to drive out costs by eliminating extra packaging, handling, and corrugate waste, whenever possible
Packaging must be display-ready, with no handling required
A professional needs to provide you with the packaging designs and renderings complete with all required details to receive the Costco buyer’s approval for the following:
Package Engineering Factors and Performance Requirements
Unitized Pallet Requirements, Feature pallet dimensions, weight and cube efficiency
Blister Packaging and/or unit carton specifications, stretch cards, blister boxes, blister cards, and clamshells
Tray design, materials specs and die lines
Pallet style and compliance documentation
Until next time!