Cost, compliance and complexity: how the shifting landscape is impacting packaging
Packaging is becoming an increasingly complex part of the automotive supply chain, as cost pressures, environmental regulations and changing operational requirements force businesses to reconsider how packaging is designed, sourced and managed.
During the first part of Automotive Logistics’ packaging livestream, Dan Hankinson, director of Mopar global product regulatory compliance, transformation and governance at Stellantis (sharing his own perspective, not the views of Stellantis) and Andy Winebloom, senior manager at Toyota Motor Europe discussed how companies can balance competing demands, from collecting detailed materials data to making packaging decisions earlier in vehicle programmes.
Packaging no longer an afterthought
Toyota's Winebloom acknowledged that historically, packaging has only really been considered as an afterthought in automotive manufacturing and logistics – often seen as a burden and a necessary but unwanted expense. After plant equipment, he noted, packaging is the second-biggest expense in a vehicle project.
But now, with OEMs facing significant pressure to reduce cost and increase profitability, packaging departments need to be involved much earlier in projects in order to contribute to cost reduction.
On top of this, factors such as tightening regulation, increased factory automation and the need to transport dangerous goods like litium-ion batteries are adding several layers of complexity to the packaging process.
"All those things are making our job so much more complex, but vital to contribute to product cost as well," said Winebloom.
Stellantis' Hankinson agreed, noting that the job description in packaging has "changed dramatically".
Balancing cost and compliance
Hankinson explained that while the primary focus of service parts packaging has traditionally been to deliver components undamaged using the least amount of material and at the lowest possible cost, companies must now also consider whether packaging can be recycled in the markets where it is used.
Recyclability varies by region, meaning a material that is suitable in one market may not be in another. Companies must therefore factor in local recovery infrastructure and the costs associated with collecting and recycling packaging when selecting materials.
These considerations are becoming increasingly important as extended producer responsibility (EPR) schemes shift the financial burden of packaging recovery and recycling towards the companies placing it on the market. As Hankinson explained, these costs can cover a substantial proportion of the wider recycling system, from from providing collection bins and collecting packaging waste to transporting it and processing it for recycling.
As a result, the cheapest material to purchase might not necessarily be the cheapest option overall, with end-of-life costs increasingly influencing total landed cost.
Preparing for evolving packaging regulations
While the direction of travel for packaging regulation is clear, Winebloom noted that some specific requirements under the EU Packaging and Packaging Waste Regulation (PPWR), including targets, timelines and measurement methods, remain subject to uncertainty.
However, companies cannot afford to wait until every detail is confirmed before adapting their packaging. Toyota is already working with packaging manufacturers and material suppliers to modify existing materials, develop new manufacturing techniques and explore alternatives that will support greater recyclability and the use of recycled content.
One challenge is maintaining packaging strength and durability as the proportion of recycled material increases. Winebloom explained that incorporating more recycled content can weaken materials, potentially requiring changes to moulds and manufacturing processes to meet future requirements.
Designing for recycling is also creating new considerations around how packaging materials are combined and whether they can be separated at end of life. Alongside this, packaging reduction requirements mean companies must consider the amount of material used relative to the size of the product being transported.
Building the right data foundation
As regulatory requirements become more detailed and fragmented across markets, Hankinson stressed that companies need reliable data about the materials used in their packaging to determine which rules apply and calculate the associated fees.
Where businesses might previously have needed little more than container dimensions and confirmation that a part arrived undamaged, they now need information comparable to a bill of materials. This includes identifying specific material types rather than relying on broad categories.
Hankinson cited wax-coated corrugated cardboard as an example, explaining that it can attract significantly higher fees than standard corrugated cardboard under certain US schemes. Companies therefore need to distinguish between materials that might once have been recorded under the same category.
More detailed packaging requirements also risk increasing the number of packaging stock-keeping units (SKUs) companies need to manage, adding to the complexity of maintaining accurate data.
Establishing this information provides a foundation for assessing compliance across different markets and making informed decisions about material selection, packaging design and cost.
Watch the full livestream on demand here and don't forget to register for Automotive Logistics' next livestream – 2026 in review and trends for 2027 – on December 2, 2026.
