With space tight and demand high, peak season presents real challenges for 3PLs. See how on-demand packaging can turn space limitations into real business wins.
Warehouse space is tightening just as peak season demands intensify. U.S. industrial vacancy has climbed to 7.1% (the highest in over a decade) while rents continue to rise, averaging $10.12 per square foot. At the same time, parcel volumes keep growing, with next-day delivery options accounting for over 40% of U.S. parcel shipments and same-day projected to expand more than 6% annually through 2030.
For 3PLs, the consequences are clear: more customer inventory stored onsite and more packaging materials occupying valuable real estate. When staging zones and aisles get crowded, errors and delays follow. Throughput slows, labor costs rise and customer satisfaction drops. Expanding facilities isn’t always an option, so operators must find ways to stretch their existing square footage.
The advantages of on-demand packaging systems that do more with less
Floor space doesn’t have to be the constraint that limits throughput. On-demand packaging systems are machines that produce packaging materials at the moment they are needed, without taking up an immense amount of warehouse space for material refills. By rethinking packaging systems as strategic levers, 3PLs can unlock hidden capacity and run peak operations more efficiently.
1. Modular systems that flex with demand
Fixed pack stations eat up space and limit adaptability. Modular, on-demand packaging systems can be reconfigured by season, volume or SKU type. For example, the Pregis Easypack® on-demand paper systems on wheels handle a wide range of product dimensions without requiring duplicate equipment or additional work stations.
2. Integration that reduces equipment count
Automated bagging systems that open, seal and print labels directly on the poly bag or paper mailer consolidate multiple functions. Instead of separate printers, stations and conveyors, one compact system does the work. Operators simply insert the product, hit the button and the system handles the rest, reducing labor and freeing floor space.
3. Compact footprints and vertical design
On-demand packaging equipment is designed with smaller horizontal footprints and vertical utilization in mind. This ensures more open floor space for product flow and safer, less congested work areas.
4. Flexibility across industries
For 3PLs, the mix of clients is always shifting. It could be consumer goods today, then electronics or retail tomorrow. On-demand systems accommodate different verticals without requiring major layout changes, helping operators take on new contracts without sacrificing space efficiency.
Seeing the impacts in efficiency, cost and customer experience
The benefits of packaging optimization extend well beyond the floor plan, unlocking new levels of performance across the business.
- Throughput gains without new construction: Reclaim aisle and staging space, eliminate bottlenecks and move more volume through existing facilities.
- Lower total cost of operations: Leaner packaging inventories, fewer machines, and more efficient labor drive down cost per pack.
- Better customer outcomes: Fewer delays, fewer errors and stronger protection improve customer satisfaction and reduce costly returns.
- Scalable flexibility: on-demand systems flex with seasonal peaks and changing SKU profiles, enabling operators to serve diverse industries without retooling.
Turning constraint into opportunity
Space will remain one of the top challenges for 3PLs during peak season. But on-demand packaging systems change the game by transforming limited square footage into an opportunity to run smarter, faster and leaner.
With peak season underway, this might not be the right moment to make big changes. But it’s the ideal time to take note of challenges that arise, map out where space is tightest and consider how on-demand solutions could streamline flow and unlock capacity.
Peak season doesn’t have to be defined by space constraints. With the right packaging strategy, 3PLs can scale efficiently, protect margins and deliver for customers without expanding their footprint.
