What is the purpose of repacking in supply chain management?

The purpose of repacking in supply chain management is primarily to customize bulk items for specific customer needs. This process allows businesses to take larger quantities of a product and repackage them into smaller, more manageable units tailored to the preferences or requirements of individual customers. By doing so, companies can enhance customer satisfaction by offering products in the quantities and formats that are most convenient for their target market.

Repacking also aids in addressing variations in demand where customers may prefer different packaging or sizes, thus making products more accessible and appealing. This customization can lead to increased sales and improved inventory turnover, as customers are more likely to purchase items that meet their specific needs.

While increasing storage efficiency and facilitating long-term inventory holding are important aspects of supply chain management, they are not the primary focus of repacking. Similarly, tracking supply chain costs is crucial for overall management, but it does not directly relate to the repacking process itself. Therefore, the emphasis on customizing products for customers distinctly identifies the core purpose of repacking in the context of supply chain operations.