BLM Chap 12 Slides - Edited[1]

Chapter 11: Strategic Leadership

Chapter 12: Packaging and containerisation - outline• Packaging has been in existence ever since people started storing and transporting goods.

• The modern supply chain cannot function without some form of packaging or containerisation.

• Packaging has to contribute to efficiency and effectiveness in the supply chain.

• Technology can play a role in further enhancing the value of packaging and containerisation.

• The effect of packaging on the environment must be taken into account and minimised where possible.

• Packaging decisions should be systemic to ensure that an integrated logistics and supply chain approach is followed.


Learning outcomes

While studying this chapter, make sure that you focus on:

• the logistics functions of packaging;

• the benefits of using packaging;

• the cost and service trade-offs of using packaging;

• factors involved in the development of packaging;

• similarities and differences between containers and unit loading devices (ULDs);

• the integration of technology with packaging; and

• the benefits of technology and packaging integration.


Definition and functions of packaging

Definition: see p. 267• A combination of art, technology and material

Functions of packaging:• Apportion

• Contain

• Protect/serve

• Unitise

• Transport

• Inform/sell


Definition and functions of packaging (continued)

Levels of packaging:• Primary

• Secondary

• Unit load

• Distribution

Application:• What level of packaging is involved in a box of cereal?

• What level of packaging is involved in a case of beer?


Benefits of packaging

Benefits vary according to type of packaging and can include:• Preservation

• Information and instruction

• Convenience

• Innovation

• Waste minimisation

• Hygiene and safety


Role of packaging in logistics

Warehousing and materials handling• Storage and handling

• Space utilisation

Transport• Air: minimise size and weight, but withstand pressures

• Road and rail: stackability and maximised space utilisation

• Ocean: harsh environmental conditions

Trade-offs

See Table 12.1 (p. 271)


Packaging and marketing

Packaging plays a role in the four ‘P’s of marketing:• Product

• Place

• Price

• Promotion

POP packaging:• Logistics function secondary to marketing function

• Conveys impressions and ideas through packaging

(differentiation)


Development of packaging solutions

Various factors influence packaging design, including:• Consumer requirements

• Physical form and nature of packaging

• Logistics requirements

Packaging materials:• Types: wood; paper/cardboard; glass; metal; plastic

• Choice is influenced by strengths of different materials

• Rising raw material costs and environmental concerns are driving packaging industry towards greater efficiency


Development of packaging solutions (continued)

Palletisation• Designed to facilitate storage and transportation

• Pallet types – see p. 273

• Pallet pattern design important, but often neglected

Bulk-packaging systems• Containment of large volumes

• Various materials can be used depending on product and supply chain requirements

• Most commonly used systems: bags; corrugated cardboard; metal; rigid plastics; wood

• Factors to take into account during design – see p. 275


Development of packaging solutions (continued)

Cost trade-offsTotal packaging cost vs higher sales and savings elsewhere.

LegislationPlaces compliance requirements on manufacturers of both packaging and products, as well as retailers.

The environment• Use life-cycle assessment (LCA) to evaluate potential environmental impact of various packaging options.

• Reuse and recycle as much as possible.


Containerisation

• System for intermodal freight movement

• ISO containers: - Standardised size, fitting and reinforcement

- Types of containers – see pp. 277– 9

• Smart containers integrate technology to sense and report.

• ULDs are special types of airfreight containers or pallets.


Integrating technology with packaging and containerisation

Bar codes• Represent information for machine ‘reading’

• Layout types: 1-D and 2-D (stacked and matrix)

• Bar code systems: UPC & EAN

RFID• Automatic identification

• Integrated circuit / microchip and antenna

• Active vs. passive tags

Multi-technology integration


Supply chain perspective of packaging• Manage packaging as interdependent component

• Packaging design influences efficiency and effectiveness of entire supply chain

• Consider requirements of all partners in a supply chain

• Lack of conformity due to insufficient information flow

• Sub-optimisation can lead to increased costs upstream or downstream in supply chain

• Environmentally-friendly packaging requires co-operation

Documents

BLM Chap 12 Slides - Edited[1]