DLM Final Presentation Nitesh

8/3/2019 DLM Final Presentation Nitesh

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Amity Business School


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Consumer Packaging vs. Industrial

Packaging Final package design is most often based on manufacturing and

marketing considerations at the neglect of logisticalrequirements.

Consumer packaging design focuses on customer convenience,market appeal, retail shelf utilization, and product protection.

In general, ideal consumer packaging (e.g., large containers thatincrease consumer visibility) makes very poor logisticalpackaging.

The proper package design should be based on acomprehensive assessment of logistical packaging requirements.


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Industrial Packaging (Logistics Emphasis)

Barrels

Individual products or parts are normally grouped intocartons, bags, bins, or barrels for handling efficiency.

BinBags of coalCarton

These containers are used to group individual productsand are referred to as master cartons.
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Industrial Packaging (Logistics Emphasis)..

When master cartons are grouped into larger units forhandling, the combination is referred to ascontainerization or unitization.

The master carton and the unitized load provide thebasic handling unit in the logistics channel.

The weight, cube, and fragility of the master carton in anoverall product line determine transportation andmaterial-handling requirements.

If the package is not designed for efficient logisticalprocessing, overall system performance will suffer.


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Retail sale quantity should not be the prime determinantof master carton size.

For example, fruit juices typically sold in units of sixindividual containers is normally packed in mastercartons (cases) in quantities of twenty-four units.

The prime packaging objective is to design for operationwith a limited assortment of standard master cartons.


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Naturally, few organizations can reduce

their master carton requirements to asingle size.

When master cartons of more than onesize are required, extreme care should betaken to arrive at an assortment of

compatible units.


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Figure illustrates such a concept utilizing fourstandard sizes.

The sizes of the four master cartons result in modular

compatibility.


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Of course, logistical considerations cannot fully dominatepackaging design.

The ideal package for material handling andtransportation would be a perfect cube having equallength, depth, and width with maximum possible density.

Seldom will such a package exist.

The important point is that logistical requirements shouldbe evaluated along with manufacturing, marketing, andproduct design considerations when standardizingmaster cartons.


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Degree of Protection A critical issue confronted in package design is to

determine the degree of protection required to cope withthe anticipated physical environments.

The package design and material should combine toachieve the desired level of protection without incurringthe expense of overprotection.

It is also possible to design a package that has thecorrect material content but does not provide thenecessary protection.


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Testing the package The determination of final package design requires

considerable testing to ensure that specifications aresatisfied.

Such tests can be conducted in a laboratory.

During past decade the process of package design andmaterial selection has become far more scientific.

Laboratory analysis has become the most reliablemeans of evaluation because of advancements in testingequipment and measurement techniques.


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Damage Protection A major function of the master carton is to protect products

from damage while moving and being stored.

The crucial question is the desired degree of productprotection.

The determining factors are the value and fragility of theproduct:

the higher the value, the greater the economic justificationfor nearly absolute protection.

If a product is fragile and has high value, then the cost ofabsolute protection can be significant.


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Damage Protection

Product fragility can be measured by product/package testing

utilizing shock and vibration equipment.

The test result allows a predetermined level of productcushion to be built into the package to provide protectionwhile in the logistical system.

If packaging requirements and cost are prohibitive, alternative

product designs can be evaluated utilizing the same testingequipment.

The end result is the determination of the exact packagingrequired to protect the product.


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Damage Protection

Package damage results from the transportation,storage, and handling utilized.

If privately owned and operated transportation is used,the product will move to its destination in a relativelycontrolled environment.

On the other hand, if common carriers are utilized, theproduct enters a non-controlled environment.

The less control a firm has over the physicalenvironment, the greater the packaging precautionsrequired to prevent damage.


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Causes of Damage During the logistical process, the product can experience a

number of situations that can cause damage.

The four most common causes are:

vibration, impact, puncture, and compression.

Within the logistical system, combinations of these forms ofdamage can be experienced whenever a package is in transit

or being handled.

In addition, stacking failure can result in damage while theproduct is in storage.


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Distribution of Computers The standard distribution practice for computers provides an

example for damage protection.

Because the basic product is of high value and extremefragility, a substantial investment in packaging would berequired to perform physical distribution using normal carrierservice.

Consequently, computers are usually distributed byspecialized household movers.

The equipment and handling procedures employed byhousehold moving specialists are highly oriented to damage

prevention.

Example


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Outside Factors Outside elements such as temperature, humidity, and

foreign matters may cause potential damage.

For the most part, these environmental factors arebeyond the control of logistical management.

However, the protective package must be designed to

cope with the range of possible adversity during transit.


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Outside Factors

To illustrate, it is not unusual for a package to be

subjected to

snow and below freezing temperatures during loading,

to be exposed to rain at an intermediate transfer point, to arrive at a hot and humid destination.

The problem in evaluating the environment is

determining in advance how the contents of the packagewill react with respect to these various elements.


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Handling Efficiency Logistical productivity is the ratio of the output of a

logistical activity (time for loading a truck) to the input(labor and forklift time required).

Most logistical productivity studies center aroundmaking the input work harder.

Packaging initiatives, however, increase the output.

Almost all logistical activity outputs can be described interms of packages, such as number of cartons loadedper hour into a trailer, number of cartons picked perhour in a warehouse, etc.


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Product Characteristics Packing products in certain configurations may help in

increasing logistical activity output.

For example, reducing package size can improve cubeutilization.

This can be accomplished by concentrating products

(e.g. orange juice) or eliminating air inside packages byshipping items unassembled.


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Product Characteristics

In most cases Dunn age materials (like polystyrene foam

peanuts) can be minimized simply by reducing box size.

Many of the Indian retailers of unassembled furniture,emphasizes cube minimization to the point that it shipspillows vacuum-packed.

They use a cube minimization packaging strategy tosuccessfully compete in the Western Companies eventhough the company ships furniture all the way fromIndia.


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Product Characteristics

Cube minimization is most important for lightweightproducts (such as assembled lawn furniture) that "cube out"a transport vehicle far below its weight limit.

On the other hand, heavy products (like liquid in glassbottles) "weigh out" a transport vehicle before it is filled.

Weight can be reduced by changing the product or the

package.

For example, substituting plastic bottles for glasssignificantly increases the number of bottles that can betransported in a trailer.


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Unitization Unitization describes the physical grouping of master

cartons into one restrained load for material handling.

The concept of containerization includes all forms ofunitization, from taping two master cartons together tothe use of specialized transportation equipment.

All types of containerization have the basic objective ofincreasing material-handling efficiency.


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Containers are steel or aluminum boxes that can bemoved on trucks, rail road cars and ships and can

carry different kinds of merchandise.

.


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The container in the last three or four decades has become

the core of a highly automated system that enablesmovement of goods from anywhere to anywhere at low

costs and with minimum complications on the way.

The container is at the core of a technical system which

includes the modern container port with its forest of

cranes, large container-stacking yards and intermodal

freight yards permitting seamless transport from point topoint.


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Many Asian countries - Japan, Taiwan, Hong Kong,

Singapore, Korea and later China, took a strategic view of

containerization.

They are invested in the system of container parts,

containerships and associated trade-enhancing

organizational improvements - resulting container

systems gave these countries cheap access to the US andEuropean Markets

Source: IMRBInternational


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Amity Business SchoolBenefits of

Unitization/Containerization Reduces damage in handling

Reduces pilferage

Reduces protective packaging requirements

Provides greater protection from environment

Provides a shipment unit that can be used many timesrepeatedly.


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Communication The third important logistical packaging function is

communication, or information transfer.

This function is increasingly critical to contentidentification, tracking, and handling as they becomemore powerful and necessary to total channel success.

The most obvious communications role is identifyingpackage contents for all channel members.


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Communication

Typical information includes manufacturer, product, type

of container (can versus bottle), count, and UniversalProduct Code (UPC) number.

Visibility is the major consideration and material handlersshould be able to see the label from reasonabledistances in all directions.

The only exception is for high-value products, whichoften have small labels to minimize the temptation oftheft.


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DLM Final Presentation Nitesh