Packaging in Supply Chain

Global Logistics & Supply Chain Management Report

Packaging Review Report

Executive Summary

This report provides an analysis on how packaging plays a major role in today’s supply chain. It is found that packaging are considered to be substantial in the integrated supply chain system; by using the right packaging to deliver and display the products, cost and liability can be minimized. Thus, it is important to consider practicality, durability, and aesthetics aspects before it is mass-produced.

Table of Contents

Introduction

Packages are an important and crucial part of logistics that supports the flow of contents in supply chain activities, it is known for its physical function of containing materials and providing utilities. The optimal packaging also give benefits in many ways, proper packaging means better shelf life for the materials when stored in the warehouse, which particularly important for fresh products. Moreover, standardized ad proper packaging also provides benefits by decreasing the cost of liability in manufacturing, transport, and handling which will be further explained and elaborated on this report (Engelseth, P 2005).

Discussions

Definitions and descriptions of the Purpose of Packaging in Supply Chain

Packaging in general definition is considered to be the medium of protecting and handling the products in logistics. However, the function and importance of packaging are more critical than how it seems. When the packaging is optimized, it lessens the issues on the integrated system in the supply chain logistics process and cut down the cost of a particular process in the system. It also provides the necessary information for the products that are important for handling and distribution of the products; and facilitate the transport and storage of it. Correspondingly, when getting into analyzing the purpose of the packaging in supply chain, it is important to observe it in two perspectives, the marketing and logistics outlook; the logistics purpose of packaging are protecting, organizing, and identifying the products in the process of moving the goods from the original location to the destination. Whereas from the marketing outlook, packaging serves as the purpose of informing the consumers the details of the products and increasing sales by making the products appealing to the consumers (Lambert et al. 1998, p. 330).

Different Range of Packaging Types

When discussing about the ranges and types of packaging, there are several different types that come across in mind, transport packaging, distribution packaging, or consumer packaging might be the part of it. However, it would be more convenient to divide types of packaging by categorizing them into three specific terms. The first one would be the Tertiary Packaging, which is perceived to facilitate the movement of handling, transport, and storage of the products in bulk units in order to prevent damages; palletized unit load and crates are some of the examples of tertiary packaging. The second one is the secondary packaging, where the purposes are to group the primary packaging together or as a display on the shelves in retail store. This secondary packaging can be sold to the consumers directly; cardboard packaging on the six bottles of soft drink is one of the examples. The third one is the primary packaging, this packaging is important since it relates to visual communication of the products; it is also one types of packaging that directly encloses the contents and designated for the end-user consumers in the smallest unit of distributions (Regattieri, A & Santarelli, P 2013).

Factors to Consider When Designing Packaging

It is important to consider some relevant factors when developing the design of a packaging; careful primary research and sufficient time and money should be allocated before making the final decision, which will correspondingly be beneficial in the long term. Protection, safety, convenience, label, and aesthetics are some of the factors that should be thoroughly examined before designing the package, the packaging that will be develop should be optimized to protect and preserve the contents from damage, it should also be able to contain dangerous product safely, provide convenience for consumers, provide information on what the products contain clearly and adhere to legal required standard of packaging. Lastly, the aesthetics aspect of the products is important to appeal to consumer’s preferences, reflect the brand promise, and meets the buying behavior of the target market (Bowersox et al. 2007). Therefore, when designing the packaging, all these factors are able to help on reducing the time, money, and increasing sales & profit.

The Importance of Standardization

There are different types of standardization that have to be adhered when designing the packaging of products, especially when the product is mass produced and distributed; standardization of the packaging will help to maximize the compatibility, safety, and quality of the products. When looking into the ISO ICS (International Classification for Standards) 55: Packaging and Distribution of Goods, it can be seen that there are many published standards that are designed to fulfill every aspects of packaging, ranging from safety, storage, and labeling issues; even every countries have different standards involving packaging, European and American countries are some of the examples (ISO standards tackles inaccessible Packaging Designs 2011). Additionally, following the International standardization such as ISO, will likely to help on boosting the brand image in International market; since following International standardization can be equally interpreted with qualities. Furthermore, the standardization of packaging should not be taken lightly, considering that failure to meet the required standard in safety or phytosanitary will result on loss of consumers trust, profit, and in the worst case; the products wont be able to enter the market for sales. Thereupon, the stage of designing the packaging will be one of the most crucial steps, since the decisions will have an impact on the whole supply chain and logistics process (World standards on packaging and the environment progressing 2011).