IMPACT OF PACKAGING ON LOGISTICS

Name: Raju Prasad Department: MPSM(TLM) Roll no.:107/MPS/110095 Session:2011-13

OBJECTIVES AND AIMS OF DISSERTATION:

To understand the function of the different types of packaging. To assess the impact of packaging on different logistics functions.

DEFINATION OF PACKAGING:

Packaging has been defined as the science, art & technology of enclosing products for distribution, storage, sale, & use.

DIFFERENT TYPES OF PACKAGING:

Primary packaging is the material that first envelops the product and holds it. This usually is the package which is in direct contact with the contents. Secondary packaging is outside the primary packaging, perhaps used to group primary packages together. Tertiary packaging is used for bulk handling, warehouse storage & transport shipping. The most common form is a palletized unit load that packs tightly into containers.

MATERIALS USED FOR PACKAGING :

Plastic Metal Glass Cardboard

FUNCTIONS OF PACKAGING:
Packaging is associated with three large functions: Marketing Environmental Logistics

FUNCTIONS OF PACKAGING(CONTD.)
More specially, packing performs the following functions: Containment: products must be contained before they move from one place to another to protect them.

Convenience: packages can have features that add convenience in distribution, handling & sale.

FUNCTIONS OF PACKAGING(CONTD.)

Information transmission: packages & labels communicate through the information given on them. Unitization: to unitize primary packages into secondary packages, secondary packages are unitized into a container that is loaded with pallets. This decreases the number of times a product must be handled. Physical protection: the package protects the enclosed object from physical items, shock, compression & temperature.

DEFINITION OF LOGISTICS:

Logistics can be defined as the efficient transfer of goods from the source of supply through the place of manufacture to the point of consumption in a cost- effective way whilst providing an acceptable service to the customer.

COMPONENTS OF LOGISTICS:
The main components of logistics are: Transportation Warehousing & material handing Inventory Packaging Information Customer service

IMPACT OF PACKAGING ON LOGISTICS COMPONENTS: Packaging and transportation:

Logistical activity that is greatly affected by packaging is transportation because packaging affects the volume of a product. The most important factors that affect transportation cost are volume, stow ability, and handling of the product because they are highly influenced by products physical characteristics.

PACKAGING AND WAREHOUSE & MATERIAL HANDLING:

Packaging has an important impact on the material handling function. Good packaging can have a positive impact on material handling. Poor packaging with oversized packages can inhibit the material handling operations. If the package is not designed properly the logistical efficiency will decline. The ability to display and provide information is an important advantage of packaging. Information can relieve the material handling operation because the information on the package allows warehouse personnel to locate and quantify the products easily.

PACKAGING AND WAREHOUSE & MATERIAL HANDLING(CONTD.)

The size aspect influences the utilization of warehouse. Size also affects the quantity of products that can be moved at the same time. The level of protection that the package provides enables different transport alternatives. A package must not only protect the product from physical damage but also be required to support weight of the products stacked above it. Efficient material handling can improve a warehouse ability to provide customer service in terms of quick and accurate response to customer demands. Efficient material handling could also reduce cost by consuming fewer resources such as forklifts time, manual labor and warehouse space.

PACKAGING AND CUSTOMER SERVICE:

Customer service is a logistics component that is also affected by packaging. Packaging is an important factor in providing customer service. For example, a packing solution might be good for a firm but the customer might not be able to handle the package easily and conveniently, so customer service is lost. This adds to the interrelationship between packaging and logistics components.

PACKAGING AND INFORMATION:

Packaging communicates how to use, transport, recycle or dispose of the package or product. It also gives information about the product weather it is medicine, food, and chemical products. Some packages and labels also are used for track and trace purposes. The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package graphic design and physical design have been important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package.

PACKAGING AND INVENTORY:

Packaging increases the protection of the inventory during transit from damages from shock occurs during transit. It also prevents the inventory in stock from theft, damage and increases product availability for sales. It also increases product value and carrying cost.

PACKAGING COST TRADE- OFFS WITH LOGISTICS ACTIVITIES

Logistics activity Transportation
Increased package information Decreases shipment delays;

Trade-offs

Increased package protection

Decreases damage and theft in transit, but increases package

weight and transport costs.

Increased standardization

Decreases handling costs, vehicle waiting time for loading and unloading; increases modal choices for shipper .

Inventory
Increased product protection Decreased theft, damage, insurance; increases product availability (sales); increases product value .

PACKAGING COST TRADE- OFFS WITH LOGISTICS ACTIVITIES(CONTD.)

Warehousing

Increased package information

Decreases order filling time, labor cost.

Increased product protection

Decrease in product damage .

Increased standardization

Decreases material handling equipment costs.

Communications

Increased package information

Increases potential customer & hence sales. .

CONCLUSION:

Packaging is an important concern that is closely tied to logistics efficiency & effectiveness. An appropriate packaging increases service, decreases cost, & makes for better handling. Good packaging can have a positive impact on layout, design, & overall productivity.