Packaging and Materials Handling
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Functions of Packaging
 Marketing
»
»
Information
Promotion
 Logistics
» Containment
» Protection
» Apportionment
» Unitization
» Convenience
» Communication
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Benefits of Good Packaging
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Lighter packaging may save transportation costs
Careful planning of packaging size/cube may allow
better space utilization
More protective packaging may reduce damage and
requirements for special handling
Environmentally conscious packaging may save
disposal costs
Returnable containers provide cost savings and
environmental benefits
Interfaces well with material handling equipment
Factors Governing Good Package
Design
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Pricing-cost
Protection level
Standardization
Channel of distribution
Handling ability
Reusability-recyclability
Product attributes
Conveying info on
Cube utilization
Shelf ready packaging
 To transport the product from warehouse to
shelf as effectively as possible giving real
benefits to the retailer
 Increased sales through better brand visibility
 Improved in store labour efficiencies
1.
Tertiary – this form of packaging
is there to aid handling of large,
consolidated smaller packaging.
(pallets, containers, shipping
cartons)
2. Secondary – an outer box that
encompasses item- box around
toothpaste tube
3. Primary – contains the actual
product. Often the pack that the
consumer will take home.
Design for supply chains
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Tesco UK-temperature sensitive packages
IKEA-flat packaging
Sustainable Packaging
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Using resources in a way that enables
renewal and replacement by comparable
resources
Sustainable Packaging
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Reducing packaging and maximizing the use of renewable or
reusable materials
Using lighter weight, less toxic or other materials which reduce
negative end-of-life impacts
Demonstrating compliance with regulations regarding
hazardous chemicals and packaging and waste legislation
Optimizing material usage including product-to-package ratios
Using materials which are from certified, responsibly managed
forests
Meeting criteria for performance and cost (e.g., minimize
product damage during transit)
Reducing the flow of solid waste to landfill
Reducing the costs associated with packaging (i.e., logistics,
storage, disposal, etc.)
Reducing CO2 emissions through reduced shipping loads
Coca Cola’s packaging strategy
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just in 2009 avoided the use of approximately 85,000 metric
tons of primary packaging, cost savings of more than $100
million.
Dell Computer
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committed in 2008 to reduce cost by $8 million and quantity by
20 million pounds of packaging by 2012 centered around three
themes (cube, content, curb):
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Shrinking packaging volume by 10 percent (cube)
Increasing to 40 percent, the amount of recycled content in packaging
(content)
Increasing to 75 percent, the amount of material in packaging to be
curbside recyclable (curb).
sustainably sourced bamboo packaging certified by the Forest
Stewardship Council (eliminating over 8.7 million pounds of
packaging)
Wal-Mart
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took a huge step in 2007-supplier conformance around
packaging.
design and innovative product activity by thousands of key
suppliers in response to the mega-retailers challenge.
By reducing packaging in the Wal-Mart supply chain by just five
(5) percent by 2013
– prevent 660,000 tons of carbon dioxide from entering the
atmosphere,
– keeping 200,000 trucks off the road every year
– save the company more than $3.4 billion
A case from Wal-Mart’s supplier:
General Mills
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They straightened its noodles, meaning the product could lie
flatter in the box( cut the number of unique pasta shapes in half
and increased the density of the pasta shapes) :
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reduced the size of Hamburger Helper packages by 20 percent
while keeping the same amount of product
saved nearly 900,000 pounds of paper fiber annually.
reduced greenhouse gas emissions by 11 percent,
took 500 trucks off the road
increased the amount of product Wal-Mart shelves by 20
percent.
Smart packaging
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A conventional package made smart by an RFID tag or label.
The functionality is electronic and the major beneficiary is the
supply chain. –smart shelves
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A package made smart by functional attributes that add benefits
to the consumers.
These may be purely design elements, or else mechanical,
chemical, electrical or electronically-driven functions that
enhance the usability or effectiveness of the product in some
way.
Examples might be time-temperature food quality labels, selfheating or self-cooling containers for beverages and foods, or
milk cartons with electronic displays indicating use-by dates.
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