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.
Chapter 11: Strategic Leadership
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.
Chapter 11: Strategic Leadership
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
Chapter 11: Strategic Leadership
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?
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Benefits of packaging
Benefits vary according to type of packaging and
can include:
• Preservation
• Information and instruction
• Convenience
• Innovation
• Waste minimisation
• Hygiene and safety
Chapter 11: Strategic Leadership
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)
Chapter 11: Strategic Leadership
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)
Chapter 11: Strategic Leadership
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
Chapter 11: Strategic Leadership
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
Chapter 11: Strategic Leadership
Development of packaging
solutions (continued)
Cost trade-offs
Total packaging cost vs higher sales and savings elsewhere.
Legislation
Places 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.
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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.
Chapter 11: Strategic Leadership
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
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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
Chapter 11: Strategic Leadership