Impact of Packaging on Logistics

7/28/2019 Impact of Packaging on Logistics

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IMPACT OF PACKAGING ON LOGISTICS

Name: Raju Prasad

Department: MPSM(TLM)

Roll no.:107/MPS/110095Session:2011-13


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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.


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DEFINATION OF PACKAGING: Packaging has been defined as the

science, art & technology of enclosing

products for distribution, storage, sale, & use.


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DIFFERENT TYPES OF PACKAGING: Primary packaging is the material that first envelops

the product and holds it. This usually is the packagewhich is in direct contact with the contents.

Secondary packaging is outside the primarypackaging, perhaps used to group primary packagestogether.

Tertiary packaging is used for bulk handling,warehouse storage & transport shipping. The mostcommon form is a palletized unit load that packstightly into containers.


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MATERIALS USED FOR PACKAGING :

Plastic

Metal

GlassCardboard


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FUNCTIONS OF PACKAGING:

Packaging is associated with three large

functions:

Marketing

Environmental

Logistics


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FUNCTIONS OF PACKAGING(CONTD.)

More specially, packing performs the followingfunctions:

Containment: products must be contained

before they move from one place to anotherto protect them.

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


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FUNCTIONS OF PACKAGING(CONTD.) Information transmission: packages & labels

communicate through the information given on them.

Unitization: to unitize primary packages intosecondary packages, secondary packages areunitized into a container that is loaded with pallets.This decreases the number of times a product mustbe handled.

Physical protection: the package protects theenclosed object from physical items, shock,compression & temperature.


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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 whilstproviding an acceptable service to the

customer.


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COMPONENTS OF LOGISTICS:

The main components of logistics are:

Transportation

Warehousing & material handing Inventory

Packaging

InformationCustomer service


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IMPACT OF PACKAGING ON LOGISTICSCOMPONENTS:Packaging and transportation:

Logistical activity that is greatly affected by

packaging is transportation becausepackaging 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 arehighly influenced by products physicalcharacteristics.


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PACKAGING AND WAREHOUSE & MATERIALHANDLING: Packaging has an important impact on the

material handling function. Good packaging canhave a positive impact on material handling.Poor packaging with oversized packages can

inhibit the material handling operations. If thepackage is not designed properly the logisticalefficiency will decline. The ability to display andprovide information is an important advantage of

packaging. Information can relieve the materialhandling operation because the information onthe package allows warehouse personnel tolocate and quantify the products easily.


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PACKAGING AND WAREHOUSE & MATERIALHANDLING(CONTD.) The size aspect influences the utilization of

warehouse. Size also affects the quantity of productsthat can be moved at the same time. The level ofprotection that the package provides enables different

transport alternatives. A package must not onlyprotect the product from physical damage but also berequired to support weight of the products stackedabove it.

Efficient material handling can improve a warehouse

ability to provide customer service in terms of quickand accurate response to customer demands.Efficient material handling could also reduce cost byconsuming fewer resources such as forklifts time,manual labor and warehouse space.


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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 solutionmight be good for a firm but the customer

might not be able to handle the package

easily and conveniently, so customer serviceis lost. This adds to the interrelationship

between packaging and logistics

components.


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PACKAGING AND INFORMATION: Packaging communicates how to use, transport,

recycle or dispose of the package or product. Italso gives information about the productweather it is medicine, food, and chemical

products. Some packages and labels also areused for track and trace purposes. Thepackaging and labels can be usedby marketers to encourage potential buyers to

purchase the product. Package graphicdesign and physical design have been importantand constantly evolving phenomenon for severaldecades. Marketingcommunications and graphic design are applied

to the surface of the package.


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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 andincreases product availability for sales. It also

increases product value and carrying cost.


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PACKAGING COST TRADE- OFFS WITH LOGISTICSACTIVITIES

Logistics activity Trade-offs

Transportation

Increased package information Decreases shipment delays;

Increased package protection Decreases damage and theft in transit, but increases packageweight 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 .


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PACKAGING COST TRADE- OFFS WITH LOGISTICSACTIVITIES(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..


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CONCLUSION:

Packaging is an important concern that is

closely tied to logistics efficiency &

effectiveness. An appropriate packaging

increases service, decreases cost, & makesfor better handling. Good packaging can

have a positive impact on layout, design, &

overall productivity.

Impact of Packaging on Logistics

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