Distribution Management - Packaging

DISTRIBUTION MANAGEMENT - PACKAGING INTRODUCTION  Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells.   HISTORY    The first packages used the natural materials available at the time: Basket of reeds, wineskins (Bota bags), wooden boxes, pottery vases, ceramic amphorae, wooden barrels, woven bags, etc. Processed materials were used to form packages as they were developed: for example, early glass and bronze vessels. Iron and tin plated steel were used to make cans in the early 19th century.   Paperboard cartons and corrugated fiberboard boxes were first introduced in the late 19th century. Packaging advancements in the early 20th century included Bakelite closures on bottles, transparent cellophane overwraps and panels on cartons, increased processing efficiency and improved food safety. As additional materials such as aluminium and several types of plastic were developed, they were incorporated into packages to improve performance and functionality. SO WHAT HAS THE PACKAGING INDUSTRY DONE?        Developed a fantastic range of new products Enabled a huge change in the way we shop Facilitated the reduction in food waste in the supply chain to 3% Light weighted packaging across the board Achieved the decoupling of GDP growth from the increase in packaging used Given consumers product protection, hygiene, convenience and pack information Provided the platform for product branding and identification PURPOSES OF PACKAGING 1. 2. 3. 4. 5. 6. 7. 8. Physical protection Barrier protection Containment or agglomeration Information transmission Marketing Security Convenience Portion control FUNCTIONS OF PACKAGING     Correct Packaging for export is obviously the protection of the goods from the hazards of international shipping by ocean or air. To Facilitate the handling of goods while they are in transit, a well designed package will allow the stevedores, the shipping line, and the trucking companies to handle it without difficulties. Packaging as to be simple enough to be opened without damaging the goods . To a great extent , the packaging used by a firm should also reflect the image it is trying to project onto its customers. OBJECTIVES OF PACKAGING  Protecting the goods in transit from breakage( these perils represent roughly 43% of all claims made by the shippers to their insurance companies) Protecting the goods from water damage(15%). Protecting the goods from theft and pilferage(21%).   3 TYPES OF PACKAGING  Primary – the container that actually holds the product  can, bottle, tube, carton…  Secondary – outer wrappings that help store, transport, inform, display, and protect  decorated outer carton, gift wrapping…  Tertiary – packaging for storage, transportation  corrugated boxes, pallets, shrink wrap… PACKAGING COST           Material cost Storage and handling cost of empty packages Packaging operation costs Storage of filled packages Transportation cost of filled packages Loss and Damage cost Insurance cost Effect of packages on sales Obsolescence Cost Package developmental cost PACKAGING SYMBOLS  Special codes and symbols are used for packaging of different kind of goods. These symbols help to identify what kind of goods are exported or imported and which category of goods they belong to.  Keep away from water Centre of gravity Clamp as indicated Do not clamp as indicated Fragile Do not use hand hooks This way up Keep away from sunlight  Shipments of hazardous materials or dangerous goods have special information and symbols (labels, plackards, etc) as required by UN, country, and specific carrier requirements. Two examples are below: REQUIREMENTS OF PACKAGING MACHINES          Technical capabilities Labour requirements Worker safety Maintainability Serviceability Ability to integrate into the packaging line Capital cost Floor space Flexibility (change-over, materials, etc)        Energy usage Quality of outgoing packages Qualifications (for food, pharmaceuticals, etc.) Efficiency Productivity Return on investment Reliability IMPORTANCE OF PACKAGING         Attract customers Not neglecting the quality Converting first time customers into loyal customers Make a product convenient to use Create difference in marketing strategy Reach ability of product without damage Key role in brand promotion and management Involves appeal and information ROLE OF PACKAGING IN MARKETING       Serves as protector for the product Innovative but practical packaging Final choice of potential buyer Constant research and development should be done for packaging Creates a point of differentiation Protecting the environment ROLE OF PACKAGING IN SUPPLY CHAIN MANAGEMENT  Packaging is an integral part of the goods supply chain. It protects goods from damage, allows efficient distribution, informs the consumer and helps to promote goods in a competitive marketplace. The automotive industry is also considered a driving force in packaging development.      The retail environment and automotive environment that excellence cannot be achieved in packaging selection if the designer or design team does not know the following: what is required to effectively and efficiently distribute the products. what products require to survive the supply chain. The designer/the design team also needs to have knowledge of logistics, sales methods and consumer demands as well as manufacturing demands. THE WASTE HIERARCHY The traditional “three R’s” of reduce, reuse, and recycle are part of a waste hierarchy which may be considered in product and package development.  Prevention  Minimization  Reuse  Recycling  Energy recovery  Disposal PACKAGING DEVELOPMENT CONSIDERATIONS    Package design and development are often thought of as an integral part of the new product development process. Package design starts with the identification of all the requirements: structural design, marketing, shelf life, quality assurance, logistics, legal, regulatory, graphic design, end-use, environmental, etc. Package development involves considerations for sustainability, environmental responsibility, and applicable environmental and recycling regulations. THANK YOU!!!