PACKAGING

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ADMIMS

Packaging - DFL
Serves 2 functions marketing & logistics.
For Marketing:
Provides customers with information about the product and
promotes the product through the use of color, shape, aesthetic
appeal, etc.
For Logistics: trade offs, wt/space (cost), env. Aspects (Rev L)
Function is to organize, protect, and identify products and
materials. In doing this, it takes up space and adds weight.
Industrial users of packaging strive to gain the advantages
packaging offers while minimizing the disadvantages, such as
added space and weight.
Environmental aspects of packaging are important because of
reverse logistics.
PACKAGING PERFORMS SIX LOGISTICS FUNCTIONS
1. CONTAINMENT 2. PROTECTON 3. APPORTIONMENT
4. UNITIZATION
5. CONVENIENCE 6. COMMUNICATION
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ADMIMS

Packaging D

FL (storage/MH/space _

Pkg shd be designed to provide the most efficient storage.

Good pkg interfaces well with the organizations material handling
equipment and allows efficient utilization of storage space as well as
transportation cube and weight constraints.
Benefits of good packaging are
Lighter packaging saves transportation costs.
Careful planning of packaging size/cube may allow better utilization of
warehousing and transportation
More protective packaging may reduce damage and requirements for
special handling
More environmentally conscious packaging may save disposal costs
and improve the companys image
Use of reusable containers provides cost savings as well as
environmental benefits through the reduction of waste products.
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Good package design is influenced by:

1. Standardization
2. Pricing (cost)
3. Product or package adaptability/ stability (pharma)
4. Level of protection required
5. Handling ability
6. Product packability, and
7. Reusability and recyclability

With the growth in automation and computerization of

warehousing, the ability to utilize high storage space
and convey information are key.
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Packaging Cost Trade-offs with other logistics activities

LOGISTICS ACTIVITIES

Transportation
Increased packaging
information

Dec, shipment delays, inc.

pkg info, dec. tracking of
lost shipment.

Increased package
protection

Dec. damage and theft in

transit, but incr. pkg wt
and transport cost.

Increased
standardization

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TRADE OFFS

Decr. Handling costs,

vehicle waiting time for
loading & unloading, incr.
standardization increases
modal choices for shipper
and decr. Need for
specialized transport
equipment.
ADMIMS

Logistics Activities

Trade Offs

Inventory
Increased product
protection
Warehousing
Increased package
information
Incrd. Product protection
Increased standardization
Communication
Incrd. Package information
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Decr. Theft, damage,

insurance, incr. product a/v
(sales), incr. product value
& carrying costs.
Decreases order filling time,
labor cost.
Incr.
cubic
utilization
(stacking), but decr. cube
utilization by increasing the
size
of
the
product
dimensions.
Decr. Material handling
equipment costs.
Decr. Other commns. About
the telephone calls to track
down lost shipments.

ADMIMS

Misc. Points: Log /Distbn /Transpn Packaging Variables

FACTORS TO CONSIDER
Cost of poor packaging / preservation / Quality / damage protection /
ergonomics
Size affects pallet size / stacking (wide high)
Protection afforded
MH equipment
Stacking height
Space utilization
Info. Position imp. To Log people (WH weight what can be
placed on top
Transportation may contribute nothing to product value (addon) but its influence on logistics / distribution is considerable.
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 Operational areas coordination of packaging concerns

ESPECIALLY MARKETING / PRODUCTION & LEGAL

Marketing :/ Sales
A method of selling / provide product information / What position it
lies / info. On product handling
Acts as a silent salesperson (color, design, functionality)
Production:
Cost of placing goods into the packaging (size, shape & type) labor
efficiency/cost
Legal:
Info on pkg compliance issues env. Pkg R&R.- identification
issues

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Misc.

Some techniques used:

Color coding, universal product codes, heat transfers, bar coding,
computer readable labels.
--Material Handling:
Provide max. ease of handling Wt v transfer into & out.
Physical dimension affects WH layout, movement of tr. Vehicle,
pallelt sizes,
Packaging strength and shape.
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ADMIMS

 Protect product (Robust Design)

Can be hit with a forklift truck

Dropping from a conveyor
From contamination (contact with other goods, water damage,
temperature changes, pilferage)
Shocks in handling and transportation
Even weight distribution within packaging to facilitate material and
auto MH
Changes in FED & State Regulations (esp Food & Drugs)
Cos. Must design pkg to reduce consumer anxieties about
tampering
INTERIOR INTERNAL / EXTERIOR EXTERNAL PACKAGING

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