Pdf on may 30, 0002, mazen saghir and others published the concept of packaging logistics find, read and cite all the research you need on researchgate. The importance of packaging in todays supply chain by tom k thursday, 08 september 2016 published in blog packaging is often an afterthought in supply chain management, which is a shame because it can have a surprisingly large impact on costs and efficiency. There can be a lot of important information that distributors need to know about your product. We now know that packaging no longer refers to a box or a carton, but rather to a coordinated system of preparing goods for safe, costeffective, and efficient movement throughout the whole supply chain that eventually leads to maximizing consumer value, sales and hence profits. Importance of food packaging global events usa europe. Packaging logistics for improving performance in supply. The colors used in your product packaging play a key role in consumer buying decisions. In recent years, packaging logistics has become a new discipline that has gained traction with the scientific and industrial community over the strategic role of logistics in boosting a companys competitive advantage.
Logistics as a business concept evolved in the 1950s with the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain. Timothy beattie, gm of pyrotec packmedia, a leading. In the war theater, logistics applied to the process of supplying equipment and supplies to troops. The sustainable improvement of supply chain management, both within each company and between companies in the chain, is one of the issues that have raised great interest among researchers, because it can be considered a source of competitive advantage christopher, 2005. International logistics is the process of planning and managing the flow of goods and products in your companys supply chain from acquisition to customer purchase, where part of the process.
Marketing, on the other hand, requires for appealing packages that can engage costumers. Transportation requirement for packaging vibration proof, water or moisture tight important factors 1. Military logistics in military logistics, logistics officers manage how and when to move resources to the places they are needed. As a result, there are many jobs in the supply chain field. The packaging system has significant implications in operation management in order to obtain successful management of operations, packaging assumes a fundamental role along the whole supply chain and has to be connected with logistics, marketing, production, and environment aspects. Logistics demands for packages that can be easily handled throughout all processes and for the consumers. Apr 03, 2012 the term, logistics, and its actions originated with the military. This definition reflects a traditional point of view that considers. Increase of packaging logistics knowledge and importance in the entire organization 3. The packaging enables the product to be stored, handled with ease, transported safely and beautifully displayed on the shelves for the purpose of sale.
It shows who you are and which consumers may want your product. The eu has some very strict guidelines when it comes to palletized goods and the quality of the pallet. It cannot escape performing the marketing function, even if a company. Packaging and material handling logistics operations and. They understand that implementing seamless logistics is a key element in keeping pace with. Getting your packaging right is critically important in exporting your goods. In military science, maintaining ones supply lines while disrupting those of the enemy is a crucialsome would say the most crucialelement of military stratagy, since an armed force without resources and.
Your company brand sends a message about your company and its values. Production usually demands for one size of packaging for all types of products to minimize time and labor costs. It examines the strategic role of packaging and its operational importance, explains the theoretical basis. Jun 21, 2010 i recently read a great business school case study by terry tremwel walton college of business, university of arkansas, dan lynch eli broad graduate school of management, michigan state university, and jim crowell walton college of business, university of arkansas called phoenician phoods, breakfast cereal manufacturer and distributor. The basic function of packaging is to protect the contents from damage, dust, dirt, leakage, pilferage, evaporation, watering, contamination and so on. May 04, 2018 logistics is a process of movement of goods across the supply chain of a company. Logistics packaging keeps all your items safe, so they arrive at their destination in perfect condition. There is slight variation in determining this volumetric weight. The emergence of logistics as an integrative activity, with the movement of raw materials from their sources of supply to the production line and ending with the movement of finished goods to the customer has gained special importance. When considering the significance of the performance in sustainability, the authors used the assessments reported by companies in four aspects. The customers become known with the product through advertising.
Packaging plays a very important role in making logistics successful. The importance of packaging in supply chain management. Jan 03, 2015 packaging for the logistics, a package system requires 3 types of information to design viz severity of the distribution environment fragility of the product performance characteristics of various cushion materials for an uniform and smooth logistics, labeling of the packaging is important. Packaging helps in the protection of the contents of the products. While traditional logistics seeks to organize forward distribution, that is the transport, warehousing, packaging and inventory management from the producer to the consumer. Logistics viewpoints is a professional blog owned and maintained by arc advisory group, inc. Product packaging prepares the product for transporting, warehousing, selling, and using. Importance of food packaging todays consumers are greeted with innovative options that run the gamut from ecofriendly packaging to designs that actually assist in the food preparation process. Packaging and material handling mahsa parvini faculty of industrial engineering, amirkabir university, tehran, iran as a function, material handling and packaging is one of five interrelated functions of logistics selection from logistics operations and management book.
Packaging logistics uses a systems approach to examine all the essential roles of packaging in supply chains, from the purchasing of raw materials to the production and sale of finished products, as well as transport and distribution. The right transport packaging makes it possible for you to get your products out into the world. The importance of packaging in transport and logistics. So much consideration and science goes into selecting the correct container and packaging materials for manufacturers. Todays consumers are greeted with innovative options that run the gamut from ecofriendly packaging to designs that actually assist in the food preparation process. Lets just consider the importance of product packaging or a good for the consumer. The fewer shipments your brand has to make, the less energy used and the smaller your carbon footprint. Inbound logistics is one of the most overlooked aspects in logistics management. Oct 15, 2014 the importance of packaging in logistics posted on october 15, 2014 by holmesmann you may have spent many hours considering the importance of your packaging in terms of marketing value, but its vital function in logistics should not be ignored. The reason for the survey is to demonstrate the impact that damage of a product creates during the transportation to the total packaging cost. Your transport packaging is the perfect place to display this information. Within this core the package plays an important role as facilitating the provision of. Information flow and exchange between packaging and logistics systems the basic values of the packaging logistics and the interactions between packaging and logistics where also discussed. A good example of a packaging fail is what a lot of asian producers have experienced when sending goods to the eu.
Aug 08, 2016 warehouse management is essential to any logistics system, which is an essential part of supply chain management. May 31, 2016 product packaging prepares the product for transporting, warehousing, selling, and using. The world best materials in the world will be worthless if they are not able to reach their destination and not only reaching their respective location is sufficient, but they must also be reached without getting damaged. For example, products with white packaging convey simplicity, safety and purity. The importance of packaging in logistics holmes mann blog. Within logistics packages are primarily of importance in relation to goods.
Material handling includes the movement, storage, control, and protection of materials, products, and packaged goods throughout the process of manufacturing, distribution, and disposal. Packaging logistics is new concept that integrating packaging and logistics systems with the potential of increased supply chain efficiency and effectiveness, through the improvement of both packaging and. This function includes internal material flows, packaging logistics, distributions, disposal, unpacking, and return handling. Packaging helps to allow the product mix easily for the consumers. Sustainability in packaging and shipping works together, as if the packaging is more specific to the size and type of each product, more packages can be shipped in one load. The knowledge and awareness of the importance and potential of the packaging logistics activities along the supply chain is low.
On average, companies can potentially save between 20 58% on inbound freight spend. The term, logistics, and its actions originated with the military. One such product feature and a strategic one for some products. Volumetric weight is a common standard practice of calculating weight being applied by almost all courier companies across the world. Origins and definition the word of logistics originates from. Packaging provides an attractive method to convey messages about product attributes to consumers.
Packaging plays an important role in the creation of demand by attracting the consumers. An interface between packaging and logistics systems. This thesis focuses to the importance of the packaging and like the name of the topic already indicates effects of the packaging in the supply chain. The importance of packaging in todays supply chain by tom k thursday, 08 september 2016 published in blog packaging is often an afterthought in supply chain management, which is a shame because it can have a surprisingly large. In 2005, the council of logistics management changed its name to the council of supply chain management professionals to add differentiation between logistics and supply chain management. As a function, material handling and packaging is one of five interrelated functions of logistics that contributes to a large part of the overall logistics. Packaging and material handling logistics operations. The important role of packaging in operations management. From the logistics perspective, packaging should fulfill the following. It is an important task in functions of logistics operations. While some erroneously view a warehouse simply as a storage facility, some warehousing process elements will play a substantial role in ensuring that the entire supply chain system. Nov 09, 2015 logistics packaging keeps all your items safe, so they arrive at their destination in perfect condition. The importance of packaging in international logistics.
Overview of different packaging functions jonson, 2000. Packaging for the logistics, a package system requires 3 types of information to design viz severity of the distribution environment fragility of the product performance characteristics of various cushion materials for an uniform and smooth logistics, labeling of the packaging is important. Seasonal fluctuations in demand may be smoothed out through packaging. Innovate why your products packaging is as important as the product itself your products packaging is meant to communicate a purpose. It helps in avoiding in transit damage and reducing cost by reducing volumetric weight. Heres why transport packaging is so important for your business. Why your products packaging is as important as the. Packaging is an extension of your brand and should carry the same message. The importance of a good logistics strategy in manufacturing. Apr 29, 2020 sustainability in packaging and shipping works together, as if the packaging is more specific to the size and type of each product, more packages can be shipped in one load. They understand that implementing seamless logistics is a key element in keeping pace with customer demands and outperforming competitors. The main criteria to correspond are operations performed and services offered. Read this article to learn about the need, objectives, functions, advantages and disadvantages of packaging of products.
Role and importance of packaging in supply chain management. Above its fundamental function of protecting, containing and preserving the product, the functions of. Packaging plays a vital role in terms of protection, storage and hygienic handling of a product and it plays a key role in the marketing mix. This context has led to the development of the concept of packaging logistics. Pdf on jan 1, 2016, andrzej szymonik and others published packaging in logistics find, read and cite all the research you need on.
A good example of a packaging fail is what a lot of asian producers. Warehouse management is essential to any logistics system, which is an essential part of supply chain management. A number of previous studies have addressed the issue of the importance of service attributes of distribution centers or warehouses. Why logistics is so important to supply chains any successful business leader will acknowledge the crucial importance of effectively organized logistics. Pdf the concept of packaging logistics researchgate. Nov 09, 2017 this function includes internal material flows, packaging logistics, distributions, disposal, unpacking, and return handling. The article is devoted to packaging that from the logistical point of view is part of. You may have spent many hours considering the importance of your packaging in terms of marketing value, but its vital function in logistics should not be ignored. Packaging and branding are both essential to marketing your product or service. Therefore this thesis focuses on importance of packaging in the industries and its relationship with logistics system. Even after a product is developed and branded, it is important to adopt strategies for other productrelated aspects of the marketing mix. The fewer shipments your brand has to make, the less. The concept of packaging logistics focuses on the synergies achieved by integrating the systems of packaging and logistics with the potential of increased supply chain efficiency and effectiveness, through the improvement of both packaging and logistics related activities.
Because logistics is a component of supply chain management scm. Packaging is a coordinated system of preparing goods for safe, secure, efficient and effective handling, transport, distribution, storage, retailing, consumption and recovery, reuse or disposal combined with maximizing consumer value, sales and hence profit saghir, 2002. However, this process consists of various functions that have to be properly managed to bring effectiveness and efficiency to the supply chain of the organization. While scm is focused on the big picture, logistics is only concerned with the storage and flow of. Some important aspects while packaging a product is to consider the length, weight, size, shape and type of the product. Packaging can in some ways be invisible everyone uses it, but do we really give it enough thought. T abstract no many companies give importance to the impact of an appropriate packaging design for achieving logistic efficiency and sustainability in the supply chain. While some erroneously view a warehouse simply as a storage facility, some warehousing process elements will play a substantial role in ensuring that the entire supply chain system functions efficiently. Logistics is the art of managing the supply chain and science of managing and controlling the flow of goods, information and other resources like. Your brain reacts to colors in different ways, so choose your packaging colors accordingly.
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