Packaging
Learning
• Traditional and modern packaging functionality
• Objective and factors affecting packaging
• Type of Packaging
• Packaging categories
• Design consideration
Introduction
• Fundamental to the logistics industry.
• makes products safer and easier to
handle, and protects them during
storage, transport, and delivery.
• Centuries of innovation and refinement
have produced packaging technologies
that deliver high performance in range
of applications and at extremely low
cost.
• Packaging is a marketing tool and is related to the
performance of marketing function.
• Primarily a delimitation of space and setting aside of a
product from external environment.
• Forms the important cost element of the goods
• Represents 5–30 per cent of the value of the goods
depending on the product type.
Traditional and modern Packaging Functionalities
Packaging Strategies
Type of Packaging
Primary Secondary Tertiary
packaging packaging packaging
Laminated Pouches
Plastic Containers
Thermoformed
Products
Tin Can
Laminated Tubes /
Lamitubes
Primary Mono-cartons
Packaging
Paper-Foil Laminate
Composite
Cans
Glass
Containers
Shrink
Wrap
Cling
Primary Film
Woven
packaging Sack
Jute
Bags
Intermediate
Bulk
Containers
Primary Paper Bags
packaging
Bubble Wrap
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Plastic Crates
Plastic Trays
EPS Trays
Secondary
Packaging
Wooden Crates
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Corrugated
Fiber
Board
Wooden
Containers
Wooden
Tertiary Pallet
Packaging Plastic
Pallet
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Packaging categories
• Consumer
• Logistical
Consumer vs logistical packaging
• The consumer or product packaging is basically done for
convenience, market appeal and protecting the product
from the effects of natural elements. However, logistical or
industrial packaging is a very critical element in the physical
distribution process.
• Product packaging is designed to meet marketing objectives,
but logistical packaging is designed while keeping in view the
distribution objectives.
• The primary purpose of logistical packaging is to prevent damage to
the product during storage, transportation and handling, when it is
moved in bulk quantities for distribution in the market.
• The packages move through varying storages, shipping and handling
conditions at different places on which shippers have no control.
• Packaging should maximize the protection of the product under
different conditions so that it reaches the consumer in usable form.
• Logistical packaging can considerably enhance the productivity of the
logistical system through ease in handling, space utility, damage
reduction etc.
Logistical packaging
DESIGN CONSIDERATIONS
• Logistical packaging is a crucial element in the physical
distribution system, which helps in enhancing the system’s
efficiency and effectiveness of the supply chain of the
company.
• Proper packaging for logistics application takes care of the
cost, which otherwise would have been incurred in the form
of product damaged during transit, ultimately resulting in
loss of opportunity and customer dissatisfaction.
Keeping in mind while logistic packaging
Material handling
Communication Transportation
Storage
Packaging in Material Handling
• Packaging is the means of providing safe delivery of the product in usable form to
the ultimate customer.
• The physical distribution includes number of activities such as storage,
transportation and handling.
• Most of the damages to the product take place during the handling operation at
the time of loading and unloading at the starting, trans-shipment or destination
points.
• The types of the equipment, which are used for handling of packages, and their
capability and conditions, play a vital role in controlling the product damages.
• The handling systems vary considerably at different points in the distribution
channel. Hence, these factors should be taken into consideration along with the
sensitivity of product and the cargo while designing the packaging.
• In fact, many points are uncontrollable, but remedial measures have to be taken,
based on the historical statistical data to pinpoint the areas, operations, skills and
facilities to avoid future damages.
• In majority of places, the loading and unloading operations are done manually.
• The reasons for product damages during loading and unloading operations are:
• Height of loading platform
• Method of handling
• Vehicle condition
Reason for Damages in material handling
• Irregular truck bed affecting the stability of packages on the uneven contours.
• The gaps between the truck bed planks causing obstacle to the movement of
package during unloading and causing damage to it.
• The protruding bolts and angles behind the drivers’ cabin damaging the
packages.
• The partially loaded truck may not allow the consignment to be secured to the
place during transit, and may hit at the sides or rear-end of the truck body causing
serious damages to the packages.
• Ropes used for tying the consignment on the fully loaded truck damaging the
packages.
Precautions during loading and unloading operation
• Usage of additional levelling and packing material at the critical
places on the truck bed
• Packages to be designed on modular concept to avoid dimensional
mismatching
• Special provisions for rope tying.
• Avoid rolling of packages on floor.
• provision of proper unloading platforms to reduce the drop height
• usage of proper material handling equipment
Keeping in views during logistic packaging
Material handling
Communication Transportation
Storage
Packaging in Transportation
•Major cost element in logistics
operation.
•Transportation cost varies from 10 to
50 per cent of the product cost.
Transportation cost for the consignment depends
on the following factors
Gross Gross
weight volume
Size and
Shape
• Light weight packaging will accommodate more tonnage/volume in
transportation compare to normal packaging.
• Using modular packaging:- have standard dimensions, to enable
the combined use of several loading units with different sizes
Size and shape in packaging during
Transportation
• Odd sized and shaped consignment attracts higher freight charges
per unit weight or volume.
• Extra-heavy consignment with odd shapes requires special care and
efforts for packaging, which is a non- standard design.
Packaging as per mode of transport
Cost of sea-worthy packing is 30–40 per cent more than the
normal packing for in land transport
For shipments by air, the use of lightweight material is
recommended, as air shipment attracts highest freight
tariff amongst all the available travel modes.
consignment packages are designed to take care of the
environment and multimodality of travel.
Container transportation
• One of the greatest advantages of container packing
is considerable reduction in cost of packaging.
• For example, for transportation of high-value fashion
garments through box containers, an innovative way
of logistical packaging is being used.
• They have developed special hanger fixtures to keep the garment in hung position during the
journey. This saves a lot on primary packaging of the product
Keeping in views during logistics packaging
Material handling
Communication Transportation
Storage
Packaging in Storage
• The warehousing capacity utilization depends on the material storage
system.
• packaging plays an important role for cubic space utilization of floor
space. Well-designed packaging will ensure maximum storage density
for the given shape and size of the product.
• the vertical space up to ceiling of the warehouse can also be utilized,
provided the packaging can sustain the stacking load.
• In warehouses, the ceiling height may go up to 30–40 feet.
• In case of consumer goods like TV, vertical stacking is allowed
maximum up to five cartons.
• the weight of the stack is directly coming on the product itself rather
than the package.
• If the box is made little stronger (provided cost add-ons are not
disturbing the pricing structure of the product), the stacking height
can be increased, adding to the space utility of the warehouse.
• The increased stack height may call for investment in material
handling equipment.
Keeping in views during logistics packaging
Material handling
Communication Transportation
Storage
Communication
• The logistical packaging has to play an important role of communication during its journey from
place of shipping to the place of delivery.
• Following information is of vital importance for consignment to reach at the right place in good
condition:
• Contents of the package (product, weight, quantity, size)
• Type of goods (hazardous, explosive, perishable, radio active etc.)
• Name of the manufacturer
• Name of consigner (place of origin)
• Name of the consignee
• Country of origin
Logistical packaging requirement
PACKAGING MATERIAL
Corrugated Fibreboard
• for logistical packaging, thicker corrugated sheets with five to six ply or more are
preferred.
• The master cartons are invariably made out of two to three ply corrugated sheets
• This material is most commonly used for consumer durables such as television sets,
washing machines, refrigerators, pharmaceutical products, liquor, cigarettes, matches,
personal care items, light engineering goods, paints and electronics goods.
The pallets are also made out of thin corrugated sheets. However, these pallets
are used for very light goods in electronic, plastic and foam manufacturing
industries.
The present
consumption of
corrugated boards
in India is to the
tune of 3,20,000
tonnes per annum,
which is divided
among above
industries. Largest
consumer is the
food processing
industry.
Sharing of corrugated board(Industry wise)
Steel
• The metal containers—boxes or drums—made out of galvanized mild steel
sheets are used for logistical packaging.
• This strong material can be used in handling during transit.
• The usage of this material is recommended for products like chemicals or
lubricants wherein strong packaging material, which is less prone to damages
during transit due to abuse in handling, is required. Due to higher strength of
material, the spilling over or leakages are reduced.
• Steel is commonly used for box containers used in multi-modal
transportation by sea, rail or road. These containers are made out of thick
alloy steel grade sheets for durability and high strength.
Plastic
• Plastic bags and containers are quite common in logistical packaging. Plastic drums are used
for transporting liquid chemicals, while bags are used for chemicals in solid form and food
grains packaging.
• Shrink plastic sheets are used for securing and protecting the unitized load on the pallets or
skids.
• Shrink packaging is very cost-effective as compared to the rigid plastic containers.
• it is not reusable and being non-biodegradable material creates problem for disposal.
• The pallets made out of high-density polyethylene (HDPE) are commonly used in application
wherein properties of chemical and impact resistance are preferred.
• Polyethylene has very poor resistance to bending.
• Polystyrene or Polypropylene is also occasionally used for certain product applications.
The high-density plastics are used for rigid lidded containers for storage
and transportation of small items. Plastic straps are used for unitizing the
material in small packs to be stuffed into a large box container.
Wooden Packaging
box is a container made of
wood for storage or as a
shipping container.
• A wooden Construction may include
several types of wood; timber,
plywood, engineered woods,
etc
Material comparison
Wood Plastic Corrugated board Metal
Advantage 1) Readily available 1) Durable than wooden 1) Easy to fabricate 1) Most durable
2) Easy to make pallets 2) Cheapest alternative 2) Very strong
3) Can be repaired in- 2) Cleaner than wooden 3) Light weight 3) High reparability
house pallets 4) Easy to handle 4) Designed for
4) Take up loads up to 5) Waste can be capacities up to
2000kg recycled 4000kg
5) Can be machine
fabricated
Disadvantage 1) Dimensional 1) Not disposable 1) Probe to easy 1) costly
variations due to 2) Strength lower than damage
manual fabrication wood 2) Cant take more loads
2) Prone to attack by 3) Can not be repaired
insects 4) Costlier than wooden
3) Nailing my cause pallets.
wooden planking
splitting leading to
reduction of pallet
strength
4) Wood fibre structure
can affect strength
PACKAGING COST
• The logistical packaging helps in reducing the transit damages,
enhancing the operating efficiency of the material handling
equipment and economizing on space utility.
• The net result is reduction in operating cost of the system through
better asset utilization and prevention of transit damage to the
product.
• However, the gain is more than the loss, which would have resulted
otherwise due to improper logistical packaging.
Cost of the packaging
• Cost of package (manufactured or landed)
• Storage cost of empty package
• Handling cost of empty packages
• Packaging operation cost (cleaning, filling, sealing, labelling, unitizing
etc.)
• Package damage (during packaging operation) cost
• Obsolescence cost
• The logistical packaging cost depends on type of product (perishable, fragile,
hazardous, capital goods, spare and components), physical dimensions of the
product, the unit value of the product, type and quality of handling and
transportation of equipment, regulations etc.
• it varies from 0.5 to 5 per cent of the value of the consignment. The maximum is
on the sea worthy packaging.
SUMMERY
• The latest concept in logistical packaging is ‘Packaging
Logistics.’
• It contributes to a sustainable society as it integrates
product/packaging development and supply chain
management in economic, technical and environmental life
cycle perspectives.
• Packaging logistics cover the design of a product, its package and
packing, as well as the adaptation and control of the distribution
system and the administrative and information systems associated with
the processes throughout the whole chain from raw product, via
various processing stages, to distribution to the end user, and on to
recycling and recovery.
• As both packaging and logistics form important parts of packaging
logistics thinking, safe delivery can be offered to customers and users
at a low cost.
• Packaging logistics can also contribute to modern product
development and design, by ensuring that products are designed such
that they can be distributed with a minimum use of resources from
production to consumption.
