Packaging Flashcards
Packaging
is a marketing tool related to the performance of marketing function. The basic objective behind packaging is to prevent damage to the product during storage, transportation and handling, when it is in movement for distribution in the market. It forms an important cost element of goods and represents 5 – 30 percent of the value of goods, depending on the type of product.
Two main types of packaging
Consumer and Industrial Packaging
Consumer Packaging
This packaging is done with a marketing emphasis. The packaging design focuses on aspects like customer convenience, market appeal, shelf utilization, product protection etc.
Industrial packaging
The concept of containerization or unitization where the individual products are grouped into carton, bags, bins, or barrels for handling efficiency. The master cartons are grouped into larger units for handling, the combination that is referred to as containerization or unitization. Logistical packaging is designed to meet the distribution objectives.
Functions of packaging
- Damage Protection
- Utility/Convenience
- Communication
- Damage Protection
The master carton protects products from damage while movement and storage, in addition to being a restraint to pilferage. The cost of protection increases according to the degree of value and fragility of the product. The vulnerability of damage is related to the environment in which it is stored and transported.
Certain situations in which the product will cause in – transit damage to the product are
Vibration, compression, puncture and impact.
The outside elements also influence the packaging
Temperature, humidity etc., which are beyond the control of logistical management.
- Utility/Convenience
This refers to how packaging can affect the logistical productivity and efficiency. When products are packed in certain configurations and order quantities, it increases the logistical output. Packaging thus provides convenience of handling and storing. Also the concept of unitization is very significant here. Unitization refers to the process of grouping the master cartons physically into one restrained load for easier material handling and transportation.
- Communication
Packaging plays a significant role by assisting all channel members to identify the contents of the package. An attractive surface decoration can serve as a display item. Information such as the manufacturer’s name, quantity, code number etc is mentioned on the package.
Types of packaging material
- Shrink-Wrapping
- Aluminium
- High – Density Plastic Boxes
- Plastic Strapping
- Plastic Foam Dunnage
- Film – Based Packaging
- Blanket – Wrapping
- Returnable Containers
- Intermediate Bulk Containers
- Plastic Pallets
- Refrigerated Pallets
- Shrink-Wrapping
Form of packing where a pre - stretched plastic sheet or bag is placed over platform and master cartons. Heating locks the cartons. Advantages of this packaging are adaptability to various shipment sizes, low cost, and the ease of identifying contents and damage. A major disadvantage is disposal of waste material.
- Stretch – Wrapping
The unit load is wrapped with a tightly drawn external plastic material. Then it is rotated on a turntable to place the stack under tension. Platform is wrapped directly into the unit load.
- Aluminium
The main area of usage is foil. These are used as a replacement for beverage cans, stackability being the main advantage. Metal tubes and moulded trays are the other two forms. While metal tubes are used in pharmaceuticals, crafts, and cosmetics, moulded trays are used in the food industry.
- High – Density Plastic Boxes
Containers with lids similar to those purchased for home storage applications. These are rigid and sturdy, thus ensuring high protection.
- Plastic Strapping
A load is unitized so that many smaller containers can be handled as a single larger container. The strapping, which is usually about one to one and a half inch wide, is bound tightly around the containers.
- Plastic Foam Dunnage
Used to pack irregular shaped products into standard shaped boxes. These are light and do not increase the transportation cost and also provide substantial protection. A major issue here is the environmental problems related to disposal.
- Film – Based Packaging
This utilizes flexible materials instead of rigid packaging like corrugated fibreboard boxes. Corrugated fibreboard cases represent an important part of the paper and board industry, in terms of both tonnage and value. Corrugated fibreboards are commonly used for television, washing machines, refrigerators, cigarettes, personal care products, etc among a host of other products. The advantages here
- Blanket – Wrapping
A traditional form of packing, which is generally used in household packing. This packing is most suitable for irregular shaped products like chairs, tables and other furniture. Generally household goods carriers use these services.
- Returnable Containers
These are mostly re – usable packages like steel or plastic and sometimes corrugated fibreboard boxes. These are used by automobile manufacturers to pack inter - plant shipment of body parts.
- Intermediate Bulk Containers
Used for granular and liquid product shipment quantities smaller than tank cars but larger than bags or drums. Resin pallets, food ingredients, and adhesives are packed in these containers.
- Plastic Pallets
The rapid growth in the utilization of plastic in packaging is noticeable. These are lightweight and recyclable.
- Refrigerated Pallets
A self – contained refrigerated shipping unit, which can be placed inside a regular dry van as a Less Than Truck Load shipment. This integrates the demands of environment and unitization.
GENERALIZATION
Packaging has a key impact on the cost and productivity of the logistical system. A central planning logic designed to control the total distribution costs must incorporate all the relevant costs and trade – offs, also those related to packaging. The cost of every logistical activity is affected by packaging.
