2. Chapter 12: Packaging and containerisation - outline
Packaging has been in existence ever since people started storing and transporting goods.
The modern supply chain cannot function without some form of packaging or containerisation.
Packaging has to contribute to efficiency and effectiveness in the supply chain.
Technology can play a role in further enhancing the value of packaging and containerisation.
The effect of packaging on the environment must be taken into account and minimised where possible.
Packaging decisions should be systemic to ensure that an integrated logistics and supply chain approach is followed.

3. Learning outcomes
While studying this chapter, make sure that you focus on:
the logistics functions of packaging;
the benefits of using packaging;
the cost and service trade-offs of using packaging;
factors involved in the development of packaging;
similarities and differences between containers and unit loading devices (ULDs);
the integration of technology with packaging; and
the benefits of technology and packaging integration.

4. Definition and functions of packaging
Definition: see p. 267
A combination of art, technology and material
Functions of packaging:
Apportion
Contain
Protect/serve
Unitise
Transport
Inform/sell

5. Definition and functions of packaging (continued)
Levels of packaging:
Primary
Secondary
Unit load
Distribution
Application:
What level of packaging is involved in a box of cereal?
What level of packaging is involved in a case of beer?

6. Benefits of packaging
Benefits vary according to type of packaging and can include:
Preservation
Information and instruction
Convenience
Innovation
Waste minimisation
Hygiene and safety

7. Role of packaging in logistics
Warehousing and materials handling
Storage and handling
Space utilisation
Transport
Air: minimise size and weight, but withstand pressures
Road and rail: stackability and maximised space utilisation
Ocean: harsh environmental conditions
Trade-offs
See Table 12.1 (p. 271)

8. Packaging and marketing
Packaging plays a role in the four ‘P’s of marketing:
Product
Place
Price
Promotion
POP packaging:
Logistics function secondary to marketing function
Conveys impressions and ideas through packaging
(differentiation)

9. Development of packaging solutions
Various factors influence packaging design, including:
Consumer requirements
Physical form and nature of packaging
Logistics requirements
Packaging materials:
Types: wood; paper/cardboard; glass; metal; plastic
Choice is influenced by strengths of different materials
Rising raw material costs and environmental concerns are driving packaging industry towards greater efficiency

10. Development of packaging solutions (continued)
Palletisation
Designed to facilitate storage and transportation
Pallet types – see p. 273
Pallet pattern design important, but often neglected
Bulk-packaging systems
Containment of large volumes
Various materials can be used depending on product and supply chain requirements
Most commonly used systems: bags; corrugated cardboard; metal; rigid plastics; wood
Factors to take into account during design – see p. 275

11. Development of packaging solutions (continued)
Cost trade-offs
Total packaging cost vs higher sales and savings elsewhere.
Legislation
Places compliance requirements on manufacturers of both packaging and products, as well as retailers.
The environment
Use life-cycle assessment (LCA) to evaluate potential environmental impact of various packaging options.
Reuse and recycle as much as possible.

12. Containerisation System for intermodal freight movement
ISO containers:
- Standardised size, fitting and reinforcement
- Types of containers – see pp. 277– 9
Smart containers integrate technology to sense and report.
ULDs are special types of airfreight containers or pallets.

13. Integrating technology with packaging and containerisation
Bar codes
Represent information for machine ‘reading’
Layout types: 1-D and 2-D (stacked and matrix)
Bar code systems: UPC & EAN
RFID
Automatic identification
Integrated circuit / microchip and antenna
Active vs. passive tags
Multi-technology integration

14. Supply chain perspective of packaging
Manage packaging as interdependent component
Packaging design influences efficiency and effectiveness of entire supply chain
Consider requirements of all partners in a supply chain
Lack of conformity due to insufficient information flow
Sub-optimisation can lead to increased costs upstream or downstream in supply chain
Environmentally-friendly packaging requires co-operation