Packaging and Materials Handling

1. Packaging and Materials Handling

2. 9 6 Functions of Packaging • Marketing • Information • Promotion • Logistics • Containment • Protection • Apportionment • Unitization • Convenience • Communication

3. 9 7 Benefits of Good Packaging • Lighter packaging may save transportation costs • Careful planning of packaging size/cube may allow better space utilization • More protective packaging may reduce damage and requirements for special handling • Environmentally conscious packaging may save disposal costs • Returnable containers provide cost savings and environmental benefits • Interfaces well with material handling equipment

4. Factors Governing Good Package Design • Pricing-cost • Protection level • Standardization • Channel of distribution • Handling ability • Reusability-recyclability • Product attributes • Conveying info on • Cube utilization

5. Shelfreadypackaging • To transport theproductfromwarehousetoshelf as effectively as possiblegivingrealbenefitstotheretailer • Increasedsalesthroughbetterbrandvisibility • Improved in storelabourefficiencies

6. Tertiary– this form of packaging is theretoaidhandling of large, consolidatedsmallerpackaging. (pallets, containers, shippingcartons) 2. Secondary – an outerboxthatencompassesitem- boxaroundtoothpastetube 3. Primary – containstheactualproduct. Oftenthepackthattheconsumerwilltakehome.

9. Design for supply chains • Tesco UK-temperature sensitive packages • IKEA-flat packaging

10. Sustainable Packaging • Using resources in a way that enables renewal and replacement by comparable resources

11. Sustainable Packaging • Reducing packaging and maximizing the use of renewable or reusable materials • Using lighter weight, less toxic or other materials which reduce negative end-of-life impacts • Demonstrating compliance with regulations regarding hazardous chemicals and packaging and waste legislation • Optimizing material usage including product-to-package ratios • Using materials which are from certified, responsibly managed forests • Meeting criteria for performance and cost (e.g., minimize product damage during transit) • Reducing the flow of solid waste to landfill • Reducing the costs associated with packaging (i.e., logistics, storage, disposal, etc.) • Reducing CO2 emissions through reduced shipping loads

12. Coca Cola’s packaging strategy • just in 2009 avoided the use of approximately 85,000 metric tons of primary packaging, cost savings of more than $100 million.

13. Dell Computer • committed in 2008 to reduce cost by $8 million and quantity by 20 million pounds of packaging by 2012 centered around three themes (cube, content, curb): • Shrinking packaging volume by 10 percent (cube) • Increasing to 40 percent, the amount of recycled content in packaging (content) • Increasing to 75 percent, the amount of material in packaging to be curbside recyclable (curb). • sustainably sourced bamboo packaging certified by the Forest Stewardship Council (eliminating over 8.7 million pounds of packaging)

14. Wal-Mart • took a huge step in 2007-supplier conformance around packaging. • design and innovative product activity by thousands of key suppliers in response to the mega-retailers challenge. • By reducing packaging in the Wal-Mart supply chain by just five (5) percent by 2013 • prevent 660,000 tons of carbon dioxide from entering the atmosphere, • keeping 200,000 trucks off the road every year • save the company more than $3.4 billion

15. A case from Wal-Mart’s supplier: General Mills • They straightened its noodles, meaning the product could lie flatter in the box( cut the number of unique pasta shapes in half and increased the density of the pasta shapes): • reduced the size of Hamburger Helper packages by 20 percent while keeping the same amount of product • saved nearly 900,000 pounds of paper fiber annually. • reduced greenhouse gas emissions by 11 percent, • took 500 trucks off the road • increased the amount of product Wal-Mart shelves by 20 percent.

16. Smart packaging • A conventional package made smart by an RFID tag or label. The functionality is electronic and the major beneficiary is the supply chain. –smart shelves • A package made smart by functional attributes that add benefits to the consumers. • These may be purely design elements, or else mechanical, chemical, electrical or electronically-driven functions that enhance the usability or effectiveness of the product in some way. • Examples might be time-temperature food quality labels, self-heating or self-cooling containers for beverages and foods, or milk cartons with electronic displays indicating use-by dates.