Value Adding Roles- Specialty Packaging

What is Packaging?

Packaging is a critical component in distribution centre management. It encloses and protects the products for distribution, storage, sales and even consumption. With packaging, the products can be delivered using full-truck load (FTL), hence reducing cost. Therefore, it affects both the efficiency and effectiveness of the logistical operations.

Elaborated Explaination:

The packaging of goods should meet the packaging functions so as to increase both efficiency and effectiveness. Some of these functions include:

1) Proactive function

- Good service includes ordered goods arriving to the warehouse from the manufacturing company in good condition.
- The packaging of the product should protect the product from damage or deterioration during the delivery and transfer

2) Warehouse function

- Packaging of goods should be stackable and meet the demands of the storage equipments such as the forklift in the warehouse.

3) Transportation function

- Packaging can facilitate the efficiency of transporting the goods from one place to another. Thus, the packaging size and form should optimize the use of transport space (FTL) with the lowest possible weight.

4) Handling function

- Combining goods into groups or boxes simplify deliveries. Form and size of packaging facilitates the use of forklifts, or storage and retrieval system.


5) Information function

- Packaging allows goods to be distinguished easily. Examples include colour, pictures and labels. Moreover, packaging of fragile or perishable goods requires special treatment like signs or symbols with explanations.

Furthermore, the packagings for goods are tested due to frequent handling and moving. Thus, tests are conducted for the packages against all possible situations. The tests include:
- Vibration
- Dropping
- Exposure to temperature and moisture
- Radioactive material for hazardous material through the use of a Geiger counter.

Example:

A product is required for delivery from a warehouse. An example is bottled-drinks. These bottled-drinks are stored in the warehouse in its plastic bottles. This is to protect the product from being contaminated or damaged during storing and handling.

Moreover, these bottled drinks are also packaged to give customers information on the bottled-drinks. This information includes the amount of calories the drink has and the company itself.

When there is a demand from customers, these bottled drinks are packed together in a carton box. The carton boxes are then loaded onto a pallet. This is known as unit load. The process is called unitization as it consolidates packages into larger packages into a single unit ready for shipment. Furthermore, the pallets are packed in such a way that it is protected from physical damage during transporting.

The pallets are loaded into a container through a process called containerization. Now, the goods are ready to be shipped to the different customers. One of the modes of transporting the products is by road.

To add on, the packaging can also affect the utilization of container use. Effective packaging can maximize the utilization of the container, hence lowering transportation costs. Packaging the goods to different customers’ needs reduces material handling, thus reducing the need to re-package.

2 – 3 usefulness of this topic in the distribution centre

• Effective packaging can result to major cost savings for transportation cost, hence reducing the selling price of the product to customers.
• Effective packaging protect products in the DC from environmental conditions reducing the chances of damaging the product.
• Packaging can facilitates logistical integration. E.g. packaging is customise for the customers so that when goods reach the hand of the customers, they do not have to do repackaging/rework.
• Facilitates unitisation which increase protection and reduce movement in the DC.
  

2 – 3 constraints of this topic in the distribution centre

• Packaging can be very costly, however, is a trade off for Transportation costs.
• Packaging for chemicals and odd shape products must be handle with attention to avoid unnecessary damage to warehouse personnels.