Packaging - Operations, Logistics Management | Logistics Management - B Com PDF Download

Packaging
Packaging though an integral part of logistics, also affect marketing and production function. Packaging helps in promotion of products and size, shape, material of the package affects production labour efficiency.

1. Apportionment: Grouping goods into convenient unit for distribution. E.g. mangos in boxes, milk bags in crates.

2. Facilitating handling & using: fruit juices in tetra packs, handling and consumption by users

3. Convenience: Facilitating handling, storage & reuse. E.g. ink cartridges for printers, reusable corrugated boxes, bottles and refill packs.

Communication:Logistical Functions of Packaging

How does packaging helpin reducing overall costs and value addition?

1. Containment: Packaging provides containment for products.
2. Protection: Protection from environment, pilferage, shocks of handling and moving.
3. Cube Minimization: Reducing the space occupied by the product to cut the freight charge. E.g. Round containers, oval shaped containers and square shaped bottles, etc.
4. Weight minimization: Reducing the weight of the consignment to fully utilize the capacity of the truck. E.g. Liquids are packed in plastic bottles rather than glass bottles.
5. Content Identification – Product, manufacturer, universal code etc.
6. Tracking: Bar codes and scanners.
7. Handling Instructions: Fragile, This side up, temperature restrictions, environment concerns, potential dangers etc

Consumer Oriented Packaging V/S Logistics Oriented Packaging 

Consumer Oriented Packaging: Focuses on consumer convenience and appeal, marketing consideration and display.

Logistics Oriented Packaging: Focuses on handling convenience and protection during transpiration, material handling and storage.

STAGES IN LOGISTICS PACKAGING

1. Products Packaging: Packaging the products itself, e.g. soft drinks are packed in cans.
2. Master Cartons: Packaged products are packed in larger cartons to facilitate quantity handling.
3. Unit Load: Master cartons are consolidated into a single large unit to facilitate transportation, protection and storage. It involves Unitisation or Palletisation.
4. Contenerisation: Unit load is placed in a rigid container for transportation.

Unitization / Palletisation 

Unitization is a concept where size shape, weight, volume of the items is considered and master cartons are placed to form a single larger unit. E.g. bottles in crates, steel sheets in coils, etc.

1. Leads to standardization of handling equipments and methods.
2. Facilitates use of standardized handling equipment like a forklift or a crane.
3. Reduces the time for handling and cost of handling.
4. Simplifies the checking of inbound shipments.
5. Improve product protection.

Types of Pallets

1. Wooden pallets – used commonly but break and disintegrate.
2. Pressed wood fiber pallet
3. Plastic pallets – light and recyclable
4. Solid molded plastic pallets
5. Corrugated fiberboard slip sheet – provide cushion effect to the unit load
6. Refrigerated pallets- for refrigerated materials

Contenerisation                                                                                             
Contenerisation is a technique of distributing goods in unitized form and making convenient to establish an intermodal transport system. Containers are of standard size i.e. 20 ft or 40 ft.

Benefits of Contenerisation:

1. It eliminates need for intermediate handling at terminals.
2. Standardized containers helps in saving on packaging materials and labour for packaging.
3. Less risk of damage and pilferage.
4. Facilitates intermodal transportation without intermediate reloading.

Types of Containers:

1. General Cargo Containers – for general cargo like garments metals etc.
2. Refrigerated Containers – for food items that require cold storage like fish, meat.
3. Insulated Containers – for items that require airtight space like fruits and vegetables.
4. Ventilated Containers – for items that require fresh air like coffee seeds, tea leaves.
5. Flat Containers – They have only flat base with no walls, used when cargo the cargo is of odd size or very heavy like trucks.
6. Liquid Containers – They have main holes for loading and unloading of liquid cargo like milk, oil.
7. Gas Containers – They have fixtures to fill or empty liquefied gas. E.g. Liquid oxygen.