Discuss the role of packaging from a logistics perspective

Answer 1

As product comes off the assembly line, the handoff from production operations to logistics begins. Packaging plays important roles in the smooth transfer of finished goods from the plant to the distribution center and customer locations. Package design issues can affect labor and facility efficiency. Well-designed packaging facilitates efficient handling and shipping of the products, keeping landed costs in check.

Package design impacts an organization's ability to use space and equipment. The design must promote effective space utilization in the production facility and distribution centers. The physical dimensions of products and packaging must fall within the capabilities of existing materials-handling equipment at the factory, distribution centers, and customer locations. A major packaging concern is the ease of handling in relation to materials handling and transportation. Handling ease is quite important to the production manager, whose labor must be used to place the goods in the packages. Another primary concern is protecting the goods in the package.

With customer service playing an ever-increasing role in the supply chain, companies need to integrate their packages with customers' materials-handling equipment. Also, packaging plays a key role in providing information about the package contents. Properly identified packages and reusable containers make it easier for production personnel to locate goods needed by the workcenter or assembly line. Barcodes, RFID tags, and other auto-ID tools can be attached to or built into the packaging to make product information more readily accessible.

The sustainability mantra of reduce, reuse, recycle is not lost on other manufacturers who are embracing these new packaging technologies. In fact, the global market for sustainable packaging is projected to reach $142.42 billion by 2015 .