The packaging of a product is broadly determined for product promotion and product protection, the latter being the function that is particularly pertinent to logistics. There are also some other factors that need to be considered when designing packaging for logistics purposes. In addition to product protection, packages should be easy to handle, convenient to store, readily identifiable, secure and of a shape that makes best use of space – usually cubic rather than cylindrical.
Once again, there is trade-off s that exists between these factors. These trade-offs will concern the product and the logistics operation itself. It is important to appreciate that, for those involved in logistics, the package is the product that is stored and moved and so, where possible, should be given the characteristics that help rather than hinder the logistics process. Packaging is very much a part of the total logistics function, and the design and use of packaging has implications for other functions such as production, marketing and quality control, as well as for overall logistics costs and performance.
Packaging Optimization
Various means of reducing costs and packaging optimization are
- Reduction in administrative costs by reducing the number of suppliers and vendors utilized in the shipping process. By simplifying interactions with suppliers and vendors.
- Reduction in handling costs by designing packaging such that the packing time for a given package is minimized. Employees can pack goods more quickly and efficiently, meaning less money spent on handling the product and its packaging. Using the correct packaging for the method of transport that will be utilized. For example, packaging goods for shipment via rail will differ from packaging goods for shipment via air freight. This reduces lost space in the shipment, and increases the efficiency of the transport being utilized.
- More efficiently protecting the product by considering environmental and product factors. To minimize the chance of product damage during shipping by considering both the likely environment through which the product will be shipped as well as considering the level of product protection necessary. For example, shipping fine china would require more protection than shipping plastic mugs; by adjusting the level of protection to meet the need of the product, the approach minimizes breakage while reducing the waste that can result from utilizing too much protection for those goods that don’t need it.
- Utilizing returnable packaging when possible. A significant factor in product shipping costs is the cost of the materials used to ship the product. When an end user simply discards the shipping material, the shipping business must repurchase the shipping materials for the next shipment. Emphasizing the use of returnable packaging (when feasible to do so). This reduces the amount of packaging per unit that a given business will need to purchase. Further, this will reduce environmental costs by reducing the per-unit amount of waste that is being shipped off to a landfill.