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The Role of Packaging in the
Supply Chain:
 The requirements of packaging
 Forces changing the nature of
packaging – from a South
African perspective
1
1. Protect
2. Identify
3. Keep Together (Unitize)
4. Enable handling
5. Marketing
6. Convey Information
1. Requirements of packaging:
2
Requirements of packaging: 1. Protect
3
Requirements of packaging: Identify
How does packaging contribute to product identification?
Answer:
The right packaging combines size, design, and colour to attract potential consumers.
http://wiki.answers.com
4
Requirements of packaging: Identify
COLOR INDICATION
The package is designed with a number of indications that ensure
fast and reliable product identification:
1. Lid colour indication – four colours represent different
diameters: red, blue, green, and gold.
2. The label on the tube’s lid indicates the implant’s diameter and
length.
3. A product characterization label is positioned outside the
implant’s outer tube.
http://www.paltopdental.com/Products/Implant_Packaging5
Requirements of packaging: Identify
6
Easier to handle and control.
Requirements of packaging: Unitize
7
Requirements of packaging:
Enable Handling
8
Requirements of packaging:
Enable Marketing
9
Requirements of packaging:
Convey Information
10
1. Technology
a. Materials
b. Manufacturing techniques
2. Marketing
a. Customisation
b. Drawing attention
3. Legislation
a. Health concerns
b. Environmental concerns
c. Compulsory Information
4. Global movement and regulation
5. Modes of transport
6. Market dynamics
11
2. Forces that are changing the
nature of packaging:
1. Technology
a. Materials and coatings
i. Mycobond – organic filler ( replaces foam)
(Mushroom)
ii Cellulose Bamboo and Banana
iii Organic (compostable) plastics
Iv New polymers
v Composites (Laminates and coated products)
vi Graphene – molecular layer deposition
vii Atomic Layer Deposition Coating Technique (Coating)
Coming soon – watch this space!
2. Forces that are changing the
nature of packaging:
12
 Developed in Finland in the 1970’s
 Coating which has excellent gas permeation resistance and is
particularly suitable for treating packaging for food and pharmaceutical
products. Thus far it has been used mainly in microelectronic
applications. ALD leads to the manufacture of packaging materials
which are thinner, lighter and better sealed than traditional barrier
materials.
Atomic Layer deposition (ALD)
13
Potential Applications(according to Wikipedia)
Room temperature distillation of methanol for fuel and human use
Single molecule gas detection
Graphene nanoribbons
Graphene Quantum dots
Graphene transistors
Graphene optical modulators
Integrated circuits
Electrochromic devices (Smart glass)
Transparent conducting electrodes
Reference material for characterizing conductive and transparent materials
Thermal Management Materials
Solar cells
Ultracapacitors
Engineered Piezoelectricity
Graphene Biodevices
Anti bacterial
Study of liquids
Desalination
Graphene
14
The packaging is made utilising two different certified
compostable films – with a structure of one layer of
Innovia Film’s NatureFlex™ NE30 film laminated to
Novamont’s Mater-Bi. http://www.packaging-
int.com/article/innovative-cereal-pack-uses-natureflex-film.htm
Cellulose
15
1. Technology
b. Manufacturing techniques
i. 3-d printing
ii. Print – on –demand – e.g. Windows 7 launch
iii. Digital printing vs. Lithographic plate (offset)
2. Forces that are changing the
nature of packaging (continued)
16
Benefits:
Transportation costs to send printed material in > eliminated
Warehousing costs to store printed material in inventory > greatly reduced
Inventory destruction costs to scrap outdated/excess inventory > greatly
reduced
Flexibility to update marketing materials on a regular basis at no additional cost
> enabled with POD
Fast turnaround times for print production > offered with POD
Custom/Variable data printing > offered with POD
Small volume / specialty print job capability that can be easily integrated into
existing fulfilment services for a customer > enabled with POD
Environmental sustainability - digital printing does not require film, plate-
making chemicals, VOC-emitting and oil-based inks, synthetic proofing materials,
or large amounts of make-ready paper. Digital is a cleaner, greener way to print.
http://www.fulfillmentamerica.com/pod/print-on-demand-benefits.cfm
Digital Printing: Print On Demand
17
Studies by the Plastics Federation of South Africa found the
carbon footprint of a 1 litre sachet of milk is 60% lower than that
of equivalent PET bottle. According to the latest figures by the
Milk Producers Organisation of South Africa, only 20% of the
annual production of 1,5 billion litres is packaged in
sachets, while 70% is packaged in plastic bottles.
It requires almost 2,5 times more energy to bottle liquids than
using sachets, - South African production plants can save up to
60% of the energy consumption by switching to milk sachet
packaging.
http://all4women.co.za/food-and-recipes/food-articles/competition-food-tap-it-milk-
dispensing-win.html
New products
18
But digital packaging isn’t only for cereal. General
Mills is working on adding assets to their whole line of
products from cake mixes to snack bars. How about a
downloadable pedometer app attached to a low
calorie yogurt or an interactive Olympic schedule on
a box of Wheaties?
http://www.marketingpilgrim.com/2012/02/the-future-of-cereal-packaging-includes-
a-digital-surprise.html
New Products (Continued)
19
New Products:
Paint-on Lithium-Ion Batteries
20
• Food and food packaging have been at the forefront of nanotechnology innovation.
Nanotechnology advancements in food additives and packaging are increasing
shelf-life, improving flavour, and detecting pathogens in a wide variety of foods.
• Packaging enhancements are even extended to the marketability of products
through colour-changing inks, printable RFIDs and printable active displays
(http://www.khlaw.com)
• Use of nanomaterials in food packaging:- examples:
• bottles made with nanocomposites that minimize the leakage of carbon dioxide
out of the bottle; this increases the shelf life of carbonated beverages without
having to use heavier glass bottles or more expensive cans.
• Food storage bins with silver nanoparticles embedded in the plastic. The silver
nanoparticles kill bacteria from any food previously stored in the bins, minimizing
harmful bacteria.
( http://www.understandingnano.com )
iv. Nanomaterials in Food Packaging
21
a. Customisation:
Economic order quantity of one unit
Rapid prototyping and concurrent development
Short setup time
Intelligent use of Options
Mass customisation was defined by Tseng & Jiao (2001,
p. 685) as "producing goods and services to meet
individual customer's needs with near mass production
efficiency"
b. Drawing attention
Bigger, louder, shinier, more
complex
2. Marketing
22
a. Health concerns
b. Environmental concerns
c. Compulsory information
3. Legislation
23
• Cost
• Linked to cost of fossil fuels – will restrict air and road movement
• Africa needs to invest in transport infrastructure – especially road and
rail, then airports and ports
• Regulations
• Restrictions on use of certain organic materials (wood and foodstuff )
• Border control
• Should become less in Africa (free trade zone) Packaging to allow for
easy scanning and inspection to minimize delays.
4. Global movement
24
a. Road
b. Rail
c. Air
d. Water
e. Pipeline
6. Modes of transport
25
a. Demography
b. Purchasing behaviour
c. Social conscience
5 Market Dynamics
26
A. Demography:
Age distribution, culture, education, Urbanisation and
income distribution determines the type of product
being bought.
B. Purchasing habits – determine the quantities and timing
of fmcg (and other) products being bought:
America: Philippines:
5 Market Dynamics
27
Go Green
Avoid
Reduce
Re-use
Recycle
c. Social Conscience:
28
a. Fragility
b. Temperature control
c. Breathing Requirements
Organics and livestock
d. See “requirements of packaging”!
8. Product (Specific) requirements
29
In the line at the supermarket, the cashier told an older woman that she should bring her own grocery bags because plastic bags
weren't good for the environment. The woman apologized to him and explained, "We didn't have the green thing back in my
day." The clerk responded, "That's our problem today. Your generation did not care enough to save our environment." He was right
-- our generation didn't have the green thing in its day.
Back then, we returned milk bottles, lemonade bottles and beer bottles to the shop. The shop sent them back to the plant to be
washed and sterilized and refilled, so it could use the same bottles over and over. So they really were recycled. But we didn't have the
green thing back in our day.
We walked up stairs, because we didn't have an escalator in every store and office building. We walked to the grocery store and didn't
climb into a 300-horsepower machine every time we had to go two blocks. But she was right. We didn't have the green thing in our
day.
Back then, we washed the baby's nappies because we didn't have the throw-away kind. We dried clothes on a line, not in an energy
gobbling machine burning up 240 volts -- wind and solar power really did dry the clothes. Kids got hand-me-down clothes from their
brothers or sisters, not always brand-new clothing. But that old lady is right; we didn't have the green thing back in our day.
Back then, we had one TV, or radio, in the house -- not a TV in every room. And the TV had a small screen the size of a handkerchief. In
the kitchen, we blended and stirred by hand because we didn't have electric machines to do everything for us. When we packaged a
fragile item to send in the mail, we used a wadded up old newspaper to cushion it, not Styrofoam or plastic bubble wrap. Back
then, we didn't fire up an engine and burn petrol just to cut the lawn. We used a push mower that ran on human power. We exercised
by working so we didn't need to go to a health club to run on treadmills that operate on electricity. But she's right; we didn't have the
green thing back then.
We drank from a tap when we were thirsty instead of using a cup or a plastic bottle every time we had a drink of water. We refilled
writing pens with ink instead of buying a new pen, and we replaced the razor blades … instead of throwing away the whole razor just
because the blade got dull. But we didn't have the green thing back then.
Back then, people took the bus and kids rode their bikes to school or walked instead of turning their moms into a 24-hour taxi
service. We had one electrical power point in a room, not an entire bank of sockets to power a dozen appliances. And we didn't need a
computerized gadget to receive a signal beamed from satellites 2,000 miles out in space in order to find the nearest pizza shop.
But isn't it sad the current generation laments how wasteful we old folks were just because we didn't have the green thing back
then?
30
31
Why Worry? Let us take it from this…
32
To this!

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The role of packaging in the supply chain

  • 1. The Role of Packaging in the Supply Chain:  The requirements of packaging  Forces changing the nature of packaging – from a South African perspective 1
  • 2. 1. Protect 2. Identify 3. Keep Together (Unitize) 4. Enable handling 5. Marketing 6. Convey Information 1. Requirements of packaging: 2
  • 4. Requirements of packaging: Identify How does packaging contribute to product identification? Answer: The right packaging combines size, design, and colour to attract potential consumers. http://wiki.answers.com 4
  • 5. Requirements of packaging: Identify COLOR INDICATION The package is designed with a number of indications that ensure fast and reliable product identification: 1. Lid colour indication – four colours represent different diameters: red, blue, green, and gold. 2. The label on the tube’s lid indicates the implant’s diameter and length. 3. A product characterization label is positioned outside the implant’s outer tube. http://www.paltopdental.com/Products/Implant_Packaging5
  • 7. Easier to handle and control. Requirements of packaging: Unitize 7
  • 11. 1. Technology a. Materials b. Manufacturing techniques 2. Marketing a. Customisation b. Drawing attention 3. Legislation a. Health concerns b. Environmental concerns c. Compulsory Information 4. Global movement and regulation 5. Modes of transport 6. Market dynamics 11 2. Forces that are changing the nature of packaging:
  • 12. 1. Technology a. Materials and coatings i. Mycobond – organic filler ( replaces foam) (Mushroom) ii Cellulose Bamboo and Banana iii Organic (compostable) plastics Iv New polymers v Composites (Laminates and coated products) vi Graphene – molecular layer deposition vii Atomic Layer Deposition Coating Technique (Coating) Coming soon – watch this space! 2. Forces that are changing the nature of packaging: 12
  • 13.  Developed in Finland in the 1970’s  Coating which has excellent gas permeation resistance and is particularly suitable for treating packaging for food and pharmaceutical products. Thus far it has been used mainly in microelectronic applications. ALD leads to the manufacture of packaging materials which are thinner, lighter and better sealed than traditional barrier materials. Atomic Layer deposition (ALD) 13
  • 14. Potential Applications(according to Wikipedia) Room temperature distillation of methanol for fuel and human use Single molecule gas detection Graphene nanoribbons Graphene Quantum dots Graphene transistors Graphene optical modulators Integrated circuits Electrochromic devices (Smart glass) Transparent conducting electrodes Reference material for characterizing conductive and transparent materials Thermal Management Materials Solar cells Ultracapacitors Engineered Piezoelectricity Graphene Biodevices Anti bacterial Study of liquids Desalination Graphene 14
  • 15. The packaging is made utilising two different certified compostable films – with a structure of one layer of Innovia Film’s NatureFlex™ NE30 film laminated to Novamont’s Mater-Bi. http://www.packaging- int.com/article/innovative-cereal-pack-uses-natureflex-film.htm Cellulose 15
  • 16. 1. Technology b. Manufacturing techniques i. 3-d printing ii. Print – on –demand – e.g. Windows 7 launch iii. Digital printing vs. Lithographic plate (offset) 2. Forces that are changing the nature of packaging (continued) 16
  • 17. Benefits: Transportation costs to send printed material in > eliminated Warehousing costs to store printed material in inventory > greatly reduced Inventory destruction costs to scrap outdated/excess inventory > greatly reduced Flexibility to update marketing materials on a regular basis at no additional cost > enabled with POD Fast turnaround times for print production > offered with POD Custom/Variable data printing > offered with POD Small volume / specialty print job capability that can be easily integrated into existing fulfilment services for a customer > enabled with POD Environmental sustainability - digital printing does not require film, plate- making chemicals, VOC-emitting and oil-based inks, synthetic proofing materials, or large amounts of make-ready paper. Digital is a cleaner, greener way to print. http://www.fulfillmentamerica.com/pod/print-on-demand-benefits.cfm Digital Printing: Print On Demand 17
  • 18. Studies by the Plastics Federation of South Africa found the carbon footprint of a 1 litre sachet of milk is 60% lower than that of equivalent PET bottle. According to the latest figures by the Milk Producers Organisation of South Africa, only 20% of the annual production of 1,5 billion litres is packaged in sachets, while 70% is packaged in plastic bottles. It requires almost 2,5 times more energy to bottle liquids than using sachets, - South African production plants can save up to 60% of the energy consumption by switching to milk sachet packaging. http://all4women.co.za/food-and-recipes/food-articles/competition-food-tap-it-milk- dispensing-win.html New products 18
  • 19. But digital packaging isn’t only for cereal. General Mills is working on adding assets to their whole line of products from cake mixes to snack bars. How about a downloadable pedometer app attached to a low calorie yogurt or an interactive Olympic schedule on a box of Wheaties? http://www.marketingpilgrim.com/2012/02/the-future-of-cereal-packaging-includes- a-digital-surprise.html New Products (Continued) 19
  • 21. • Food and food packaging have been at the forefront of nanotechnology innovation. Nanotechnology advancements in food additives and packaging are increasing shelf-life, improving flavour, and detecting pathogens in a wide variety of foods. • Packaging enhancements are even extended to the marketability of products through colour-changing inks, printable RFIDs and printable active displays (http://www.khlaw.com) • Use of nanomaterials in food packaging:- examples: • bottles made with nanocomposites that minimize the leakage of carbon dioxide out of the bottle; this increases the shelf life of carbonated beverages without having to use heavier glass bottles or more expensive cans. • Food storage bins with silver nanoparticles embedded in the plastic. The silver nanoparticles kill bacteria from any food previously stored in the bins, minimizing harmful bacteria. ( http://www.understandingnano.com ) iv. Nanomaterials in Food Packaging 21
  • 22. a. Customisation: Economic order quantity of one unit Rapid prototyping and concurrent development Short setup time Intelligent use of Options Mass customisation was defined by Tseng & Jiao (2001, p. 685) as "producing goods and services to meet individual customer's needs with near mass production efficiency" b. Drawing attention Bigger, louder, shinier, more complex 2. Marketing 22
  • 23. a. Health concerns b. Environmental concerns c. Compulsory information 3. Legislation 23
  • 24. • Cost • Linked to cost of fossil fuels – will restrict air and road movement • Africa needs to invest in transport infrastructure – especially road and rail, then airports and ports • Regulations • Restrictions on use of certain organic materials (wood and foodstuff ) • Border control • Should become less in Africa (free trade zone) Packaging to allow for easy scanning and inspection to minimize delays. 4. Global movement 24
  • 25. a. Road b. Rail c. Air d. Water e. Pipeline 6. Modes of transport 25
  • 26. a. Demography b. Purchasing behaviour c. Social conscience 5 Market Dynamics 26
  • 27. A. Demography: Age distribution, culture, education, Urbanisation and income distribution determines the type of product being bought. B. Purchasing habits – determine the quantities and timing of fmcg (and other) products being bought: America: Philippines: 5 Market Dynamics 27
  • 29. a. Fragility b. Temperature control c. Breathing Requirements Organics and livestock d. See “requirements of packaging”! 8. Product (Specific) requirements 29
  • 30. In the line at the supermarket, the cashier told an older woman that she should bring her own grocery bags because plastic bags weren't good for the environment. The woman apologized to him and explained, "We didn't have the green thing back in my day." The clerk responded, "That's our problem today. Your generation did not care enough to save our environment." He was right -- our generation didn't have the green thing in its day. Back then, we returned milk bottles, lemonade bottles and beer bottles to the shop. The shop sent them back to the plant to be washed and sterilized and refilled, so it could use the same bottles over and over. So they really were recycled. But we didn't have the green thing back in our day. We walked up stairs, because we didn't have an escalator in every store and office building. We walked to the grocery store and didn't climb into a 300-horsepower machine every time we had to go two blocks. But she was right. We didn't have the green thing in our day. Back then, we washed the baby's nappies because we didn't have the throw-away kind. We dried clothes on a line, not in an energy gobbling machine burning up 240 volts -- wind and solar power really did dry the clothes. Kids got hand-me-down clothes from their brothers or sisters, not always brand-new clothing. But that old lady is right; we didn't have the green thing back in our day. Back then, we had one TV, or radio, in the house -- not a TV in every room. And the TV had a small screen the size of a handkerchief. In the kitchen, we blended and stirred by hand because we didn't have electric machines to do everything for us. When we packaged a fragile item to send in the mail, we used a wadded up old newspaper to cushion it, not Styrofoam or plastic bubble wrap. Back then, we didn't fire up an engine and burn petrol just to cut the lawn. We used a push mower that ran on human power. We exercised by working so we didn't need to go to a health club to run on treadmills that operate on electricity. But she's right; we didn't have the green thing back then. We drank from a tap when we were thirsty instead of using a cup or a plastic bottle every time we had a drink of water. We refilled writing pens with ink instead of buying a new pen, and we replaced the razor blades … instead of throwing away the whole razor just because the blade got dull. But we didn't have the green thing back then. Back then, people took the bus and kids rode their bikes to school or walked instead of turning their moms into a 24-hour taxi service. We had one electrical power point in a room, not an entire bank of sockets to power a dozen appliances. And we didn't need a computerized gadget to receive a signal beamed from satellites 2,000 miles out in space in order to find the nearest pizza shop. But isn't it sad the current generation laments how wasteful we old folks were just because we didn't have the green thing back then? 30
  • 31. 31 Why Worry? Let us take it from this…