Brief note on Packages, their action part on consumer and firm aspects.

1. Presented by
“The core role of Packages in a Logistics Network”
Sravan.k
INDIAN INSTITUTE OF PLANTATION MANAGEMENT
BANGALORE

2. Logistics
It is the design and management of the system that controls the forward and rivers flows of
materials, services and information into, through, and out of the corporation.
Logistics Management
“Logistics management is that part of the Supply Chain Management process that plans,
implements, and controls the efficient, effective forward, reverse flow and storage of goods,
services, and related information between the point-of-origin and the point-of- consumption in order
to meet customers’ requirements”.
Supporting this flow of goods may be considered as the hard core within logistics. Within this core
the package plays an important role as facilitating the provision of goods to end-users.
Packaging is the field that is mainly concerned with packages. Packaging is as a field according
mainly technically oriented focusing on package form characteristics and concerned with technical
aspects of the package
Packages are used to distribute goods and not services.
Packages are based on empirical findings.
This study is accordingly concentrated with the physical distribution aspects of logistics.

3. In containing materials and other packages and in providing utility
Physical role of packing

4. Communication purpose
AS an information carrier and an information source ( Label)

5. Vital role in marketing
Influencing consumer perceptions, a stimulus to volatile emotions,
Important in marketing mix - Physical Appearance / Packaging

6. Logistics activity Trade-offs
Transportation
Increased package information Decreases shipment delays: increased package information
decreases tracking of lost shipments
Increased package protection Decreases damage and theft in transit, but increases package
weight and transport costs.
Increased standardization Decreases handling costs, vehicle waiting time for loading and
unloading; increased standardization; increases modal choices
for shipper and decreases need for specialized transport
equipment
Inventory
Increased product protection Decreased theft, damage, insurance; increases product
availability (sales); increases product value and carrying costs.
Warehousing
Increased package information Decreases order filling time, labor cost.
Increased product protection Increases cube utilization (stacking), but decreases cube
utilization by increasing the size of the product dimensions.
Increased standardization Decreases material handling equipment costs.
Communications
Increased package information Decreases other communications about the product such as
telephone calls to track down lost shipments.
Packaging Cost Trade-Offs with Other Logistics Activities

7. Packaging is concerned mainly with the furm aspect of packages and this use of packages for distributing
goods is the logistics aspect of a package.
However, packages have an aspect related to customers also.
“Packaging serves two basic functions: logistics and marketing .”
In relation to logistics a package is a specific material form that organizes, protects and identifies goods.
In relation to marketing, packages help
inform and influence professional
customers and consumers, helping to
promote the product and thus support
the transaction of title of the goods.
Using Packages for different Purposes

8. Key factors influencing package design:
1) physical properties (form of the package),
2) dynamic limitations (e.g. acceleration, vibration etc.),
3) environmental limitations ( e.g. temperature, pressure, humidity etc.), and
4) hazardous effects (e.g. radiation, explosives, personnel safety etc.).
These are factors mainly accounted for in package design, but are important
since the form of a package also influences how it is us.

9. Consumer packages (“C-pack”-level): Individually
wrapped products, includes also multi-pack solutions.
Consumer packaging is viewed here as part of a
product.
Distribution packages (“D-pack”-level): Secondary or
multi-unit packages. Crates, cartons that may be
displayed in stores, containing either unpackaged or
consumer packaged products. This form of packaging
may be handled manually. Contains usually C-level
packages.
Transport packages (“T-pack”-level): Tertiary
packages such as containers, large crates, pallets
(including goods on pallets), storage tanks for liquids.
Contains secondary packaged or unpackaged
products.
The form of packages can be classified according to different levels

10. Containment facility (e.g. warehouse compartments, tanks or containers)
T-pack
D-pack
Material
C-pack
C
C C
D
D D
T
T T
Using Packages: Goods as materials at the core covered by layers of packaging
Facts of using packing:
1) Contamination
2) Utility
3) communication
Materials
(or other
smaller
packages
Package
as goods
Containment Utility
Logistics
activities in
the supply
chain
The roles of the package providing containment and utility

11. Thank you