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Definition


In order to appreciate logistical packaging, we must know what it is and how it functions. Logistical packaging has been defined in several ways.


A coordinated system of preparing goods for transport, distribution, storage, retailing and end-use.
A means of ensuring safe delivery to the ultimate consumer in sound condition at minimum total overall cost.
A techno-economic function aimed at minimizing costs of delivery while maximizing sales (and hence profits).




Definition 1 and 2 indicate that logistical packaging contains and protects during transport and has an economic aspect. To ensure delivery, the package must at least provide information as to the address of the recipient, describe the product and perhaps explain how to handle the package and use the product.



Logistical packaging has also been described as a ‘complex, scientific, artistic and controversial segment of businesses’. Logistical packaging is certainly dynamic and is constantly changing. New materials need new methods, new methods demand new machinery, new machinery results in better quality, and better quality opens up new markets which require changes in packaging. The cycle then starts again.



Thus, at the most fundamental, logistical packaging contains, protects and preserves, and informs. At its most sophisticated, it provides two more functions – those of selling and convenience.



In a world where the quality of products is high, in many instances almost the only difference between competitive brands lies in the logistical packaging and only logistical packaging influences the selling operations.




From the definition number 3, ‘logistical packaging is a techno-economic function aimed at minimizing costs of delivery while maximizing sales (and hence profits)’. At this level, the value of – or even the need for – the added functions is controversial, and as a result opinions vary as to whether packaging is a waste of material and energy, or is properly utilized for the conservation of goods and reduction of labour. There is no doubt, however, that in the post-fuel crisis world in which we now lives, where materials are more expensive principally because of extra cost of energy, we may well need to change our criteria of judgment. Containment, protection and information will always be essential in any packaging and these functions are basically conservational.




How much we should spend on the ‘selling’ and ‘convenience’ functions and how far they are regarded as necessary, is a matter for discussion.

Question For the Blog

What are the rationales for the logistical packaging for the purpose of effective warehouse operation?

Rationales - (Fundamen
tal reasons; the basis.)


Answer: Logistical packaging is important to effective warehouse operation as it could enhance certain factors. The function and purpose of logistical packaging can explain how it help varies factors. Firstly it is to coordinate a system of preparing goods for transport, distribution, storage, retailing and end-use. It is a means of ensuring safe delivery of goods to the ultimate consumer in sound condition at minimum total overall cost. It aims to minimizing costs of delivery while maximizing sales and profits. This is similar to a warehouse objective. Therefore logistical packaging is part of the reason to effective warehouse operation. Furthermore logistical packaging function is integrated to the warehouse objective. The various functions of packaging are divided into primary, secondary and tertiary functions. With the primary functions concerning the technical nature of the packaging, secondary functions relate to communications. Primary and secondary are divided into the following sub-functions:


Primary functions
1) Protective functions
2) Storage functions
3) Loading & transport functions


Secondary functions
1) Sales function
2) Promotional function
3) Service Function
4) Guarantee function

Protective functions

The protective function of packaging essentially involve protecting the contents from the environment and vice versa. The inward protective function is intended to ensure full retention of the utility value of the packaged goods. The packaging is thus intended to protect the goods from loss, damage and theft.



In addition, packaging must also reliably be able to withstand the many different static and dynamic forces to which it is subjected during transport, handling and storage operations. The goods frequently also require protection from climatic conditions, such as temperature, humidity, precipitation and solar radiation, which may require "inward packaging measures" in addition to any "outward packaging measures".



The outward protection provided by the packaging must prevent any environmental degradation by the goods. This requirement is of particular significance in the transport of hazardous materials, with protection of humans being of primary importance. The packaging must furthermore as far as possible prevent any contamination, damage or other negative impact upon the environment and other goods.



The inward and outward protective function primarily places demands upon the strength, resistance and leak proof properties of transport packaging.


Storage function



The packaging materials and packaging containers required for producing packages must be stored in many different locations both before packaging of the goods and once the package contents have been used. Packaging must thus also fulfill a storage function.


Loading and transport function



Convenient goods handling entails designing transport packaging in such a manner that it may be held, lifted, moved, set down and stowed easily, efficiently and safely. Packaging thus has a crucial impact on the efficiency of transport, handling and storage of goods. Packaging should therefore be designed to be easily handled and to permit space-saving storage and stowage. The shape and strength of packages should be such that they may not only be stowed side by side leaving virtually no voids but may also be stowed safely one above the other.



The most efficient method of handling general cargo is to make up cargo units. Packaging should thus always facilitate the formation of cargo units; package dimensions and the masses to be accommodated should where possible be tailored to the dimensions and load-carrying capacity of standard pallets and containers.



Where handling are to be entirely or partially manual, packages must be easy to pick up and must be of a suitably low mass. Heavy goods must be accommodated in packages which are well suited to mechanical handling. Such items of cargo must be forkliftable and be provided with convenient load-bearing lifting points for the lifting gear, with the points being specially marked where necessary (handling marks).




The loading and transport function places requirements upon the external shape of the package, upon the mass of the goods accommodated inside and upon the convenient use of packaging aids. The strength of the package required for stowing goods on top of each other demonstrates the close relationship between the loading and transport function and the protective function. The above three functions explains further why logistical packaging is rationales. The three primary functions fit into the warehouse operation objective of effective use of equipment, maximizing accessibility of all items and maximizing protection of all items. In addition to this it will help to reduce cost with the latest technology and increase customer service. In the long run logistical packaging is one process that lead to effective warehouse operation.



Wednesday, January 9, 2008, 8:20 AM


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Tan Jun Hong (M)
Tan Shu Ming (F)
Kevin Xu (M)
Temasek Polytechnic
Logistics Operations Management
T03

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