Chp.

Packaging

Chp. 8 Prof. Ankita Rastogi

 Introduction to Packaging
➢ Packaging is the basic necessity of every product.

➢ Without packaging, the product cannot be stored or moved from one location
to another.

➢ Packaging provides an identity to the product.

➢ 'Packaging is the process of providing a protective and informative

covering to the product in such a way that it protects the product during
material handling, storage and movement and also provides useful
information to all the concerned parties about the contents of the
package.'

➢ Packaging is generally classified in two types, logistical packaging and

consumer packaging.
➢ Logistical packaging is for the purpose of Logistical functions such as
material handling, Storage, transportation etc.

The logistics operations will be easier if packaging satisfies following

criteria:

✓ It should be strong enough to withstand pressure, shocks and vibration

during product movement and loading/unloading operations.

✓ Uniform packaging helps in maximizing the space and uniform size helps in
easy handling.

✓ Information in barcode format enables faster communication.

✓ It is convenient and suitable for mechanised handling systems such as

conveyors, Forklift etc.
➢ Consumer packaging is from the point of sale. Its role is to attract the
consumer and provide them with relevant product information.

Consumer packaging should satisfy the following criteria:

✓ It should be attractive to catch the attention.

✓ It should be tamper-proof so that it can be protected from adulteration of any

kind.

✓ The packaging should be easy to open.

✓ It should be informative such as price, quantity, weight and dimensions,

product characteristics, date of manufacturing, batch code, expiry date,
customer care centre number etc.
 Objectives of Packaging
1) Protection: from spoilage or damages and preserve the original qualities of
the product.

2) Storage: right packaging makes it easy to handle and store the product on
shelf and pallets. Odd size of packaging occupies more space, consumes more
time and increases operating cost.

3) Information: packaging provides information like name of manufacturer,

product ingredients, direction for use, price, date of production and expiry
date, special instruction if any, quantity, safety measures, etc. such
information is very useful to transporter, warehouse keeper and consumer in
handling and using product with safety and security.

4) Product Differentiation: a unique design, size and colour of packaging

attracts attention and generate sales. From customers point of view, packaging
is visible and most distinguishing factor.
5) Promotion: product packaging is a type of silent advertising and good
packaging with attractive colours and graphics attract customers attention and
leads to increased sales.

6) Distribution: good packaging is important for safe and easy handling of

materials, easy to store, transport and convenient to consumers for carrying.

From Logistical point of view packaging objectives are:

a) To decide packaging design so as to minimise cost and optimise use of

packaging.

b) To attend issues relating to proper reuse, recycle and disposal of packing

material after product is consumed.

c) To find out special needs of packaging in Export-Import trade.

d) Logistics packaging makes transportation safe and secure and protects during
transit.
 Functions/benefits of Packaging
1) Physical protection:

Major function is to protect the product from any kind of damage while
moving and being stored. It provides protection from shocks during
transportation, vibration, compression, shocks of handling and moving, etc.

2) Environmental protection:

From certain environmental factors such as temperature, humidity and

contamination. For example in order to keep the contents of the product clean,
fresh and safe for the expected shelf life, it may have to be protected from
oxygen, water vapours, dust, etc.

3) Helps to improve material handling efficiency:

Proper packaging facilitates easy material handling during transportation,

warehousing and storage. Thus, all logistical operations are affected by
packaging.
4) Cube minimization:

Cube minimization involves reducing the space occupied by the product/

packaging thereby improving utilisation of cubic space. For example: it may
happen that the truck is cubed out, that means the truck is fully utilised space
wise, but not fully utilise weight wise. This may be due to inappropriate
packaging.

5) Weight minimization:

It involves reducing weight of the consignment to fully utilise capacity of the

truck. For example it may happen that the truck is fully utilised weight wise
but not fully utilised space wise. Another example is liquid in glass bottles.
Here, liquid may be packed in plastic bottles in order to reduce the weight.

6) Facilitates handling and using:

Packaging facilitates easy handling and usage for the user. For example fruit
juices in tetra packs, oil cans instead of oil packets.
7) Packaging Facilitates storage and reuse: For example Ink cartridges for
printers refill packs, bottles, etc.

8) Grouping goods into convenient unit for distribution:

Small objects are typically grouped together in one packet. Example a single box
of 1000 pencils requires less physical handling than 1000 single pencils.

9) Reduce pilferage (stealing) opportunity:

Packaging helps to reduce pilferage opportunities. for example pilfer proof caps,
pilfer proof seals helps to reduce pilferage opportunities.

10) Communication:

Packages and labels communicate how to use, transport, recycle or dispose of the
package or product. Content identification - what does this contain? Product,
manufacturer, Universal code etc. with high visibility. Tracking - barcodes and
scanners. Handling instructions - fragile, which side up? temperature
restrictions, environment concerns, potential dangers etc.
 Design consideration in packaging
Design of packaging needs careful consideration from logistics and marketing
perspective. Some of these important considerations are discussed below:

❖ Material handling:

Packaging ensures convenience handling of goods. Before the goods are finally
dispatched, there is loading and unloading which may cause harm to the product.
Packaging shall be made in such a manner that it shall not lead to any harm of the
product on the contrary it should be quite easy to pick and move.

❖ Warehousing:

The important perspective is to see that finished goods which are packed shall take
minimum space during storage in warehouse. Packaging with some odd size may take
more space and cause more expenses for the company. Packaging shall be done in
such a way that easy stacking is possible and minimum floor space is occupied by the
product.
❖ Transportation:

Transportation is one of the major cost component of total logistics cost.

Transportation cost depends upon density and Stowability.

Density refers to weight and space, while

Stowability means considering size and shape.

Packaging needs to be done in such a way that overall size, weight and space
requirement during transportation is minimum which leads to reduction in cost
of transportation.

For example: initially Alphonso mangoes were packed in heavy wooden crates
which considerably increased the cost of transportation. As a result of which it
is now been replaced with cardboard boxes so as to reduce cost of
transportation.
❖ Communication:

Labels on the packs clearly communicate to the user about how to handle the
product, how to use and re-use the same, what precautions shall be taken while
using and maybe some more important information alike. So, while designing
the package, even labelling shall be duly taken care of.

❖ Price:

Another important consideration that need to be made is regarding price. Price

of the package shall not make the overall cost of the product so high that
refrains the buyer from buying and using the products. Packaging cost shall be
minimum. However, minimum cost does not mean that company shall
compromise over the quality and safety factors.
 Types of packaging material
❑ Corrugated fibreboard (cardboard):

They are typically used for packing consumer durable products such as washing
machines, refrigerators, television sets, etc. They are lightweight and are very
convenient to handle while packaging, loading and unloading. these boxes are
available in various shapes, sizes, designs and colour as per the requirement of
the product. corrugated boxes are completely recyclable in nature which make
them eco friendly.

❑ Plastics:

This is the most common packaging material and, at the same time difficult to
dispose of. The commercial success of plastics as a packaging material is due to
a combination of flexibility, strength, lightness and stability. plastics bags and
plastic containers are widely used in logistical packaging. plastic strapping is
used to contain or unitize a load so that multiple smaller containers can be
handled as a single large container.
❑ Steel:
Steel is a unique packaging material having exceptional performance capabilities and
tremendous environmental benefits. steel is basically used for packing such products
which require greater protection during transportation, warehousing and material
handling. Steel is the most recycled packing material. only Steel has a recycling rate
off over 70% highest level of all. Steel can be used and recycled infinitely.

❑ Wood:
Is one of the most common packing material. Wood is basically used for construction
of boxes, creates, pallets and other load handlers. wooden boxes pallets are often used
for heavy duty packaging when high strength is needed for heavy and difficult loads.

❑ Glass:
Glass is an ideal packaging material for foods, especially liquids. It is inalterable,
strong and easy to recycle. Glass is 100% recyclable and can be recycled endlessly
without loss in quality or purity. Glass as a pharmaceutical packaging material has
gained huge important in past few years. glass is the trusted and proven packaging
material for health, taste and environment.
 Packaging cost
➢ Packaging cost depends on type and nature of product (necessity/ luxury,
heavy/ light, fragile, liquid/ solid, hazardous, capital goods, spare parts and
components).

➢ Physical dimensions of the product (height, weight, length, width)

➢ The unit value of the product.

➢ A product go through multiple hands, trucks, distribution centres- more the

operators in supply channel, higher will be storage and transportation cost.

➢ Order volume and bulk order cost less, Marketing cost (advertising and
promotion)

➢ Manual or mechanical handling, mode of transportation (rail, Road, sea, air),

statutory rules and regulations, seaworthy packaging.
➢ Packaging cost generally includes cost of packing material, equipment's, cost
incurred on filling, sealing labelling, strapping and unitization.

➢ Labour cost, direct and indirect overhead cost are also considered as part of
packaging cost.

➢ It is equally important to consider expenses incurred on creation cost

(marketing, sales promotion) for creating new customers.

Generally the packaging creation cost includes:

➢ Cost of package, Development cost of package design

➢ Storage and handling cost of empty packages

➢ Packaging operation cost (labelling, filling, sealing)

➢ Damage during packaging process.