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The role of packaging in the supply chain

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The role of packaging in the supply chain

  1. 1. The Role of Packaging in theSupply Chain: The requirements of packaging Forces changing the nature ofpackaging – from a SouthAfrican perspective1
  2. 2. 1. Protect2. Identify3. Keep Together (Unitize)4. Enable handling5. Marketing6. Convey Information1. Requirements of packaging:2
  3. 3. Requirements of packaging: 1. Protect3
  4. 4. Requirements of packaging: IdentifyHow does packaging contribute to product identification?Answer:The right packaging combines size, design, and colour to attract potential consumers.http://wiki.answers.com4
  5. 5. Requirements of packaging: IdentifyCOLOR INDICATIONThe package is designed with a number of indications that ensurefast and reliable product identification:1. Lid colour indication – four colours represent differentdiameters: red, blue, green, and gold.2. The label on the tube’s lid indicates the implant’s diameter andlength.3. A product characterization label is positioned outside theimplant’s outer tube.http://www.paltopdental.com/Products/Implant_Packaging5
  6. 6. Requirements of packaging: Identify6
  7. 7. Easier to handle and control.Requirements of packaging: Unitize7
  8. 8. Requirements of packaging:Enable Handling8
  9. 9. Requirements of packaging:Enable Marketing9
  10. 10. Requirements of packaging:Convey Information10
  11. 11. 1. Technologya. Materialsb. Manufacturing techniques2. Marketinga. Customisationb. Drawing attention3. Legislationa. Health concernsb. Environmental concernsc. Compulsory Information4. Global movement and regulation5. Modes of transport6. Market dynamics112. Forces that are changing thenature of packaging:
  12. 12. 1. Technologya. Materials and coatingsi. Mycobond – organic filler ( replaces foam)(Mushroom)ii Cellulose Bamboo and Bananaiii Organic (compostable) plasticsIv New polymersv Composites (Laminates and coated products)vi Graphene – molecular layer depositionvii Atomic Layer Deposition Coating Technique (Coating)Coming soon – watch this space!2. Forces that are changing thenature of packaging:12
  13. 13.  Developed in Finland in the 1970’s Coating which has excellent gas permeation resistance and isparticularly suitable for treating packaging for food and pharmaceuticalproducts. Thus far it has been used mainly in microelectronicapplications. ALD leads to the manufacture of packaging materialswhich are thinner, lighter and better sealed than traditional barriermaterials.Atomic Layer deposition (ALD)13
  14. 14. Potential Applications(according to Wikipedia)Room temperature distillation of methanol for fuel and human useSingle molecule gas detectionGraphene nanoribbonsGraphene Quantum dotsGraphene transistorsGraphene optical modulatorsIntegrated circuitsElectrochromic devices (Smart glass)Transparent conducting electrodesReference material for characterizing conductive and transparent materialsThermal Management MaterialsSolar cellsUltracapacitorsEngineered PiezoelectricityGraphene BiodevicesAnti bacterialStudy of liquidsDesalinationGraphene14
  15. 15. The packaging is made utilising two different certifiedcompostable films – with a structure of one layer ofInnovia Film’s NatureFlex™ NE30 film laminated toNovamont’s Mater-Bi. http://www.packaging-int.com/article/innovative-cereal-pack-uses-natureflex-film.htmCellulose15
  16. 16. 1. Technologyb. Manufacturing techniquesi. 3-d printingii. Print – on –demand – e.g. Windows 7 launchiii. Digital printing vs. Lithographic plate (offset)2. Forces that are changing thenature of packaging (continued)16
  17. 17. Benefits:Transportation costs to send printed material in > eliminatedWarehousing costs to store printed material in inventory > greatly reducedInventory destruction costs to scrap outdated/excess inventory > greatlyreducedFlexibility to update marketing materials on a regular basis at no additional cost> enabled with PODFast turnaround times for print production > offered with PODCustom/Variable data printing > offered with PODSmall volume / specialty print job capability that can be easily integrated intoexisting fulfilment services for a customer > enabled with PODEnvironmental 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.cfmDigital Printing: Print On Demand17
  18. 18. Studies by the Plastics Federation of South Africa found thecarbon footprint of a 1 litre sachet of milk is 60% lower than thatof equivalent PET bottle. According to the latest figures by theMilk Producers Organisation of South Africa, only 20% of theannual production of 1,5 billion litres is packaged insachets, while 70% is packaged in plastic bottles.It requires almost 2,5 times more energy to bottle liquids thanusing sachets, - South African production plants can save up to60% of the energy consumption by switching to milk sachetpackaging.http://all4women.co.za/food-and-recipes/food-articles/competition-food-tap-it-milk-dispensing-win.htmlNew products18
  19. 19. But digital packaging isn’t only for cereal. GeneralMills is working on adding assets to their whole line ofproducts from cake mixes to snack bars. How about adownloadable pedometer app attached to a lowcalorie yogurt or an interactive Olympic schedule ona box of Wheaties?http://www.marketingpilgrim.com/2012/02/the-future-of-cereal-packaging-includes-a-digital-surprise.htmlNew Products (Continued)19
  20. 20. New Products:Paint-on Lithium-Ion Batteries20
  21. 21. • Food and food packaging have been at the forefront of nanotechnology innovation.Nanotechnology advancements in food additives and packaging are increasingshelf-life, improving flavour, and detecting pathogens in a wide variety of foods.• Packaging enhancements are even extended to the marketability of productsthrough 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 dioxideout of the bottle; this increases the shelf life of carbonated beverages withouthaving to use heavier glass bottles or more expensive cans.• Food storage bins with silver nanoparticles embedded in the plastic. The silvernanoparticles kill bacteria from any food previously stored in the bins, minimizingharmful bacteria.( http://www.understandingnano.com )iv. Nanomaterials in Food Packaging21
  22. 22. a. Customisation:Economic order quantity of one unitRapid prototyping and concurrent developmentShort setup timeIntelligent use of OptionsMass customisation was defined by Tseng & Jiao (2001,p. 685) as "producing goods and services to meetindividual customers needs with near mass productionefficiency"b. Drawing attentionBigger, louder, shinier, morecomplex2. Marketing22
  23. 23. a. Health concernsb. Environmental concernsc. Compulsory information3. Legislation23
  24. 24. • Cost• Linked to cost of fossil fuels – will restrict air and road movement• Africa needs to invest in transport infrastructure – especially road andrail, 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 foreasy scanning and inspection to minimize delays.4. Global movement24
  25. 25. a. Roadb. Railc. Aird. Watere. Pipeline6. Modes of transport25
  26. 26. a. Demographyb. Purchasing behaviourc. Social conscience5 Market Dynamics26
  27. 27. A. Demography:Age distribution, culture, education, Urbanisation andincome distribution determines the type of productbeing bought.B. Purchasing habits – determine the quantities and timingof fmcg (and other) products being bought:America: Philippines:5 Market Dynamics27
  28. 28. Go GreenAvoidReduceRe-useRecyclec. Social Conscience:28
  29. 29. a. Fragilityb. Temperature controlc. Breathing RequirementsOrganics and livestockd. See “requirements of packaging”!8. Product (Specific) requirements29
  30. 30. In the line at the supermarket, the cashier told an older woman that she should bring her own grocery bags because plastic bagswerent good for the environment. The woman apologized to him and explained, "We didnt have the green thing back in myday." The clerk responded, "Thats our problem today. Your generation did not care enough to save our environment." He was right-- our generation didnt 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 bewashed and sterilized and refilled, so it could use the same bottles over and over. So they really were recycled. But we didnt have thegreen thing back in our day.We walked up stairs, because we didnt have an escalator in every store and office building. We walked to the grocery store and didntclimb into a 300-horsepower machine every time we had to go two blocks. But she was right. We didnt have the green thing in ourday.Back then, we washed the babys nappies because we didnt have the throw-away kind. We dried clothes on a line, not in an energygobbling machine burning up 240 volts -- wind and solar power really did dry the clothes. Kids got hand-me-down clothes from theirbrothers or sisters, not always brand-new clothing. But that old lady is right; we didnt 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. Inthe kitchen, we blended and stirred by hand because we didnt have electric machines to do everything for us. When we packaged afragile item to send in the mail, we used a wadded up old newspaper to cushion it, not Styrofoam or plastic bubble wrap. Backthen, we didnt fire up an engine and burn petrol just to cut the lawn. We used a push mower that ran on human power. We exercisedby working so we didnt need to go to a health club to run on treadmills that operate on electricity. But shes right; we didnt have thegreen 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 refilledwriting pens with ink instead of buying a new pen, and we replaced the razor blades … instead of throwing away the whole razor justbecause the blade got dull. But we didnt 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 taxiservice. We had one electrical power point in a room, not an entire bank of sockets to power a dozen appliances. And we didnt need acomputerized gadget to receive a signal beamed from satellites 2,000 miles out in space in order to find the nearest pizza shop.But isnt it sad the current generation laments how wasteful we old folks were just because we didnt have the green thing backthen?30
  31. 31. 31Why Worry? Let us take it from this…
  32. 32. 32To this!

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