In the complex ecosystem of global supply chains, packaging is as important as the product itself. Remember, packaging is more than just a container. It is common knowledge to associate the quality of the box or container with the quality of the product inside. In a world where packaging could be both functional and symbolic, it is therefore important to think beyond the box. Strategic packaging management in supply chain is not just about the procurement of boxes.
Organisations must realise that packaging materials must be treated more than just product wrappers. The critical importance of packaging in the supply chain extends beyond just product protection. It has the potential to boost operational efficiency and customer satisfaction. Packaging serves as a critical element that supports every stage of the supply chain distribution. It will seek to guarantee the safety of goods during transportation.
Across industries, supply chain professionals could easily miss a critical piece of the bigger picture. Often times, the unsung hero of the intricate supply chain ecosystem is packaging. There is need to change legacy assumptions about packaging management. Robust product packaging represents a highly undervalued supply chain activity. The important significance of packaging extends to the delicate preservation of food freshness. Packaging will serve as a frontline defence against potential damage, contamination and or spoilage during handling, storage and transportation.
It will seek to preserve the product’s intended quality and integrity throughout the supply chain transportation journey. In the complex ecosystem of global supply chains, where products are moved from manufacturers to consumers across diverse geographical locations, the role of packaging transcends the mere protection of goods. Product packaging can therefore be highly effective if applied diligently and intelligently with the idiosyncrasies of customers in mind.
One doesn’t have to look very far to understand the strategic impact of packaging on supply chain management. Proper packaging is critically important for cost management, risk mitigation, quality management and for the overall promotion of operational efficiency in supply chain ecosystem. Proper packaging materials will also serve as the proper first line of protection against various transport management hazards to include potential damage as a result of vibrations and or adverse temperature variation shocks.
Packaging used in industry and commerce was designed with the sole purpose of withstanding possible rigorous handling and environmental factors that may be encountered in transit. It will give protection from adverse weather conditions such as humidity, too much light, and other external factors such as heat. Insulated packaging emerges as a necessity to shield temperature-sensitive items such as food or pharmaceuticals.
Packaging materials such as corrugated boxes, plastic containers and pallets are commonly used in supply chain management because of their durability, strengths and versatility. The idea is to avoid using poor packaging materials that can result in product returns and negative customer reviews which may negatively affect brand equity.
It is important to recognise that packaging, beyond its functionality will be critical in the shaping of brand perception and boosting the level of confidence in the organisation’s products. It is often credited for the creation of a visual appeal that can attract consumers to the organisation’s products. It should also be noted that the structural design and visual appeal of packaging will certainly influence customer perception of the product offering. In a world where product presentations are regarded as more important than ever, packaging will continue to take centre stage. It could easily be regarded as a brand’s silent salesman. It seeks to communicate directly with customers through product design, colour combinations and the content written on the packaging materials. The visual element of packaging plays a critical role in promoting brand recognition. It has been proven beyond reasonable doubt that distinctive packaging can make certain products stand out on crowded shelves which will assist in promoting the brand’s unique identity and commercial value by appealing to the consumer’s emotions.
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Distinctive product packaging can be relied upon as a medium for the dissemination of critical information about the product to include its potential uses, commercial benefits, product ingredients and expiration dates. It can be utilised to reflect a brand’s personality, values, aesthetics, with a view to create a unique identity and a memorable experience for customers. It is increasingly becoming an extended carrier of brand vision and a key component of customer experience. It can help to communicate a brand’s personality by creating a distinctive and eye-catching design.
The colours, materials, and messaging used can have material effects of building emotional appeals to the end users. Beyond just a functional aspect, packaging is a powerful marketing tool that can make or break a product’s appeal to customers. Packaging designs have also been used to good effect through the inclusion of mobile-friendly promotional functions such as QR codes which allows consumers to be more knowledgeable about complementary products on offer.
In an era where sustainability is increasingly at the forefront of consumers’ minds, packaging solutions also serve as a reflection of a brand’s environmental stewardship.
Sustainable practices will be lesser focused on whether the packaging material used can be reused or recycled. The most popular sustainable packaging materials in the logistics industry include recyclable metal containers, recycled fibre boxes, recycled plastic materials and plant-based resins. Packaging can also serve as a key communication tool that conveys a company’s values and responsibility towards conservative efforts which can foster stronger customer loyalty.
Packaging solutions also serve as a true reflection of a product’s environmental stewardship. Some of the popular packaging materials such as cardboard and paperboard are manufactured from renewable materials offering viable alternatives to traditional packaging materials. The goal is to create packaging that can be reused, recycled, or biodegradable without leaving a significant environmental footprint.
Transportation cost savings are a function of a professionally designed optimised packaging solution. It has been proven over the years that overly bulky packaging can increase the dimensional weight and have a negative effect of underutilising cargo space. Supply chain professionals must always remember to maximise every shipment’s payload efficiency. They should be fully aware of the need to optimise how products are palletised and secured to enable sizeable units to be moved with each load.
It is therefore important to engineer packages to fit precisely within storage containers with a view to minimise dead space through the improvement of stacking efficiency. The adoption of appropriate packaging dimensions will enable the reduction of voids, making it easy to maintain stability during cargo movement. It is now common knowledge that lightweight packaging materials such as shrink wrap could easily reduce the weight of shipments. Lightweight materials decrease dimensional weight charges, improve fuel efficiency and allow for safer manual handling.
Designing space-efficient solutions is key in supply chain. Seemingly slight adjustments in a package’s dimensions can dramatically maximise how commodities are packed and moved along the various supply chain nodes. Modular packaging designs facilitate palletisation, improving loading and unloading times while minimising the risk of damage during transit. Proper and efficient packaging design will facilitate easy handling, easy stowing and stacking in a way that maximises the space available throughout the logistics management processes. Proper packaging will also minimise costs of doing business through the avoidance of damage and product returns throughout the movement of the product from the manufacturing plant to the kitchen pantry. Standardised packaging dimensions enable efficient stacking and reduce the need for excessive warehouse space. Attention to detail will result in the setting up of more efficient warehouse layouts which will result in increased throughput for the business.
The use of advanced labelling tools such as RFID tags, QR codes, and barcodes will certainly promote traceability capabilities at every supply chain node. These identifiers will assist supply chain professionals to track the location of cargo and the status of the cargo in terms of inventory levels in real time. It will certainly reduce errors and improve the delivery timelines. The adoption of interactive technologies such as QR codes will also facilitate consumer engagement processes by offering access to useful instructions for the benefit of customer use. There are certain situations where products may have specific compliance and safety requirements, QR codes can be relied upon to communicate this important information to customers. Packaging can also readily provide customer information relating to product usage instructions, product ingredients and nutritional values for the benefit of customers. It will convey care and attention to detail. Going beyond mere protection, packaging emerges as a vital information conduit, displaying critical details for effective product usage.
Packaging technologies can be highly useful in tracking the condition of the contents throughout the supply chain, ensuring product quality is preserved all day long. It must also be noted that proper packaging may assist in the easy identification and tracking of products throughout the supply chain. It will also assist how inventory is tracked and handled, reducing potential transportation inefficiencies. It ensures the safety of goods during transit is guaranteed while also contributing to significant improvements in the tracking and monitoring of inventory.
Customers will be better able to easily track the journey of goods from suppliers to end users, promoting product authenticity and timely delivery. In situations where packaging material is designed in such a way there are clear labelling and barcoding, it will assist with quick recognition of displayed products. This will assist customers to quickly pick, pack and ship products on time within budget. The prevalence of smart tags will facilitate automated inventory counts. Inventory isn’t always top of mind until the shelf is looking empty.
It is important to remember poor packaging strategies are some of the tricky pitfalls that love to eat budgets for breakfast. Packaging failures will cost organisations way more than the original savings. Product packaging is now regarded as a competitive differentiator given that innovation and marketing are no longer enough. It is an important cog in the overall supply chain wheel.
Supply chain professionals recognise there are several benefits associated with robust packaging management, and they all culminate in a healthier balance sheet. It is therefore important to remember packaging will always remain table stakes in a highly competitive environment where intense competition is neither coincidence nor bad luck. Without a robust packaging strategy, your organisation could easily turn out to become the prey of competing rivals.
- Nyika is a supply chain practitioner based in Harare. — [email protected].
