Packaging in Supply Chain Management

Supply chain management serves as the backbone of seamless product delivery. In the process from manufacturer to end consumer, the understated yet vital component is packaging. Its role stretches far beyond the containment of goods and as industries evolve and consumer expectations rise, understanding the significance of packaging within the supply chain is imperative.

The role of packaging in the supply chain and highlight its importance within that journey.

What is the supply chain?

The supply chain is the journey that a product goes on, starting with the manufacturer and ending with the consumer. It often comprises a network of companies, employees and locations and seeks to create a seamless end-to-end process despite the many different stages.

Why is packaging so important to the supply chain?

Packaging is vital to the success of the supply chain. If insufficient packaging is used to contain a product, it could become damaged in transit or storage. This will lead to unsatisfied customers and most likely, returned products, for which expenses will be incurred by the company. This will also reflect badly on the brand and may cause consumers to order elsewhere.

Even if every other stage of the supply chain runs smoothly and without error, if the packaging is not good enough, the entire journey could be wasted. To ensure that the packaging is sufficient, there are several factors to be considered.

Transport:  The main issue with transporting goods is the constant movement from one location to another. The packaging used must be able to withstand all kinds of movement from a bumpy truck journey to being carried or stacked. It must keep the product it is containing safe and secure, and protected against bumps and knocks. A well-designed and robust packaging solution not only contains products but serves as a shield, protecting goods from the turbulence of long-haul shipments, enduring the handling in distribution centers, or withstanding the vibrations of local delivery vehicles.

Storage:  Some items are stored in warehouses during the supply chain journey. It is therefore vital that the packaging can tolerate varying temperatures and will protect the item from the risk of dampness or mold. Suitable packaging will also guard against potential damage such as stacking or unforeseen incidents within storage facilities such as accidents caused by human error.

Sustainability:  In a world becoming ever more environmentally conscious, there is now a huge push to use sustainable packaging. It reinforces a company’s commitment to minimizing their carbon footprint. It also enhances a brand’s reputation and appeal, but most importantly, it takes great steps to reduce carbon emissions and the amount of packaging that is sent to landfills. There are many green packaging solutions that are just as durable as their non-recyclable counterparts and should be taken as a real consideration as we move towards a more sustainable world.

Security:  Packaging serves as a critical barrier against potential threats such as theft, tampering and counterfeiting. Packaging must be robust and durable to ensure that it is neither easy nor tempting to access the product inside.

This can be achieved by using the following methods:

-Tamper-evident seals

-Tracking technologies

-Stringent quality control

-Black packaging to hide what is inside

-Carry out background checks on employees

-Log and track shipments

-Inspect factories and warehouses

-Market, flow, and environment

The packaging system within the supply chain can be summarized into three primary functions. These are market, flow, and environment. These three functions work alongside each other in supply chain management.

Market:  This focuses on brand value and considers factors such as design, communication and layout that will contribute to brand awareness and loyalty. The entire purpose is to increase sales and satisfy customers. It is vital that the packaging is sufficient to match the quality of the product inside, not only for protective reasons but to attract consumer attention. It is important to maintain a good impression of the product’s quality which could easily be altered by poor packaging.

Flow:  The flow function looks at the packaging features that facilitate seamless handling throughout the distribution process. It considers:

-Packaging logistics

-Disposal

-Unpacking

-Distribution

-Return handling

It aims to enhance the value added to the entire chain, focusing on the efficiency and effectiveness of supply chain management with packaging and logistics systems.

Environment:  The environmental factor is becoming increasingly more important and aims to reduce the impact of plastic packaging on the environment and use recyclable or reusable packaging where possible. Many businesses are now opting for more sustainable packaging as businesses are becoming more aware of the significant influence that packaging has on the environmental element of the supply chain.

Do you need help with your packaging?

Quick Pak Inc has 25 years of experience in the packaging industry. Our expertise allows us to support our customers with knowledge, advice and the supply of high-quality packaging which keeps them ahead of the competition time and time again. If you would like to discuss your packaging needs, simply contact us today at 813 242 6995 or sales@quickpakinc.com and we will be happy to help.