Logistics is in the news, and for good reason. In the new global economy, large international corporations can transact business in an instant in small communities millions of miles away. Logistics is what enables businesses large, medium and small businesses to participate in this incredibly active marketplace.
WikiAnswers describes logistics as: “The complete process involving planning, managing and controlling the flow of goods and services, information, real-time data and human resources from the point of origin to the point of destination. There is hardly any manufacturing or marketing activity that can be achieved without the support of an effective logistical department.”
To be effective, a logistics department must engage a number of important aspects:
- Material handling
- Warehousing
- Information
- Transportation
- Packaging
- Inventory management
“The primary duty of an effective logistics system is to ensure geographical repositioning of unfinished goods, and it is also concerned with the finished inventories of the organization being at the required place at the lowest possible cost.”
Material handling, warehousing, information, transportation, packaging and inventory management determine an enterprise’s ability to participate effectively in the global marketplace.
At the heart of logistics is packaging. Without a sound packaging plan, a smooth logistical operation is impossible. Packaging makes material handling, warehousing, information, transportation and inventory management work.
About Packaging
Some companies develop and handle their own packaging solutions. Many companies outsource packaging solutions. In addition to the industries mentioned above, packaging plays an important role in every delivery and storage solution and is important from large, industrial equipment to small items distributed by pharmaceuticals.
21st century packaging options include:
- Air shrink packaging
- Skin packaging
- Stretch wrapping
- Overwrapping
- Blister packaging
- Clamshell packaging
Custom design packaging is gaining in popularity because it is an effective way to promote the brand. In today’s market, delivery speed is a prime consideration for all purchasers. Rapid delivery is expedited when proper packaging processes are in place. The goal is to handle materials as little as possible. With proper information and labeling, handling is decreased from receipt of materials to shipment. This saves, time, money and reduces risk.
Benefits of Proper Packaging
- Knowing that goods received are safe and secure.
- Knowing the goods shipped are safe and secure.
- Knowing that hazardous materials conform with best practices shipping.
- Ability to reuse industrial packaging materials.
- Extend life of shipped goods.
- Increase effectiveness of storage facility.
Understanding the Cost of Best Practice Packaging
The cost of 21st century packaging solutions depends upon several factors including:
- Size of package.
- Type package.
- Storage requirements.
- Shipping requirements.
- Type packaging materials used.
- Nature of content.
- Method of transportation.
- Labeling requirements.
Today’s distribution centers can reap large savings by the use of professional packaging equipment and through economies of scale. Anyone who has received or shipped goods to Amazon.com understands how effective today’s packaging solutions, materials and processes can be. Businesses charged with warehousing responsibilities, distribution and careful handling have no choice but to invest in reliable, new-age packaging solutions that are re-usable.
Managing Multiple Products
The challenge for many of today’s manufacturers, warehouses and distributors is handling multiple products that must meet unique shipping and receiving protocols. Products with short shelf lives, like perishables, have very different packaging solutions than do audio-video equipment. In some cases, “First-in, First-out” (FIFO) policy is important. In the case of audio-video equipment, FIFO is not as necessary.
In cases where “Last-in, Last-out” (LIFO) and FIFO are the norm, labeling with information about the product is essential. In many of todays processing centers and warehouses, receivers are requiring shippers to label and pack packages with precise instructions. This places a burden on the shipper but can save the receiving facility huge amounts of time and money and streamline the entire distribution system.
Best Practices In Packaging
What may work well for one company and one product may not be as effective for other products offered by the same company. However, branding packaging products is a best practice that can turn packaging into a money-making, marketing tool.
Best packaging practice include:
- Readable informational labeling.
- Implementation of Advance Shipping Notification (ASN) procedures.
- Cross-docking directly to shipping.
- Implementation of a vendor compliance protocol.
- Retention of a permanent vendor compliance manager.
- Automatic data collection technology.
- Pre-planned picking procedures.
- Zoning of warehousing operations.
- Recording every product movement as a separate transaction.
- Implementation of a hands-free selection process.
- Emphasize minimal touches policy.
- Implement print and label systems.
- Implement dynamic slotting systems.
- Determine a definite policy for returns.
- Implement an ongoing cycle count protocol.
- Constant revaluation of the entire distribution chain.
Businesses that follow these recommendations are prepared to grow and win in the global distribution marketplace. Businesses that fail to meet these standards will struggle to keep pace with the competition.
For more information about how Marpak Extrusions can help with your packaging needs, contact us here or give us a call on 0113 277 5518
