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Supply Change Management and Packaging

As the packaging industry evolves, so does the very concept of packaging. Back in the day, people would refer only to bags, boxers and perhaps containers of products as packaging. Today, things have changed and now we understand that packaging is not just a box or a carton, but a system that involves the coordinated preparation of goods or products for safe, cost-effective, and efficient flow throughout the supply chain in order to maximize consumer value and, as consequence, profitability too. (Related Topic: protective packaging, VCI paper, moisture barrier bags)

Because of the massive impact of packaging on business, this system has become a cornerstone for supply chain management. Proper packaging not only protects products from damage, but also allows for an efficient distribution process, better communication with consumers, and more efficient product promotion in an increasingly competitive marketplace. Actually, packaging design is now a clearly mature communication discipline on its own, which is why clients have started to realize that packaging is a critical and central element in the creation of an effective brand identity.

But going beyond the marketing related aspects of packaging, the logistics side of the packaging is just as important in order to achieve a successful supply chain management, not to mention the production and environmental factors.

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In terms of logistics, it is absolutely necessary that packages that can be easily handled throughout all processes and for the consumers while still meeting the industry standards, like military specification or mil-spec packaging. Nowadays, the environmental factor must be thrown into the mix as more and more consumers are concerned with the environmental impact of the products they purchase. Therefore, packaging that is eco-friendly or, at least environmentally conscious, has become fundamental for many businesses operations.

Market, flow, and environment are the three primary functions that interact with each other in the supply chain management space. This interaction has been studied in-depth recently, and the findings show that packaging is instrumental for marketing campaigns that have a direct impact on consumer attention, product positioning, evaluation and categorization, usage behavior, brand communication, and intention to purchase.

Another finding confirmed that the flow function of packaging is key to guarantee internal material flows, packaging logistics, distributions, disposal, unpacking, and return handling.

Thanks to these findings, now we understand why packaging logistics must focus on the synergy achieved by mixing packaging and logistics systems with efficiency and effectiveness.

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