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Why product packaging is important in supply chain management?
The packaging industry has quickly moved from brown boxes and cartridges. It is more than just a protective covering; it is a crucial strategy that assists in the company’s effective product marketing. As a business owner, it’s critical to present your goods in a sturdy and appealing package. This will not only help to manage the company, but it will also get customers excited about the product.
Packaging is more than merely “wrapping up” a product; it also plays an important part in product manufacture, procurement, and distribution. Choosing the correct packaging for a B2B or B2C organization is critical for effectively portraying the brand image
Now, what is supply chain management?
The supply chain is a set of procedures that starts with the use of raw materials for goods preparation and ends with the effective movement of these items to their final destination. Product creation, acquiring raw materials, producing products, and logistics all require supply chain management to ensure that there is no disorganization.
An effective supply chain management technique includes product packaging management as well as affordability considerations with little to no error. When there’s an error, there’s a chance that the packaging will fail, putting the supply chain’s efficiency at risk.
The General Flow of Supply Chain Management involves processes such as:
- Procurement: Purchasing and obtaining raw materials.
- Resource Management: Checking inventory for available supplies and refilling materials required for production.
- Fabrication: The planning, arranging, and production of required orders within a certain time frame.
- Order Management: The management and documentation of a customer’s data to ensure a smooth delivery procedure and avoid mistakes.
- Distribution: After streamlining the distribution process to optimize inventory, warehouse management, and timely delivery, the goods are finally delivered.
The Importance of Packaging in Supply Chain Management:
Packaging is required for the protection and secure transportation of products from one location to another. However, it not only protects the product, but also has a significant impact on marketing, sales, and distribution.
Packaging plays an important function in protecting products during supply chain management steps such as transporting products to retailers and delivering products to customers.
A successful business must include packaging in supply chain management and pay close attention to it, ensuring that it is integrated into all manufacturing and management processes up until delivery.
Packaging helps to combat many challenges of the supply chain, some of which are explained below:
1. Protection:
Packaging is critical in protecting items from environmental conditions like temperature, pressure, and loading stress. Before a product is delivered, it must have a layer of production.
2. Storage:
Any manufactured product is not immediately delivered; instead, it is held in storage chambers for days before reaching its final destination.
It is critical to safeguard the product’s quality during storage, and for this reason, the robust and solid packing material is employed to ensure that the contents placed inside are not damaged.
3. Transport:
Packaging can be deformed during transit owing to compression, stacking, and improper handling; therefore, it is critical to use a suitable and strong packaging design that allows the box to be transported without losing its shape or getting untidy.
4. Waste regularizations:
Recycling waste from one supply chain process can help to keep things in order. By piling and reloading, this procedure serves to reduce waste, which can help save money. Eco-friendly packaging is particularly advantageous for environmentally aware clients who return products for recycling. By adopting the appropriate packaging, waste can be regulated and drastically minimized.
Optimization of Packaging for smooth operations:
When packaging is used effectively, it can help a company reduce expenses, increase profits, and improve transportation efficiency. Some of the most important ways to improve packaging are as follows: It has been clarified that by improving packaging, a corporation can alleviate the stress associated with a broken supply chain:
1. Light-weight Packaging:
The number of cartons to be filled in the trolley for transportation is determined by the packaging; if heavy packaging is utilized, it will not only take up more space but will also be difficult to handle. It is advantageous for both the supplier and the manufacturer to choose materials that are low in weight and do not take up a lot of space and energy.
2. Order the correct amount of packaging:
It is not beneficial for the environment or for the company to order excess packaging boxes. It will raise prices because the majority of the extra boxes will be thrown away. Stacking unnecessary boxes will obstruct the supply chain. Your company may order the exact number of boxes it needs and save a lot of money by using custom packaging options.
FINAL THOUGHT:
It is determined that packaging is critical for effective supply chain management and accurate product delivery without putting a strain on financial resources, thereby improving entire operations from procurement through end-user delivery.
