The Packaging logistics

Packaging logistics is a subfield of logistics; it is, so to speak, a link between production and distribution. In addition to packaging materials, packaging logistics also deals with the corresponding processes and structures of packing and packaging; as a result, it is generally identified as a field of work that offers enormous optimization and savings potential. It is to be distinguished from the concept of logistical packaging, which primarily refers to the type of packaging, such as insulated packaging.

Packaging: Definition

Packaging is the wrapping of a product to protect the environment or the product itself, for portioning for production/use and also for transport, storage and marketing. It consists of packaging material (material), packaging (wrapper made from the material) and packaging aids, which in turn enable packaging, sealing and preparation for dispatch. Packaging is the result of a packaging process (see also (Sorter)-packing), which begins with the design of the packaging and, when viewed as a whole, forms a packaging system.

Packaging is a coordinated system of preparing goods for safe, secure, efficient and effective handling, transport, distribution, storage, retailing, consumption and recovery, reuse or disposal combined with maximizing consumer value, sales and hence profit.

Mazen Saghir / The Concept of Packaging Logistics / Lund University

The functions of packaging can be divided into three areas:

  • Logistics (enabling and facilitating transport, protecting the product and the environment, providing information (see also information in intralogistics), see for example RFID)
  • Marketing (format, design, customer commitment and satisfaction)
  • Environment (recyclable, reusable, disposable, reverse logistics)

Packaging logistics: areas of responsibility

Packaging logistics must be coordinated with both warehouse and transport logistics. All three areas have in common that they represent a link between production and distribution (see also distribution center). The control, organization and optimization of a company’s packaging processes are the responsibility of packaging logistics. Packaging logistics coordinates the interests of warehouse and transport logistics and must also work with the packaging manufacturer to develop an optimal solution.

If we understand logistics as a field of activity that plans, implements and controls the corresponding processes and structures, while packaging or packing contains, secures and protects products, as well as advertises and informs – then packaging logistics encompasses an optimization spectrum that extends from production to the end consumer; and even beyond, since the disposal of the packaging must also be considered.

From a company’s point of view, the packaging process is the central element in the picking / packaging / preparing for shipment process chain. In this context, efficient packaging logistics save costs by keeping the times for packing and unpacking as short as possible. Packaging logistics also influences inventory costs by calculating space requirements optimally and selecting packaging types accordingly to achieve the most efficient use of space (see also storage capacity). Overall, a packaging system can be said to extend so far that it leads to a lower transport volume, for example, through space-saving packaging.

Packaging logistics can thus save costs along the value chain and protect the environment. The following example clearly shows how the many facets of packaging logistics (intralogistics, logistics, environment and marketing) are reflected in an integrated solution.

Example nExtCOMbag

The enormous growth in online retailing not only poses logistical challenges but also has a significant impact on the environment. On the one hand, the ordered inventories are often sent in oversized packaging, which means that about one-fifth of the transport volume on the road is just air. On the other hand, plastic bags are increasingly used as shipping packaging, especially in the fashion industry.

This is where the paper-based packaging logistics solution nExtCOMbag comes into play, which is designed for fully automatic packaging. This automated packaging system combines environmental aspects with economic and marketing considerations. It includes logistical aspects such as sorting, filling, document management, packaging material handling, ‘marriage’ of containers and packaging, printing of shipping labels, and the final volume-optimized sealing of single and multi-pos orders. The packaging material (paper) and the space-saving bag character make it a very environmentally friendly solution, which is also characterized by low personnel deployment in the packing area and rapid scaling in low or high load times. In addition, the paper bag allows an individual design, including use of space, which marketing can effectively use for brand communication and corporate branding.

Packaging systems

There are various levels and types of packaging in a packaging system. Each level has its own functions and priorities that can be optimized. In addition, it is crucial for packaging logistics to function smoothly that the levels communicate and interact with each other seamlessly. The most important and common types for (intra)logistics are as follows:

  • Primary packaging (packaging is in direct contact with the product; packaging that you receive as a consumer)
  • Secondary packaging (contains several primary packages)
  • Tertiary packaging (several primary or secondary packages arranged together on a pallet (see EPAL) or in a container)
  • Group packaging (packaging that protects or presents several primary packagings)
  • Transport packaging/industrial packaging (designed to ensure efficient production and distribution by enabling quick and easy processing, transportation and storage of several primary packagings; also designed to prevent transport damage and mishandling)
  • Used packaging (packaging material that is left over after the product has been unpacked)

Packaging logistics and sustainability

Sustainability has become a very important topic in logistics and even more so in packaging logistics. The buzzwords that describe the challenges for which packaging logistics must find solutions are, for example, multi-component packaging, air in the packages and plastic in the sea. The proposed guideline for recycling quotas DIN NA 115 CEN/TC 261 takes into account, on the one hand, the increased demand from end consumers and, on the other hand, the EU’s plastic ban, which has yet to be implemented, as well as a new packaging law.

Note from the editor: Of the total plastic processing in the EU countries, including Switzerland and Norway, 39.7 percent is accounted for by packaging only. In this context, the increased use of reusable solutions is particularly useful. To do this, the appropriate reusable packaging must be selected by fully defining the relevant requirements. These include: dimensions, loads, labeling, intelligent load carriers and special solutions. Likewise, the entire process must be analyzed, including supply chains, circulation times, cleaning and, of course, transport – including the transport of empties. Furthermore, it is necessary to implement container management (track and trace, replacement, deposit system).

Finally, a reusable cycle differs from a linear one-way process;

  • the packaged inventory is transported from the logistics center to the distribution center,
  • and the empties must be returned to the logistics center,
  • where the empties are reused as packaging.

Furthermore, solutions must also be found for recycling and upcycling the materials. Overall, it is clear how holistically packaging logistics must operate.

Summary of packaging logistics

Packaging logistics is to be understood as an integrated approach that combines the processes and structures of logistics with the processes and structures of packaging. In packaging logistics, both areas interact, complement each other and adapt to each other. Thus, the influence of packaging logistics extends from production to transport and the end consumer to the disposal of the packaging material. Specifically, it is about planning, implementing and controlling coordinated packaging systems.

The example given is a development of TUP GmbH & Co. KG, the company that initiated and operates Logistik KNOWHOW.

**Source: plasticseurope.org

If you are interested in the topic of packaging, then read the articles Insulated packaging – maintaining the cold chain in the supply chain and Life cycle assessment.