Short History of Distribution Packaging in the USA Distribution packaging emerged in the 1800s as the industrial revolution blossomed and manufacturers began shipping their goods nationwide via railroad. - Paper did not enter the distribution arena as protective packaging until the early 1900s, when corrugated boxes first appeared as shipping containers. - From the end of World War I to the end of World War II, the use ratio of corrugated to wood containers went from 20/80 to 80/20. - Pallets became popular for industrial use following World War II, and unitizing of high-volume products for shipment accelerated in the 1950s. - Plastics began appearing in the early 1960s with various foams replacing corrugated, rubberized fiber, and wood-based products as interior packaging
Short History of Distribution Packaging in the USA Distribution packaging emerged in the 1800s as the industrial revolution blossomed and manufacturers began shipping their goods nationwide via railroad. - Paper did not enter the distribution arena as protective packaging until the early 1900s, when corrugated boxes first appeared as shipping containers. - From the end of World War I to the end of World War II, the use ratio of corrugated to wood containers went from 20/80 to 80/20. - Pallets became popular for industrial use following World War II, and unitizing of high-volume products for shipment accelerated in the 1950s. - Plastics began appearing in the early 1960s with various foams replacing corrugated, rubberized fiber, and wood-based products as interior packaging
Functions and Goals of Distribution Packaging The functions of distribution packaging can be summarized as follows: Containment Protection Performance Communication - Most distribution packaging should address the following goals: Product protection: Ease of handling and storage Shipping effectiveness Manufacturing efficiency: Ease of identification Customer needs Environmental responsibility
Functions and Goals of Distribution Packaging The functions of distribution packaging can be summarized as follows: Containment Protection Performance Communication - Most distribution packaging should address the following goals: Product protection: Ease of handling and storage Shipping effectiveness Manufacturing efficiency: Ease of identification Customer needs Environmental responsibility
The Cost of Packaging It was estimated that expenditures for all packaging materials, including expendable (one-way) shipping pallets, were approximately $100 billion in 1997. Of this total, about one-third was in the form of distribution packaging. - The largest single segment of distribution packaging is corrugated shipping containers, at approximately 20% of total expenditures and 60% of distribution packaging costs. - It has been estimated that although actual freight claims paid by carriers for damaging goods is approximately $2 billion, the actual cost to them and to shippers is really more than $10 billion per year. - Our goal in package design is to minimize the cost of both packaging and damage
The Cost of Packaging It was estimated that expenditures for all packaging materials, including expendable (one-way) shipping pallets, were approximately $100 billion in 1997. Of this total, about one-third was in the form of distribution packaging. - The largest single segment of distribution packaging is corrugated shipping containers, at approximately 20% of total expenditures and 60% of distribution packaging costs. - It has been estimated that although actual freight claims paid by carriers for damaging goods is approximately $2 billion, the actual cost to them and to shippers is really more than $10 billion per year. - Our goal in package design is to minimize the cost of both packaging and damage
The Package Design Process To develop an optimum distribution package that is both functional and cost-effective, you will need more than just assistance from your packaging suppliers. - Although your experience with a product line and a supplier's experience with packaging materials are both helpful in designing packaging, both of you should consider many factors in addition to the product and the packaging. - Your scope of consideration should include all aspects of the distribution system, including customers, carriers, and distributors, as well as the manufacturing plant, packaging line, warehousing, and shipping. To be successful in distribution package design, take a total-system approach
The Package Design Process To develop an optimum distribution package that is both functional and cost-effective, you will need more than just assistance from your packaging suppliers. - Although your experience with a product line and a supplier's experience with packaging materials are both helpful in designing packaging, both of you should consider many factors in addition to the product and the packaging. - Your scope of consideration should include all aspects of the distribution system, including customers, carriers, and distributors, as well as the manufacturing plant, packaging line, warehousing, and shipping. To be successful in distribution package design, take a total-system approach
Taking a Total System Approach to Package Design Once created, a package has an influence on and is influenced by everyone and everything it encounters. -Most of these encounters affect manufacturing and distribution costs or product integrity, with indirect impact on sales. - A general rule of thumb is that the total cost of transportation is between 3 and 10 times as much as packaging on average for all shipments. A small reduction in package size or weight could mean substantial savings in transportation costs, as well as in handling and storage. - An inverse relationship exists between packaging cost and maintaining product integrity with low damage rates, as shown in Figure 14.1. An increase in packaging costs provides more protection to the contents and therefore lowers the potential for damage
Taking a Total System Approach to Package Design Once created, a package has an influence on and is influenced by everyone and everything it encounters. -Most of these encounters affect manufacturing and distribution costs or product integrity, with indirect impact on sales. - A general rule of thumb is that the total cost of transportation is between 3 and 10 times as much as packaging on average for all shipments. A small reduction in package size or weight could mean substantial savings in transportation costs, as well as in handling and storage. - An inverse relationship exists between packaging cost and maintaining product integrity with low damage rates, as shown in Figure 14.1. An increase in packaging costs provides more protection to the contents and therefore lowers the potential for damage
Taking a Total System Approach to Package Design Figure 16.1 The optimum packaging system balances costs from excessive damagewith the costs of overpackaging
Taking a Total System Approach to Package Design Figure 16.1 The optimum packaging system balances costs from excessive damagewith the costs of overpackaging
Taking a Total System Approach to Package Design The real cost of getting the product safely to market is the sum of packaging and damage. - Optimizing total cost is the true goal of packaging design. - No matter where in the company your packaging design function is located, in engineering, manufacturing, shipping, or elsewhere, try to include all factors in a total-system approach for an optimum design. The Protective Package Concept Product + Package = Distribution environment Figure 16.2 depicts the consequences of an imbalance in this equation, showing what happens when a product plus its package are not exactly what is needed to survive in the distribution process
Taking a Total System Approach to Package Design The real cost of getting the product safely to market is the sum of packaging and damage. - Optimizing total cost is the true goal of packaging design. - No matter where in the company your packaging design function is located, in engineering, manufacturing, shipping, or elsewhere, try to include all factors in a total-system approach for an optimum design. The Protective Package Concept Product + Package = Distribution environment Figure 16.2 depicts the consequences of an imbalance in this equation, showing what happens when a product plus its package are not exactly what is needed to survive in the distribution process
Taking a Total System Approach to Package Design Figure 16.2 Protective package concept
Taking a Total System Approach to Package Design Figure 16.2 Protective package concept
Taking a Total System Approach to Package Design Severity is the quantitative measure of the environment, which can be anyone or a combination of hazards in distribution. hazards severity the rough-handling hazard to 30 inches of drop a 20-pound package the compression (storage) hazard 10 packages high in warehousing the high temperature hazard 1300 F. Product represents the measured level of resistance to damage of the product. - An optimum solution: the product's measured level of damage resistance plus the packaging's measured abilities to protect the product are exactly equal to the expected environmental hazard(s)
Taking a Total System Approach to Package Design Severity is the quantitative measure of the environment, which can be anyone or a combination of hazards in distribution. hazards severity the rough-handling hazard to 30 inches of drop a 20-pound package the compression (storage) hazard 10 packages high in warehousing the high temperature hazard 1300 F. Product represents the measured level of resistance to damage of the product. - An optimum solution: the product's measured level of damage resistance plus the packaging's measured abilities to protect the product are exactly equal to the expected environmental hazard(s)