Introduction

During the packaging origins, this was only used as a mean of transporting goods, without any
consideration for what the consumer needed. Nowadays, with globalization and the great
amount of products available, companies have to use packaging as a source of advantage
against their competition. They should be able to transport the goods from the point of
production to the shops and to the end consumer, taking into consideration that the journey may
involve different countries and even continents. Packaging can also be a tool for organisations
to promote their products and offer differentiation to their customers (Emblem & Emblem 2012,
p. 3).
Literature Review
Importance of Packaging in Supply Chain
The significance of packaging comes from the role it plays in the transference of finished goods
from the manufacturer to the distribution centre and to customers later on. Packaging is the way
of making sure that the product will be delivered safely to its ultimate consumer in an
appropriate condition and at a low cost for the organisation (Coyle et al. 2009, p. 604). It has a
significant impact on the cost and productivity of various activities within logistics. Inventory
control and order selection speed and precision are dependent of identification systems that are
keyed by product packaging. Furthermore, costs of activities like transportation and storage are
affected by handling efficiency, which at the same time is influenced by the package design
elements such as size and density. Given the actual extent and complexity of global supply
chains and its derived costs, packaging is gaining more importance to achieve strategic
flexibility (Christopher 1998 p. 304).
Factors to Consider When Designing Packaging
According to Paine (1981 p. 1), packaging should provide these basic requirements at a cost
that maximises performance for each unit of cost:

Protection and preservation: It must protect the goods from environment and journeys

exigencies.
Containment: It must hold all that is within and keep it together while providing easy
handling and storage.

Machine performance: The materials it is made of must be able to perform satisfactorily

and economically the package making, forming filling and closing machines.
Communication: Retail packages must communicate their content. Transit packs must

inform destination, means of handling and stowage.

Convenience: They should provide characteristics such as easy opening or a dispensing

method. Also, it must fit the mode of transport employed and warehouse.
Disposal: Should have a proper disposal or recycling method.

Packaging Types
It is important to distinguish between three different types of packaging. The primary packaging
is the principal protection for the good normally made of metal, glass, plastics, paper and board.
These packs are usually delivered to the customer within secondary packaging, giving both
retailer and customer a more convenient way to handle the good. These are what is known as
the display packaging, which is the one that customers get to see when they buy the product.
The importance from these types of packaging, according to Krasovec and Klimchuk (2013 p.
43) is that more than two thirds of buying decisions are made depending how the product looks
like. Some of the packages design most relevant characteristics that customers take into
account are: colour, ink used, materials, information and brand (Deliya & Palmar 2012, p. 49).
The third level of packaging is the tertiary packaging or in-transit packaging. This is the one that
ensures safe and efficient delivery of the goods from the manufacturer throughout the
distribution chain. It should be able to protect the products from risks of stacking compression,
shock and vibration along the distribution chain (Levy 1993, p. 137). Another classification
method of packaging depends on the nature of the product. For food and beverage products,
plastic, glass and metal are the most commonly used materials. Cardboard is normally used
when the product is already secured and well protected (Marsh & Bugusu 2007, p. 41).
Environmental Implications of Packaging
According to the Environmental Protection Agency (EPA 2005, p. 13), only 31% of the municipal
solid waste (MSW) comes from packaging related materials. It considers that some sources of
reduction in packaging waste are: thinner packaging material, larger sized packages, products
designed to last longer, and products and materials reuse (Marsh & Bugusu 2007, p. 39).
Nevertheless, approximately 95% packagings environmental comes from its production, and
only 5% from the disposal. Food packaging represents almost 50% of this waste and normally
this is related to ineffective packaging. The material used for packaging is of great importance

for its functionality but it is also the source of many environmental concerns. Moreover, in recent
years, the challenge to meet certain environmental goals and being sustainable has increased
for packaging (Brody & Baldwin 2009, p. 105). As stated by Coyle et al. (2009 p.605), the
global market for sustainable packaging is projected to reach $142.42 billion by 2015. Growth
drivers include increased awareness about environmental hazards related to disposal and
recycling of packaging wastes, government initiatives to minimize greenhouse gas emissions,
and stringent regulations. There are several criteria that a sustainable package should meet:
(1) that throughout its life cycle it is safe, beneficial and healthy, (2) to be produced using good
practices and clean production technologies, (3) be designed to optimize materials and energy,
(4) be reusable and recyclable (Baldwin 2015, p. 99). In 2012, the International Organization for
Standardization (ISO) approved new rules on packaging and the environment with the purpose
of providing suppliers, packagers and brand owners a unified framework to reduce the impact of
packaging waste (Coles & Kirwan 2011, p. 217).
Importance of Standardisation
The biggest problem is in packaging standardisation is the incompatibility of shipping
containers, pallets and transport equipment. This affects in the loss of space in transporting
vehicles used for the shipments. With international shipping this is a big problem for the
producer given the fact that the longer the distance, the higher the cost of transport. According
to specialists responsible for efficiency operation of warehouses, the standardisation of shipping
containers should also be aligned to efficient handling and storage in warehouses (Stokes 1970,
p. 92).
Shipping containers normally have these dimensions:
Type of container
Twenty foot
Forty foot

Size
External
Internal
External
Internal

Dimensions
20 x 8 x 8 feet
40 x 8 x 8 feet

(6.10 x 2.44 x 2.44 m)

(5.29 x 2.18 x 2.02 m)
(12.19 x 2.44 x 2.44m)
(11.33 x 2.28 x 2.19 m)

The International Standard Organisation (ISO) has a standard dimension for packages of 600 x
400 mm. Nevertheless, Europe and the United States have inclined towards the Organisation
for Economic Cooperation and Development (OECD), and MUM standards. Recommended
sizes in mm for OECD and MUM standards are:

Pallet size (mm)

Box size (mm)

OECD

MUM

1200 x 1000

1200 x 1000

1200 x 800

600 x 500

600 x 400

600 x 400

500 x 400

500 x 300

500 x 300

400 x 300

400 x 300

Standardising has several benefits for the organisation, some of these include: (1) reduction of
handling time, labour cost and damage, (2) standard units have standard tariffs (3) decrease the
storage size and guarantee of a more stable supply (Schuur 1988, p. 16).
Conclusion
In conclusion, packaging is present basically in every product we find in the market and it plays
a very important function within the supply chain. This importance arises from the role
packaging plays when it comes to assuring that the good is delivered in the best conditions to
the final consumer. Although one could think that the process of packaging is simple, in reality, it
is very complex. The package can be either a display or a transport packaging and depending
on the nature of the product, the manufacturer should decide which material and design to use.
Nevertheless, there are many conditions this package should satisfy. From attractiveness and
good marketing for the customer to legal and other regulatory compliance. Nowadays, the
environmental concern is gaining great importance and it has a heavy impact in packaging.
Organisations and manufacturers have to assure that all of these and other requirements are
fulfilled. Additionally, they have to make sure that the production, handling and distribution of the
product packaging is as cost, time and resource efficient as possible. Here, is where
standardisation plays a key role. If all international shipment containers have the same size, the
organisation can plan and produce their goods with the certainty that their shape and size will
maximise the space available in the used mean of transport. Therefore, organisations should

give more importance to improve their packaging planning and production since it helps them to
increase their revenues but at the same time, is a main driver of costs.
Word count: 1445 words.
References
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