The Role of Packaging in the Supply Chain:

The requirements of packaging

Forces changing the nature of packaging – from a South African perspective

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1. Protect

2. Identify

3. Keep Together (Unitize)

4. Enable handling

5. Marketing

6. Convey Information

1. Requirements of packaging:

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Requirements of packaging: 1. Protect

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Requirements of packaging: Identify

How does packaging contribute to product identification?

Answer:The right packaging combines size, design, and colour to attract potential consumers.http://wiki.answers.com

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Requirements of packaging: Identify

COLOR INDICATION

The package is designed with a number of indications that ensure fast and reliable product identification:

1. Lid colour indication – four colours represent different diameters: red, blue, green, and gold.2. The label on the tube’s lid indicates the implant’s diameter and length.3. A product characterization label is positioned outside the implant’s outer tube.http://www.paltopdental.com/Products/Implant_Packaging5

Requirements of packaging: Identify

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Easier to handle and control.

Requirements of packaging: Unitize

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Requirements of packaging:Enable Handling

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Requirements of packaging:Enable Marketing

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Requirements of packaging:Convey Information

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1. Technologya. Materials

b. Manufacturing techniques

2. Marketinga. Customisation

b. Drawing attention

3. Legislationa. Health concerns

b. Environmental concerns

c. Compulsory Information

4. Global movement and regulation

5. Modes of transport

6. Market dynamics

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2. Forces that are changing the nature of packaging:

1. Technologya. Materials and coatings

i. Mycobond – organic filler ( replaces foam)

(Mushroom)

ii Cellulose Bamboo and Banana

iii Organic (compostable) plastics

Iv New polymers

v Composites (Laminates and coated products)

vi Graphene – molecular layer deposition

vii Atomic Layer Deposition Coating Technique (Coating)

Coming soon – watch this space!

2. Forces that are changing the nature of packaging:

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Developed in Finland in the 1970’s

Coating which has excellent gas permeation resistance and is particularly suitable for treating packaging for food and pharmaceutical products. Thus far it has been used mainly in microelectronic applications. ALD leads to the manufacture of packaging materials which are thinner, lighter and better sealed than traditional barrier materials.

Atomic Layer deposition (ALD)

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Potential Applications(according to Wikipedia)

Room temperature distillation of methanol for fuel and human useSingle molecule gas detectionGraphene nanoribbonsGraphene Quantum dotsGraphene transistorsGraphene optical modulatorsIntegrated circuitsElectrochromic devices (Smart glass)Transparent conducting electrodesReference material for characterizing conductive and transparent materialsThermal Management Materials Solar cellsUltracapacitorsEngineered PiezoelectricityGraphene BiodevicesAnti bacterialStudy of liquidsDesalination

Graphene

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The packaging is made utilising two different certified compostable films – with a structure of one layer of Innovia Film’s NatureFlex™ NE30 film laminated to Novamont’s Mater-Bi. http://www.packaging-int.com/article/innovative-cereal-pack-uses-natureflex-film.htm

Cellulose

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1. Technology

b. Manufacturing techniquesi. 3-d printing

ii. Print – on –demand – e.g. Windows 7 launch

iii. Digital printing vs. Lithographic plate (offset)

2. Forces that are changing the nature of packaging (continued)

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Benefits:Transportation costs to send printed material in > eliminatedWarehousing costs to store printed material in inventory > greatly reducedInventory destruction costs to scrap outdated/excess inventory > greatly reducedFlexibility to update marketing materials on a regular basis at no additional cost > enabled with PODFast turnaround times for print production > offered with PODCustom/Variable data printing > offered with PODSmall volume / specialty print job capability that can be easily integrated into existing fulfilment services for a customer > enabled with PODEnvironmental sustainability - digital printing does not require film, plate-making chemicals, VOC-emitting and oil-based inks, synthetic proofing materials, or large amounts of make-ready paper. Digital is a cleaner, greener way to print.

http://www.fulfillmentamerica.com/pod/print-on-demand-benefits.cfm

Digital Printing: Print On Demand

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Studies by the Plastics Federation of South Africa found the carbon footprint of a 1 litre sachet of milk is 60% lower than that of equivalent PET bottle. According to the latest figures by the Milk Producers Organisation of South Africa, only 20% of the annual production of 1,5 billion litres is packaged in sachets, while 70% is packaged in plastic bottles.

It requires almost 2,5 times more energy to bottle liquids than using sachets, - South African production plants can save up to 60% of the energy consumption by switching to milk sachet packaging.http://all4women.co.za/food-and-recipes/food-articles/competition-food-tap-it-milk-dispensing-win.html

New products

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But digital packaging isn’t only for cereal. General Mills is working on adding assets to their whole line of products from cake mixes to snack bars. How about a downloadable pedometer app attached to a low calorie yogurt or an interactive Olympic schedule on a box of Wheaties?

http://www.marketingpilgrim.com/2012/02/the-future-of-cereal-packaging-includes-a-digital-surprise.html

New Products (Continued)

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New Products:

Paint-on Lithium-Ion Batteries

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• Food and food packaging have been at the forefront of nanotechnology innovation. Nanotechnology advancements in food additives and packaging are increasing shelf-life, improving flavour, and detecting pathogens in a wide variety of foods.

• Packaging enhancements are even extended to the marketability of products through colour-changing inks, printable RFIDs and printable active displays (http://www.khlaw.com)

• Use of nanomaterials in food packaging:- examples:

• bottles made with nanocomposites that minimize the leakage of carbon dioxide out of the bottle; this increases the shelf life of carbonated beverages without having to use heavier glass bottles or more expensive cans.

• Food storage bins with silver nanoparticles embedded in the plastic. The silver nanoparticles kill bacteria from any food previously stored in the bins, minimizing harmful bacteria.

( http://www.understandingnano.com )

iv. Nanomaterials in Food Packaging

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a. Customisation:

Economic order quantity of one unit

Rapid prototyping and concurrent development

Short setup time

Intelligent use of Options

Mass customisation was defined by Tseng & Jiao (2001, p. 685) as "producing goods and services to meet individual customer's needs with near mass production efficiency"

b. Drawing attention

Bigger, louder, shinier, more

complex

2. Marketing

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a. Health concerns

b. Environmental concerns

c. Compulsory information

3. Legislation

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• Cost• Linked to cost of fossil fuels – will restrict air and road movement

• Africa needs to invest in transport infrastructure – especially road and rail, then airports and ports

• Regulations• Restrictions on use of certain organic materials (wood and foodstuff )

• Border control• Should become less in Africa (free trade zone) Packaging to allow for

easy scanning and inspection to minimize delays.

4. Global movement

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a. Road

b. Rail

c. Air

d. Water

e. Pipeline

6. Modes of transport

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a. Demography

b. Purchasing behaviour

c. Social conscience

5 Market Dynamics

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A. Demography:

Age distribution, culture, education, Urbanisation and income distribution determines the type of product being bought.

B. Purchasing habits – determine the quantities and timing of fmcg (and other) products being bought:

America: Philippines:

5 Market Dynamics

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Go Green

Avoid

Reduce

Re-use

Recycle

c. Social Conscience:

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a. Fragility

b. Temperature control

c. Breathing Requirements

Organics and livestock

d. See “requirements of packaging”!

8. Product (Specific) requirements

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In the line at the supermarket, the cashier told an older woman that she should bring her own grocery bags because plastic bags weren't good for the environment. The woman apologized to him and explained, "We didn't have the green thing back in my day." The clerk responded, "That's our problem today. Your generation did not care enough to save our environment." He was right -- our generation didn't have the green thing in its day.

Back then, we returned milk bottles, lemonade bottles and beer bottles to the shop. The shop sent them back to the plant to be washed and sterilized and refilled, so it could use the same bottles over and over. So they really were recycled. But we didn't have the green thing back in our day.

We walked up stairs, because we didn't have an escalator in every store and office building. We walked to the grocery store and didn't climb into a 300-horsepower machine every time we had to go two blocks. But she was right. We didn't have the green thing in our day.

Back then, we washed the baby's nappies because we didn't have the throw-away kind. We dried clothes on a line, not in an energygobbling machine burning up 240 volts -- wind and solar power really did dry the clothes. Kids got hand-me-down clothes from their brothers or sisters, not always brand-new clothing. But that old lady is right; we didn't have the green thing back in our day.

Back then, we had one TV, or radio, in the house -- not a TV in every room. And the TV had a small screen the size of a handkerchief. In the kitchen, we blended and stirred by hand because we didn't have electric machines to do everything for us. When we packaged afragile item to send in the mail, we used a wadded up old newspaper to cushion it, not Styrofoam or plastic bubble wrap. Back then, we didn't fire up an engine and burn petrol just to cut the lawn. We used a push mower that ran on human power. We exercised by working so we didn't need to go to a health club to run on treadmills that operate on electricity. But she's right; we didn't have the green thing back then.

We drank from a tap when we were thirsty instead of using a cup or a plastic bottle every time we had a drink of water. We refilled writing pens with ink instead of buying a new pen, and we replaced the razor blades … instead of throwing away the whole razor just because the blade got dull. But we didn't have the green thing back then.

Back then, people took the bus and kids rode their bikes to school or walked instead of turning their moms into a 24-hour taxi service. We had one electrical power point in a room, not an entire bank of sockets to power a dozen appliances. And we didn't need a computerized gadget to receive a signal beamed from satellites 2,000 miles out in space in order to find the nearest pizza shop.

But isn't it sad the current generation laments how wasteful we old folks were just because we didn't have the green thing back then?

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Why Worry? Let us take it from this…

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To this!