The Improvement of Packaging Logistics. Cost Cutting and Value Enhancing E-Book

• Herausgeber: GRIN Verlag
• Sprache: Englisch

Veröffentlichungsjahr: 2015

Beschreibung

Seminar paper from the year 2015 in the subject Business economics - Supply, Production, Logistics, grade: 1,3, HHL Leipzig Graduate School of Management (Lehrstuhl Logistik), language: English, abstract: Today´s business environment of tight competitiveness forces companies to cut cost whenever possible in order to maintain or increase profits. Most companies focus their cost-cutting effort on the production process. Therefore the potential of cost savings from an efficient supply chain is underestimated. Although, regarding worldwide service dispersion and increasing environmental concerns, improvement of logistics would be a valuable starting point for cost and pollution relief. In this paper, the cost cutting and value enhancing potential of an efficient supply chain is discussed in detail, with a special focus on the integral element Packaging Logistics (PL). The analysis is structured alongside given research questions, which will be sequentially addressed.

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Table of contents

List of appendices

List of abbreviations

1 Introduction

2 Analysis

2.1 The process of PL within the whole logistics chain

2.2 Relevant aspects of the IKEA Packaging Concept

2.3 Ways to improve PL before launching a product and related benefits

2.4 Possibilities to make top management aware of the importance of logistics

2.5 Industry sectors besides retail in which PL is of special strategic relevance

2.6 Further ways to increase the performance of logistics in a firm with respect to the top management´s influence

3 Conclusion

4 Appendix

5 Bibliography

List of appendices

Appendix. 1: Example of the Grid Approximation Model, following Wong and Z X Guo (2010), p. 6079.

Appendix 2: Graphical illustration of the ECR strategy, following Markus Mau (2003), p.23.

List of abbreviations

1 Introduction

Today´s business environment of tight competitiveness forces companies to cut cost whenever possible in order to maintain or increase profits. Most companies focus their cost-cutting effort on the production process. Therefore the potential of cost savings from an efficient supply chain is underestimated. Although, regarding worldwide service dispersion and increasing environmental concerns, improvement of logistics would be a valuable starting point for cost and pollution relief.

In this paper, the cost cutting and value enhancing potential of an efficient supply chain is discussed in detail, with a special focus on the integral element Packaging Logistics (PL). The analysis is structured alongside given research questions, which will be sequentially addressed.

2 Analysis

2.1 The process of PL within the whole logistics chain

PL is the fundamental element in logistic systems, as it has a significant impact on logistics cost and performance. It is a recurring process that pulls through the entire supply chain and that involves the process of planning, implementing and controlling of the coordinated packaging system from the first step on to reuse and disposal. Within this process lies the responsibility for providing adequate primary, secondary and tertiary packaging for each transportation occasion to secure the protection of the product[1]. These three packaging layers are then used for transport packaging, retail- and group packaging and consumer packaging.Nowadays, the growing conscience of waste management and environmental protection also imposes pressure on PL to minimize waste disposal to a minimal extent[2].Therefore, used packaging, returnable and reusable packaging and raw material recovery got as well into the focus of PL.

Further, providingimportant visual information about the package content for positive customer experience as well as for save and facilitated logistics processes, “including transport and handling as well as storage, order processing and warehousing”, is part of PL[3].

Through coordination of the mentioned elements at each level, cost efficiency and effectiveness of the supply chain, as well as the maximization of customer value and company profits can be achieved.

2.2 Relevant aspects of the IKEA Packaging Concept

The IKEA Packaging Concept is the realization of an internal idea generating support function that covers the whole supply chain management process, having the long-term goal to secure a closer location of packaging technicians to the product development process and the product itself.[4] As element of the distribution service competence function, the concept combines some of the most important steps relevant in cost reduction. It fosters the development of new and more efficient packaging design as well as the realization of crucial product adaptations and related supply chain processes. Proximity to day-to-day operations ensures a holistic view over the supply chain and simplifies the detection of inconsistencies.